Arkansas Realtors Association reports gains in housing market

Finally.

September home sales in Crawford, Franklin and Sebastian counties totaled 174, up 1.7% over September 2008 sales, according to Monday’s (Nov. 16) report from the Arkansas Realtors Association.

It marks the first time this year the totals for the three counties exceeded the comparative 2008 period. (There is a discrepancy between the ARA report and the September monthly King Realty Group report provided to The City Wire by Realtor Ernie Schimmelman. In the Schimmelman report, Crawford saw a September sales gain of 56% — compared to 31% reported by the ARA — and Sebastian County had a September sales gain of 20% — compared to a loss of 10% in the ARA report.)

The ARA credited the improving September activity to the federal first-time homebuyer credit, and said the credit is leading to anecdotal reports of better October sales.

“Throughout Arkansas, there were 2,298 homes sold in September compared to 2,092 sales in the same month a year ago. September marked only the second month out of the past 44 where sales have been ahead in month-to-month comparison. The last time we saw a gain in sales was in July,” the ARA noted in its report.

FORT SMITH REGION
The year-to-date numbers for the Fort Smith area remain depressed compared to 2008. There were 1,440 homes sold in Crawford, Franklin and Sebastian counties during the first nine months of 2009, a decline of 13.14% over the same period in 2008.

The nine-month trend is best noted in this comparison of homes sold in Crawford, Franklin and Sebastian counties during the respective periods.
Jan.-Sept. 2008: compared to the same period in 2008: -13.14%
Jan.-Aug. 2009: compared to the same period in 2008: -14.8%
Jan.-July 2009 compared to the same period in 2008: -14.3%
Jan.-June 2009 compared to the same period in 2008: -13.37%
Jan.-May 2009 compared to the same period in 2008: -11.6%
Jan.-Apr. 2009 compared to the same period in 2008: -13.1%
Jan.-Mar. 2009 compared to the same period in 2008: -22%

During the January to September period, Crawford County home sales (445) declined 12.85% compared to the same period in 2008; Franklin County home sales (50) were down 20.7%; and Sebastian County home sales (945) were down 12.28%.

The combined value of the homes sold in the first nine months of 2009 in the three regional counties was $177.148 million, down 16.8% from the $212.958 million value recorded during the same period in 2008. Sebastian County has recorded $121.13 million in home sales in the first nine months of 2009, down 17.1% from the same period in 2008.

PRICE DECLINES
The regional numbers clearly show that the number of homes sold is gaining much faster than the value of homes sold, meaning that more lower-priced homes are sold than in 2009. The numbers show a continued decline in the average price of homes being sold in the region. Between January and September, the average price of new and existing homes sold in Crawford County declined 5.4% ($118,690 in September 2009), and down 2.89% in Sebastian County ($131,994).

In his October report, Schimmelman said a true market recovery will require improved sales in higher-priced homes.

“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.

The numbers show a continued decline in the average price of homes being sold in the region. Between January and September, the average price of new and existing homes sold in Crawford County declined 5.4% ($118,690 in September 2009), and down 2.89% in Sebastian County ($131,994).

ARKANSAS NOTES
Statewide, there were 2,298 homes sold during September, up 9.85% from September 2008. For the year, homes sold statewide total 18,426, down 8.47% from the same period in 2008. The value of homes sold statewide during the first nine months of 2009 is $2.668 billion, down 12.31% from the same period in 2008.

Also, the overbuilt housing market in Northwest Arkansas is stabilizing. Earlier in 2009, the housing markets in Benton and Washington counties were seeing double digit declines in home sales and home values.

But as of September, the region has found some stability as it works through a large inventory of new homes. Benton County has posted 2,586 home sales between January and September, down just 2.53% from the same period in 2008. Washington County has sold 1,606 for the year, up — yes, up — 0.25% from the same period in 2008. The value of the homes sold for the first nine months is down just 13.13% in Benton County and down 8.89% in Washington County. (By the way, the value declines are less than those seen in Crawford and Sebastian counties.)

REAL ESTATE STATS
• Number of homes sold
Crawford County
Jan.-Sept. 2009: 445
Jan.-Sept. 2008: 494

Franklin County
Jan.-Sept. 2009: 50
Jan.-Sept. 2008: 57

Sebastian County
Jan.-Sept. 2009: 945
Jan.-Sept. 2008: 1,107

• Value of homes sold
Crawford County
Jan.-Sept. 2009: $52.81 million
Jan.-Sept. 2008: $61.98 million

Franklin County
Jan.-Sept. 2009: $3.2 million
Jan.-Sept. 2008: $4.86 million

Sebastian County
Jan.-Sept. 2009: $121.13 million
Jan.-Sept. 2008: $146.11 million

• Average price of homes sold
Crawford County
Jan.-Sept. 2009: $118,690
Jan.-Sept. 2008: $125,468

Franklin County
Jan.-Sept. 2009: $64,006
Jan.-Sept. 2008: $85,267

Sebastian County
Jan.-Sept. 2009: $128,181
Jan.-Sept. 2008: $131,994

The top five Arkansas counties in terms of number of homes sold Jan.-Sept. 2009 are:
Pulaski County (3,257, down 9.12% from the same period in 2008)
Benton County (2,586, down 2.53% from the same period in 2008)
Washington County (1,606, up 0.25% from the same period in 2008)
Saline County (1,064, down 5.34% from the same period in 2008)
Faulkner County (1,005, down 4.47% from the same period in 2008)