Area home sales up more than 10% in June

Home sales during June in Crawford and Sebastian counties were up more than 10% thanks to a big gain in Sebastian County.

Crawford County saw 40 new and existing homes sold in June, down 7% compared to June 2009, while Sebastian County saw a 19% increase with 126 homes sold in June. The figures are from the King Realty Group’s June report prepared by Realtor Ernie Schimmelman.

“What stands out to me is the June trend declined in both counties. Crawford dropped below 2008 and 2009 performances, while Sebastian went below 2008 but stayed above 2009 by 19%,” Schimmelman noted in the report.

As has been the trend, activity in the market is focused on homes priced below $200,000. In Crawford County, there were 278 homes in that sector, or 75.5% of the inventory of homes for sale. In Sebastian County, 643 homes for sale are listed at or below $200,000, or 72.1% of the market.

Schimmelman said expiration of a home-buyer tax credit may depress numbers further into 2010. The federal tax credit provided 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.

“Some have said that 2010’s results might have trended lower altogether than 2008 and 2009 had it not have been for the government stimulus,” Schimmelman said. “If that’s true, with this encouragement now gone we may see a further trend decline in July and August when there is usually a peak.”

The National Association of Realtors recently reported that existing home sales nationwide fell 5.1% in June compared to May, but are 9.8% above the level of June 2009.

Lawrence Yun, chief economist for the association, said delays in closing will push some effects of the tax credit into July and August numbers. However, Yun is also not optimistic about overall 2010 numbers.

“Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels,” Yun noted in the NAR report.

The King Realty Market Group Report (as prepared by Ernie Schimmelman):
Crawford County (June)
Homes listed: 368
Homes sold, June 2010: 40
Homes sold, June 2009: 43
Mean price, June (rolling 12-month rate): $120,630
Homes listed $0 to $200,000: 278
Homes listed $201,000 to $500,000: 78
Homes listed $501,000 and up: 12

Sebastian County (June)
Homes listed: 891
Homes sold, June 2010: 126
Homes sold, June 2009: 106
Mean price, June (rolling 12-month rate): $130,261
Homes listed $0 to $200,000: 643
Homes listed $201,000 to $500,000: 209
Homes listed $501,000 and up: 39