July home sales down 36.5% in Fort Smith area

July delivered proof that home sales in Arkansas would fall following the expiration of a federal tax credit for homebuyers.

The number of new and existing homes sold during July 2010 in Crawford, Franklin and Sebastian counties totaled 120, down 36.5% compared to July 2009, according to a report released Sept. 9 by the Arkansas Realtors Association.

Statewide, the number of homes sold fell 31.62% to 1,760 when compared to July 2009.

In the relative economic health of the Northwest Arkansas economy, home sales struggled, with Benton County sales down 38.86% in July and Washington County sales down 39.85% for the month. Year-to-date, home sales in Benton and Washington counties are down 2.69% and up 1%, respectively.

Year-to-date totals are still positive for the Fort Smith region and state, but that’s likely to change if trends continue. To be sure, home sales in the first half of 2010 were boosted by the federal tax credit. With that credit now expired, many housing market watchers expect a relative decline in home sales the remaining months of 2010. 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.

The number of new and existing homes sold during the January-July 2010 period in Crawford, Franklin and Sebastian counties totaled 1,101, up 1.47% over the same period in 2009. The value of the homes sold in the three counties during the first seven months of 2010 totals $137.994 million, up 3.75% compared to the same period in 2009.

Sebastian County home sales have helped boost the regional stats, with home sales up more 3.89% in the county for the first seven months of 2010. The value of those Sebastian County homes sold in the period totaled $98.913 million, up 8.76% compared to the 2009 period.

January-July home sales in Arkansas totaled 12,532, up 12.54% over the 2009 period. The value of homes sold January-June totaled $1.797 billion, up 10.89% compared to the 2009 period.

REAL ESTATE STATS
• Number of homes sold
Crawford County
Jan.-July 2010:  307
Jan.-July 2009:  323
-4.95%

Franklin County
Jan.-July 2010: 46
Jan.-July 2009: 42
-5.41%

Sebastian County
Jan.-July 2010:  748
Jan.-July 2009:  720
3.89%

• Value of homes sold
Crawford County
Jan.-July 2010:  $35.785 million
Jan.-July 2009:  $39.154 million
-8.6%

Franklin County
Jan.-July 2010:  $3.296 million
Jan.-July 2009:  $2.897 million
13.77%

Sebastian County
Jan.-July 2010:  $98.913 million
Jan.-July 2009:  $90.946 million
8.76%

• Average price of homes sold
Crawford County
Jan.-July 2010:  $116,566
Jan.-July 2009:  $121,221
-3.84%

Franklin County
Jan.-July 2010:  $72,504
Jan.-July 2009:  $68,981
5.11%

Sebastian County
Jan.-July 2010:  $132,237
Jan.-July 2009:  $126,315
4.69%

The top five Arkansas counties in terms of number of homes sold during Jan.-July 2010: 
Pulaski County (2,590, up 5.07% from 2009)
Benton County (1,881, down 2.69% from 2009)

Washington County (1,210, up 1% from 2009)

Saline County (889, up 12.39% from 2009)
Sebastian County (748, up 3.89% from 2009)