Home sales down more than 17% in Fort Smith metro through August

Higher interest rates continue to reduce home sales activity in the Fort Smith metro. There were 2,219 homes sold in the Fort Smith metro between January and August, down 17.4% compared with the same period in 2022.

The value of January-August sales totaled $481.432 million, down 17.4% compared with the same period in 2022, according to data provided by Ashlee Milton, an executive broker with Chuck Fawcett Realty in Fort Smith and Northwest Arkansas.

The average home price for sales in the first eight months of 2023 was $216,959, just above the $216,869 in the same period of 2022. Average days on market in the January-August period was 73, below the 65 days in the same period of 2022.

Existing U.S. home sales fell 15.3% in August compared with August 2022, according to the National Association of Realtors. Freddie Mac reported that the average interest on 30-year fixed rate mortgages was 7.31% as of Sept. 28, up from around 6.7% during the same time in 2022, and well above the 3.01% in late September 2021. The 15-year rate was 6.72% as of Sept. 28, also well above the 2.28% in late September 2021.

“Last year for this time frame we were still experiencing lower interest rates. With the rate change in September of last year, things slowed down quickly – what felt like over night,” Milton said.

She said buyers are adjusting to the higher rates and are returning to the market, but are asking for more concessions, including list price reductions.

“The days of having 80 offers available to the sellers the day the house went live on the market are no longer. Competitive offers are still being submitted and there are still highest and best or most favorable offer calls being requested but there are usually a handful of buyers not ten plus,” Milton noted.

The metro had 3,827 homes sales in 2022, down 13% from 4,400 in 2021. The value of sales totaled $824.117 million, down 3.4% compared with the same period in 2021. Home sales in 2021 were up 10.6% over 2020, with 2020 home sales up 13.4% compared with 2019. 2021 marked a record of 4,400 home sales in the Fort Smith metro. Average home prices in Sebastian and Crawford counties topped $200,000 for the first time in 2021.

Metro area data comes from Crawford, Franklin, Logan, Scott and Sebastian counties in Arkansas, and parts of eastern Oklahoma. About two-thirds of the home sales are from Crawford and Sebastian counties.

SEBASTIAN, CRAWFORD COUNTY NUMBERS
Home sales in Sebastian County during the first eight months totaled 984, down 21.1% from 1,249 in the same period in 2022. Home sales in the county represent 44.3% of homes sold in the metro.

The value of homes sold was $224.902 million between January and August, 17.8% below the $273.562 million in the same period of 2022. The average home sales price was $228,559, below the $229,025 in the same period of 2022. Average days on market during the first eight months was 68, above the 60 in the same period of 2022.

Home sales in Crawford County during the first eight months was 436, down 23.8% compared with the 572 in the same period of 2022. Home sales in the county represent 19.6% of homes sold in the metro.

The value of homes sold was $94.563 million in the eight months, below the $111.989 million in the same period of 2022. The average home sales price was $216,888, below the $218,729 in the same period of 2022. Average days on market was 62, above the 55 in the same period of 2022.

METRO HOME SALES NUMBERS
• Fort Smith Region (Crawford, Franklin, Logan, Scott and Sebastian counties, and areas of eastern Oklahoma)
January-August 2023
Homes sold: 2,219
Value of home sales: $481.432 million
Average price: $216,959

January-August 2022
Homes sold: 2,686
Value of home sales: $582.508 million
Average price: $216,869

• Sebastian County
January-August 2023
Homes sold: 984
Value of home sales: $224.902 million
Average price: $228,559

January-August 2022
Homes sold: 1,249
Value of home sales: $273.562 million
Average price: $219,025

• Crawford County
January-August 2023
Homes sold: 436
Value of home sales: $94.563 million
Average price: $216,888

January-August 2022
Homes sold: 572
Value of home sales: $111.989 million
Average price: $218,729