Perspective needed to analyze local housing market

The health of the Fort Smith regional housing market is a matter of perspective, according to Ernie Schimmelman, a Realtor with Fort Smith-based King Realty Group.

A big picture view, however, paints a clear picture that the market continues to be dominated by the buying and selling of homes priced below $200,000. In March, 70.2% of homes listed in Sebastian County and 72.2% of homes listed in Crawford County were priced below $200,000.

“Every day when people see from my name tag that I’m a Realtor, they ask, ‘How’s the real estate market?’ My reply is always the same, ‘It depends.’” Schimmelman noted in his recently released King Realty Group Market Report for March. “If you own a home in the River Valley that has a market value under $150,000 you have an excellent opportunity to sell your property in less than 5 months.”

But those wishing to sell homes priced above $300,000 are selling into a buyer’s market, which means patience and a willingness to be flexible with the price.

“If you’re patient and willing to commit to a longer listing period, and willing to negotiate,
there’s a good chance of capitalizing on the attractive mortgage rates for those with decent credit ratings who are now shopping,” Schimmelman said of homeowners with higher-priced homes.

Patience will be a challenge for those in Crawford County hoping to sell a home in the $401,000 to $500,000 range. That price bracket has 3.45 years (83 months) of inventory. The biggest inventory bracket in Sebastian County is in the $651,000 to $800,000, with 35 months of inventory.

The Fort Smith/Van Buren market, while not getting hit as hard as Northwest Arkansas and central Arkansas markets, is off to a rough start in 2009. 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, an Arkansas Realtors Association report released April 1 noted.

Key facts:
• Crawford County
Homes listed: 306
Homes sold, March 2009: 35
Homes sold, March 2008: 57
Mean price, March (rolling 12-month rate): $124,344
Homes listed $0 to $200,000: 221
Homes listed $201,000 to $500,000: 83
Homes listed $501,000 and up: 2

• Sebastian County
Homes listed: 706
Homes sold, March 2009: 79
Homes sold, March 2008: 107
Mean price, March (rolling 12-month rate): $126,817
Homes listed $0 to $200,000: 496
Homes listed $201,000 to $500,000: 175
Homes listed $501,000 and up: 35

The King Realty Market Group Report (as prepared by Realtor Ernie Schimmelman)

• Crawford County (March 2009 activity)
$101,000-$150,000:
79 listings
14.75 sales per month (rolling 12-month average)
Sales average 97% of list price
4.4 months of inventory
149, average days-on-market

$151,000-$200,000:
70 listings
7.08 sales per month (rolling 12-month average)
Sales average 96% of list price
8.9 months of inventory
67, average days-on-market

$201,000-$250,000:
30 listings
2.92 sales per month (rolling 12-month average)
Sales average 98% of list price
9.3 months of inventory
319, average days-on-market

$251,000-$300,000:
25 listings
1.33 sales per month (rolling 12-month average)
Sales average 95% of list price
17.8 months of inventory
175, average days-on-market

• Sebastian County (March 2009 activity)
$101,000-$150,000:
138 listings
28.92 sales per month (rolling 12-month average)
Sales average 98% of list price
3.8 months of inventory
141, average days-on-market

$151,000-$200,000:
123 listings
15 sales per month (rolling 12-month average)
Sales average 97% of list price
7.2 months of inventory
101, average days-on-market

$201,000-$250,000:
63 listings
7.42 sales per month (rolling 12-month average)
Sales average 94% of list price
7.5 months of inventory
164, average days-on-market

$251,000-$300,000:
62 listings
3.17 sales per month (rolling 12-month average)
Sales average 94% of list price
18.6 months of inventory
443, average days-on-market

$301,000-$400,000:
36 listings
2.67 sales per month (rolling 12-month average)
Sales average 98% of list price
12.5 months of inventory
216, average days-on-market

$401,000-$500,000:
14 listings
0.92 sales per month (rolling 12-month average)
Sales average 95% of list price
14.3 months of inventory
205, average days-on-market