Fort Smith area home sales up 38% in July

Area home sales showed signs of strength as July's home sales report shows a jump in sales in July that is 38% higher than July 2012.

Sebastian County showed the biggest improvement, with 123 homes sold this July versus 85 homes sold in July 2012. The total value of this year's sales were $18.209 million, a 48% spike.

In Crawford County, 48 homes were sold in July, an improvement from July 2012 when only 38 homes were sold. In all, the value of homes sold increased by 12.8% to $5.501 million last month.

Realtor Clif Warnock, principal broker at Warnock Real Estate in Fort Smith, said the jump in not only the number of homes sold, but also in the total values, was due to increasing interest rates.

"The difference has been movement in those interest rates. It's not been good that interest rates have gone up slightly, but any movement in interest rates prompt people to take action," he said.

With interest rates still near historic lows, many buyers are not only jumping due to the expected rise in interest rates, but they are also jumping to buy more home at a lower monthly cost.

"The interest rates, which is a driving force in real estate sales no matter what, (have been the key to the rise in number of homes sold and the values) since over 95% of the people buying homes have to finance them."

As interest rates increase, whether at a large or slow pace, Warnock is convinced that the market in both counties will continue to show spikes.

"For just a short amount of time, it does cause people that were sitting on the fence to go ahead and make a decision. The other part of that is, and there still are a lot of people who are undecided and sit and wait to see what turn the economy is going to take. Will it stay like it is or continue to get a little better? With each incremental increase with the (interest rates), I think you'll see people see that trend going to buy homes."

And even though July's numbers have shown growth in both counties, the total year-to-date numbers are still mixed. In Crawford County, there have only been 267 homes sold this year, versus 309 sold during he same period in 2012, resulting in $36.451 million in sales volume last year versus $28.628 million this year.

In Sebastian County, the numbers have remained in the positive, with growth in both the number of home sold and the volume, with 688 homes having been sold so far this year with a total value of $95.055 million, while only 617 homes were sold in the same period in 2012 with a value of only $83.58 million.

In order to keep the growth in home sales from reaching a plateau or possibly sliding back into negative territory, Warnock said economic development in the region must not only continue, but pick up pace.

"The one thing that (the area) has to deal with is the jobs that are in Fort Smith – without a job, without an income, you can't buy a home," he said. "I think that's what has got to spur more activity, is just an increase a number of jobs in Fort Smith to sustain that increase."

Home Sales Data
(January-July)
• Crawford County
Unit Sales
2013: 267
2012: 309

Total Sales Volume
2013: $28.628 million
2012: $36.451 million

Median Sales Price
2013: $102,950
2012: $110,000

• Sebastian County
Unit Sales
2013: 688
2012: 617

Total Sales Volume
2013: $95.055 million
2012: $83.580 million

Median Sales Price
2013: $114,900
2012: $115,000