Residential Housing Market Beginning to Set a Faster Pace

Northwest Arkansas

by Paul Gatling ([email protected]) March 12, 2013 11:03 am 84 views 

The 32nd edition of Arvest Bank’s Skyline Report for Benton and Washington counties was released today, with more evidence of positive movement in the residential real estate market.

In the last six months of 2012, according to the report, the number of building permits issued jumped to 980, a 53 percent increase from the 642 building permits issued during the same period of 2011.

The total also represents an increase of 11 percent from the 880 building permits issued in the first six months of 2012.

“The Northwest Arkansas residential real estate market continued to post positive signs in the last six months of 2012, building on the gains made in the first six months of the year,” said researcher Kathy Deck. “It is nowhere near where it was at the peak of the boom, but it is rising from what we can consider the bottom of the market.”

Deck is director of the Center for Business and Economic Research at the University of Arkansas’ Walton College of Business. The CBER conducts the Skyline Report, which is released twice a year and analyzes data pertaining to various property markets in Benton and Washington counties.

Other reports offered by the CBER relate to commercial and multifamily markets.

The report has been made available since 2004. Other highlights of Tuesday’s release include:

  • Benton County accounted for 641 of the residential building permits, while Washington County accounted for 339.
  • A total of 28,464 lots were in the 393 active subdivisions identified by Skyline Report researchers in the second half of 2012.
  • In 165 of the 393 active subdivisions, no new construction or progress in existing construction has occurred during the last four quarters.
  • During the second half of 2012, 777 new houses in active subdivisions became occupied, up 70.4 percent from 456 in the first half of 2012.
  • Using the absorption rate from the past twelve months implies that there was a 121.5-month supply of remaining lots in active subdivisions in Northwest Arkansas in the second half of 2012.
  • An additional 3,279 residential lots have received preliminary approval in Northwest Arkansas. Adding these proposed lots to those in active subdivisions yields 153.4 months of inventory in the second half of 2012.
  • According to the assessors’ databases, 63.3 percent of houses in Benton County and 64.9 percent of houses in Washington County were owner-occupied.
  • From July 1 to Dec. 31, there were 2,982 houses sold in Benton and Washington counties. This is an increase of 0.5 percent from the 2,967 sold in the previous year.
  • The Bentonville School District accounted for 30.6 percent of the houses sold in the region, while the Rogers School District accounted for 19.1 percent.
  • There were 3,144 houses listed for sale in the MLS database as of Jan. 2, at an average list price of $251,918.