Home Sales Down Less Than 5% In 2010

It could have been worse.

Home sales in Arkansas fell nearly 5% in 2010 compared to 2009 numbers as the state’s battered housing market lost momentum from the early part of the year thanks to expired tax credits.

During the first 5 months of 2010, home sales were up more than 13% statewide as federal tax credits for first-time homebuyers stimulated purchases. During the remaining 7 months of the year, home sales plummeted, although December sales leveled off according to a year-end report from the Arkansas Realtors Association (ARA).

In December 2010, statewide home sales dropped a scant 0.9%, while sales in the top 5 markets rose by more than 2%. Benton and Washington counties led the way with 7.5% and 5.2% respective year-over-year improvements.

For the full year, statewide home sales dropped by 4.8%, while home sale values fell by a smaller margin, 3.9%. In 2010, the total number of home sold in the markets tracked by the ARA equaled 24,128 compared to 25,340.

Those units sold amounted to $3.48 billion in total sales for the year compared to $3.62 billion in 2009.

Average home prices were slightly higher in 2010. The statewide average price for a housing unit averaged $144,389 versus $143,002 in 2009 – a less than one percent decline.

"The report confirms what we’ve been saying all year – the end of the first time homebuyers tax credit created an exaggerated dip in the Arkansas housing market," said Amy Glover Bryant, Director of Communications for the ARA. "We knew that once the tax credit ended their would be a slow down in sales activity; however, we believe this month’s report (December) represents a return to what we would categorize as normal numbers."

You can access a spreadsheet of the December and full-year ARA report at this link.