The Compass: Mid-quarter report focuses on regional subdivision activity

Less than 5% of lots in active Fort Smith subdivisions have a completed but unoccupied home, an indication the Fort Smith regional housing sector is stable, according to information from Streetsmart Data.

The new report on the Fort Smith metro residential market is to become a regular mid-quarter component of The Compass. Funded and managed by The City Wire, The Compass is a quarterly regional economic report with data collection and analysis handled by Jeff Collins, a nationally respected economist with Springdale-based Streetsmart.

Also, Fort Smith-based Benefit Bank has joined the effort to provide a valuable and comprehensive assessment of the regional economy as the Presenting Sponsor of The Compass.

“Benefit Bank is thankful to be the Presenting Sponsor of The Compass and looks forward with others to an independent report that tracks all of our efforts to develop our regional economy,” said Benefit Bank president and CEO Joe Edwards.

THE COMPASS
The Compass grade for the first quarter of 2009, based on eight sets of data and Collins’ analysis of the information, is a D+. The grade means that relative to the region’s historic economic performance, the first quarter of 2009 saw economic decline. Building permit values, one of the eight baseline components of The Compass, was positive in the first quarter report and received a B grade.

“Although the first-quarter 2009 building permit values (measured in a three-month rolling average) were lower than those in the first quarter of 2008, the consistent uptick in monthly gains suggest positive momentum in the building sector,” according to The Compass.

METRO HOUSING MARKET
Combined with improving regional home sales, the new Streetsmart report provides further analytical data suggesting the Fort Smith regional residential housing sector is stable considering the tough national economic conditions. Collins said continued unemployment is the uncertainty facing the market.

“The market for residential real estate in Crawford and Sebastian counties is remarkably stable despite the economic turmoil that has affected so many markets across the country,” Collins said. “Current risk lies in the duration of the downturn and its continued affect on employment, especially in the manufacturing sector.”

The preliminary April unemployment rate for the Fort Smith region decreased to 7% from a March rate of 7.3%. The number of unemployed in the Fort Smith metro area rose from 5,711 in April 2008 to 9,737 in April 2009, a 70.4% increase.

The Streetsmart report shows that 4.96% and 2.27% of lots in active Fort Smith and Van Buren subdivisions, respectively, have a completed but unoccupied home. The report also shows that 58.49% of lots in active Fort Smith subdivisions are empty (without construction), and 53.74% of lots in Van Buren being empty.

“Data for the report are obtained by Streetsmart researchers directly as well as through secondary sources such as the city and county governmental offices. By obtaining data from multiple sources, each with its inherent perspectives and biases, Streetsmart attempts to provide as complete a picture as possible of the health of the market,” notes the Streetsmart literature.

Highlights of the report (Contact Streetsmart to obtain the detailed report) for the four main cities in the two counties (All info relates to active subdivisions. Subdivisions built out or with no construction for several quarters are dropped from the review.):
Alma
Empty lots: 57.54%
Starts: 0.51%
Under construction: 1.28%
Completed but not occupied: 3.64%
Occupied: 36.83%

Fort Smith
Empty lots: 58.49%
Starts: 1.77%
Under construction: 3.46%
Completed but not occupied: 4.96%
Occupied: 31.32%

Greenwood
Empty lots: 47.7%
Starts: 0.18%
Under construction: 2.65%
Completed but not occupied: 3%
Occupied: 46.47%

Van Buren
Empty lots: 53.74%
Starts: 0.13%
Under construction: 1.07%
Completed but not occupied: 2.27%
Occupied: 42.76%

REGIONAL HOME SALES
Home sales in the Fort Smith region continue to post double-digit declines compared to 2008, but the level of decline is moving in the right direction, according to information from the Arkansas Realtors Association.

The number of homes sold in Crawford, Franklin and Sebastian counties during the first four months of 2009 fell 13.17% compared to the same period in 2008, according to ARA figures released Tuesday (June 2). However, the number of homes sold in the three counties during the first three months of 2009 was down 22% compared to the first quarter of 2008.

There were 560 homes sold in the first four months of 2009 in Crawford, Franklin and Sebastian counties, down from the 645 sold in the same period of 2008. The combined value of the homes sold in the first four months of 2009 in the three regional counties was $67.82 million, down 12.4% from the same period in 2008.