Area home sales see big October gains

October saw huge gains in the number of homes sold in Crawford and Sebastian counties, but a Realtor suggests the regional real estate market is not yet in full recovery.

Crawford County recorded 50 home sales in October, up 35% over October 2008. Sebastian County had 122 home sales, up 30% over October 2008. The gains in homes sold did not come at the expense of home prices, with the rolling 12-month home price in Crawford County up 2% in October, and the price in Sebastian County flat in October compared to the September rate.

“The River Valley’s recent trend of exceeding 2008’s sales performance continued in October. While this is great news, and some might claim the region’s real estate market is recovering, I would urge caution because the bulk of the sales in the River Valley for September and October were of homes $150,000 and under, which have always been a selling main-stay in the region,” Ernie Schimmelman, a Realtor with King Realty Group said in his monthly report.

Schimmelman’s October report follows his September report that was the first positive indicator for area home sales in many months. For the first seven months of the year, figures from the Arkansas Realtors Association show that Crawford County home sales (323) declined 14% compared to the same period in 2008, and Sebastian County home sales (720) were down 13.5%. The ARA is expected to release its September report by mid November.

While the October report marks two consecutive months of strong area home sales, Schimmelman reiterated that a full recovery requires improving sales in homes priced above $150,000

“Strong consideration must be given to the inventory that remains of properties above $150,000 that requires a minimum of 11 months on-average to sell. Once we see improving trends for these properties we can start to speak in terms of market recovery,” Schimmelman noted.

Homes priced between $201,000 and $250,000 spend an average of 179 days on the market in the two-county area. With 119 homes for sale in that price range, Schimmelman estimates 12.1 months of inventory in that price range.

Homes priced between $251,000 and $300,000 spend an average of 270 days on the market in the two-county area. With 88 homes for sale in that price range, Schimmelman estimates 20.1 months of inventory in that price range.

Area homebuyers have more to choose from. The number of homes on the market has increased almost 18.5% from 1,011 in May to 1,199 in September.

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

Key figures:
• Crawford County (October)
Homes listed: 340
Homes sold, October 2009: 50
Homes sold, October 2008: 37
Mean price, October (rolling 12-month rate): $121,405
Homes listed $0 to $200,000: 263
Homes listed $201,000 to $500,000: 75
Homes listed $501,000 and up: 2

• Sebastian County (October)
Homes listed: 859
Homes sold, October 2009: 122
Homes sold, October 2008: 94
Mean price, October (rolling 12-month rate): $127,330
Homes listed $0 to $200,000: 605
Homes listed $201,000 to $500,000: 215
Homes listed $501,000 and up: 39