Regional home sales up 6.2% January-May

The bright spot in the Fort Smith regional economy continues to be the real estate market, with area home sales up more than 6% in the first five months of 2010.

The number of new and existing homes sold in the January-May 2010 period in Crawford, Franklin and Sebastian counties totaled 805, up 6.2% over the same period in 2009. The value of those homes sold in the period totaled $98.746 million, up 8.8% compared to the 2009 period, according to a report released July 1 by the Arkansas Realtors Association.

Percentage gains in regional home sales lag the statewide average.

January-May home sales in Arkansas totaled 10,086, up 13.39% over the 2009 period. The value of homes sold January-May totals $1.429 billion, up 13.43% compared to the 2009 period.

While most in the real estate sector credit the gains to the federal homebuyer tax credit, it is unclear if the momentum will continue after the credit program expires.

The federal tax credit cited for the Arkansas gains provides up to $8,000 for first-time home buyers and up to $6,500 to home buyers. The program requires homes to be under contract by May 1 and close before July 1. It is expected President Barack Obama will sign legislation that extends the closing deadline to Sept. 30. The May deadline does not change. The closing deadline was extended to give banks more time to handle the influx of home contracts prior to the July 1 deadline.

“The May housing market report, then, reflects a good number of closings generated by people wanting to claim a tax credit. The same will be true of the June report,” noted commentary from the ARA. “The reports for July, August and September will also reflect a few of those closings, provided a closing date deadline extension approved by Congress this week is signed into law by President Barack Obama.”

May was an active month for home sales in the Fort Smith region. There were 144 homes sold during May in Sebastian County, up 28.57% compared to May 2009. Crawford County posted 63 homes sold, an 8.62% increase compared to May 2009.

The residential market in Northwest Arkansas also saw potential benefits of the tax credit rush. Home sales in Benton and Washington counties totaled 2,141 for the first five months of 2010, up 6.8% compared to the 2009 period. Year-to-date sales in the two counties were down 0.7% going into April.

REAL ESTATE STATS
Number of homes sold
Crawford County
Jan.-May 2010: 235
Jan.-May 2009: 237
-0.84%

Franklin County
Jan.-May 2010: 32
Jan.-May 2009: 34
-5.88%

Sebastian County
Jan.-May 2010: 538
Jan.-May 2009: 487
10.47%

Value of homes sold
Crawford County
Jan.-May 2010: $28.48 million
Jan.-May 2009: $28.216 million
0.94%

Franklin County
Jan.-May 2010: $2.307 million
Jan.-May 2009: $2.401 million
-3.88%

Sebastian County
Jan.-May 2010: $67.959 million
Jan.-May 2009: $60.121 million
13.04%

Average price of homes sold
Crawford County
Jan.-May 2010: $121,193
Jan.-May 2009: $119,055
1.8%

Franklin County
Jan.-May 2010: $74,120
Jan.-May 2009: $70,621
2.12%

Sebastian County
Jan.-May 2010: $126,318
Jan.-May 2009: $123,452
2.32%

The top five Arkansas counties in terms of number of homes sold during Jan.-May 2010:
Pulaski County (1,822, up 18.16% from 2009)
Benton County (1,300, up 2.36% from 2009)
Washington County (841, up 14.73% from 2009)
Saline County (640, up 23.31% from 2009)
Faulkner County (tied: 538, up 13.5% from 2009)
Sebastian County (tied: 538, up 10.47% from 2009)