NWA home sales rally continues

Agents and brokers across Northwest Arkansas are back in business as the residential market continues to rally with more sales and higher home prices despite the recent uptick in interest rates.

In July, agents sold 695 homes in Benton and Washington counties. Those home sales totaled in excess of $134.18 million, up nearly 25% from the same month last year, according to MountData.com. Between January and July, the two counties recorded 4,136 home sales, with an accumulated volume exceeding $754 million.

Paul Bynum, market analyst with Mount Data, said consumer confidence remains at a five-year high as the local job market and population growth in this region provide steady buyer demand.

Harold Crye, CEO of Crye-Leike Real Estate, said his firm rung up $30 million in sales last month in the Northwest Arkansas market. Sales rose 27% from July of last year. Local Crye-Leike agents sold 244 homes, a 23% increase from the same month in 2012. Crye-Leike is one of the three largest firms in the local region and the fifth largest in the country. Crye said across the Southeast where his firm is concentrated, company sales totaled $548 million in July, up 22% from a year ago.

Year-to-date, Crye said sales volume for his firm has already surpassed the $3 billion mark, an 18% gain over the same time last year and the Northwest Arkansas market is helping to fuel that growth.

Nicky Dou, an executive broker with local Coldwell Banker franchise, said 2013 has been a tremendous year for her business.

“I have already doubled my production from last year,” Dou said.

George Faucette, CEO of the local Coldwell Banker franchise, said the firm posted a 38% sales gain in July, and that increase includes lots and homes. Through the first seven months of this year, he said sales volume is up 27%, with a 19% uptick in units sold.

“The market is terrific and our agents are extremely busy. The new written business continues to not only keep up with, but outpace closed business,” Faucette said.

Bynum reported 768 pending sales at the end of July, this compared to 595 pending transactions a year ago. He said pending activity is a rough leading indicator for future sales.

Faucette said the relocation business is up considerably, but even so, he sees a larger percentage of the business coming outside of that source. Much of that increase is coming from local people buying houses, including first time, move ups, and empty nesters, he said. Dou said the luxury home market is also picking up steam as she just sold two homes near the $1 million price range in the past two months.

There have been 9 sales this year for homes priced above $1 million, according to Bynum.

While Dou has been successful moving higher end properties, Bynum said median home prices in July were $162,250 in Benton County and $154,000 in Washington County. Median home prices are up 4.2% and 6.3%, respectively. Faucette said average sales price recorded by his firm in July was $201,000, flat with the same period last year.

Dou said the days of “getting a steal” are gone for now. Most listings have been selling for near asking price. New construction homes are going for full price, with very little concessions.

Bynum said balanced inventory levels with buyer demand is helping to push median prices higher, which is good news for sellers.

Homes selling in the past three months spent an average of 45 days from listing to contract.

HOME SALES (January through July)
Benton County
Sales Volume
2013: $483.44 million
2012: $385.39 million
25.44%

Unit Sales
2013: 2,589
2012: 2,206
17.36%

Median Sales Price
2013: $152,000
2012: $141,000
7.8%

Washington County

Sales Volume
2013: $270.38 million
2012: $221.37 million
22.13%

Unit Sales
2013: 1,546
2012: 1,366
10.98%

Median Sales Price
2013: $148,500
2012: $135,000
10%

Source: MountData.com