Regional home sales down more than 20%

The real estate market continues to struggle in the Fort Smith region, with February home sales dipping almost 30% in Crawford County and down more than 16% in Sebastian County.

However, Realtors are hopeful a new federal tax credit will soon begin to spur sales.

There were 218 homes sold in January and February in Crawford, Franklin and Sebastian counties, down 21.2% from the 277 sold in the same period of 2008, according to report released Wednesday (April 1) by the Arkansas Realtors Association. The combined value of the homes sold in January and February in the three regional counties was $26.2 million, down 25% from the same period in 2008.

Statewide, the number of homes sold year-to-date in 2009 was 2,652, down 24.68% from the same period in 2008. The value of homes sold statewide during the first two months of 2009 is $366.17 million, down 28.98% from the same period in 2008.

“Yes, sales are down a little bit,” noted Janet Matlock, a 17-year veteran of the regional real estate market and a Realtor with Chuck Fawcett Realty.

Matlock predicted sales will improve in the second quarter of 2009 because Realtors, lending officials and the public are learning more about an $8,000 federal tax credit now available to first-time home buyers.

“Lenders are now to the point that they can offer it (tax credit) to buyers, and Realtors are doing the same. Realtors are interested in selling that package to first-time home buyers. That’s what we are hoping will give us a good jump start for the year,” Matlock explained.

Matlock’s assessment was seconded by Ethan Nobles, director of media relations for the Arkansas Realtors Association.

“It appears that record low mortgage rates and the government’s $8,000 tax credit for first-time homebuyers is encouraging consumers to think seriously about purchasing homes. That increased interest is a very good sign,” Nobles noted in a statement to The City Wire.

Matlock said this is the third down cycle she has worked, and added that it is not as bad as some years in the 1990s when interest rates hovered around and above 10%.

“That high interest rates just killed everybody for so long,” Matlock said. “But rates are now around 4.5%, and that, along with the $8,000 (tax credit) is keeping us moving.”

REAL ESTATE STATS
Number of homes sold
Crawford County
Jan.-Feb. 2009: 64
Jan.-Feb. 2008: 91

Franklin County
Jan.-Feb. 2009: 6
Jan.-Feb. 2008: 8

Sebastian County
Jan.-Feb. 2009:148
Jan.-Feb. 2008: 178

Value of homes sold
Crawford County
Jan.-Feb. 2009: $7.67 million
Jan.-Feb. 2008: $11.25 million

Franklin County
Jan.-Feb. 2009: $395,200
Jan.-Feb. 2008: $674,000

Sebastian County
Jan.-Feb. 2009: $18.14 million
Jan.-Feb. 2008: $23.02 million

Average price of homes sold
Crawford County
Jan.-Feb. 2009: $119,852
Jan.-Feb. 2008: $123,708

Franklin County
Jan.-Feb. 2009: $65,867
Jan.-Feb. 2008: $84,250

Sebastian County
Jan.-Feb. 2009: $122,596
Jan.-Feb. 2008: $129,336

The top five Arkansas counties in terms of number of homes sold Jan.-Feb. 2009 are:
Pulaski County (475, down 23.01% from the same period in 2008)
Benton County (332, down 17.21% from the same period in 2008)
Washington County (203, down 26.18% from the same period in 2008)
Garland County (156, down 14.29% from the same period in 2008)
Faulkner County (153, down 12.57% from the same period in 2008)