Residential Market Closer to Balance

Existing home sales and residential building permits were both up in Northwest Arkansas for the fourth quarter of 2009, indicating some balance in the single-family home market.

According to the Skyline Report released March 4, 1,589 homes sold in Benton and Washington counties between August 15 and November 15, 2009, up nearly 35 percent from 1,179 for the same period a year prior. 

Arvest Bank Group Inc. commissions the Center for Business and Economic Research within the University of Arkansas’ Walton College of Business to gather and report data on residential, multi-family and commercial property in Northwest Arkansas.

The average listing price of the 4,785 homes listed in the Northwest Arkansas MLS as of December 1 was $236,658.

The average selling price of existing homes declined 7.7 percent in Benton County and nearly 14 percent in Washington County when compared to the same period a year prior.

The number of complete, but unoccupied, homes in the two-county market fell to 339 from 542 at the end of the third quarter.

There were 338 residential building permits issued from September through November, up from 270 a year prior, a 25 percent increase. 

“Good news this quarter is that we are at a place where permit levels are appropriate for current demand and the glut of complete but unoccupied homes has been largely cleared out,” Kathy Deck, director of the CBER, stated in a news release.

The Northwest Arkansas average permit value was $202,997, but Totitown topped the market with an average permit value of $392,770 (three total permits issued). Greenland was at the low end of the market, with average permit value of $68,500 for its two permits.

In terms of lots, the Skyline Report indicates there were 27,885 lots in 383 active subdivisions. At current absorption rates, that’s a nine-year supply. If the additional 6,000 lots that are in preliminary stages were all approved, it would equal a 13-year supply.