Regional Home Sales Trend Downward
Last updated Thursday, March 13, 2008 5:15 PM CDT in Business
By Kim Souza
The Morning News
January home sales in Benton and Washington counties fell more than 35 percent from the year-ago period, pushing the state's average monthly to a three-year low, according to the Arkansas Realtors Report released Thursday.
Sales receipts were down more than $20 million in the two-county area, giving 2008 a slow start and local real estate agents a cumulative $1.2 million less in their pockets.
Across the state, the total number of home sales closed in January fell 26.5 percent from a year-ago. The real estate industry lost out on $76 million in sales when compared to the prior-year period, costing agents $4.5 million in commissions across the state.
This is a direct loss and contributes to lower overall economic activity in the region and state because those whose incomes have been reduced will spend less money, said Kathy Deck, director of the Center for Economic Research at the University of Arkansas.
She said the cyclical downturn, which began with new home builders, has now affected many other businesses including real estate agents, title companies, inspectors, appraisers and mortgage brokers.
The January sales numbers represent homes that were sold between November and mid December of last year, as there is usually a 30 to 45-day lag time between contract acceptance and closing.
Paul Bynum, market analyst with Coldwell Banker Faucette Real Estate in Fayetteville, said pending sales give a more current view of market activity. In January, he reports 408 pending sales in the two counties. The pending sales will likely be reflected in the March Realtors report.
He said February pending sales totaled 525 contracts, an indication that market activity is picking up. Roughly 95 percent of pending sales close, he said.
Linda Pinalto, agent with Crye Leike Realty, agreed that November and December were rough months due in part to consumers wary of assuming more debt. In January and February she reports more interest by consumers and sales trending upward from the seasonal lows hit last fall.
Median days on market in March for both new and existing homes is 91 days, Bynum said, up from 76 days in January. This indicates the market still has a significant excess of sellers, relative to the number of buyers.
The average Washington County home price for sales closed in January were $198,813, up more than 20 percent from a year ago. The average home price in Benton County in January was $197,609, up more than 10 percent. The double-digit increases in both counties are due in part to fewer overall sales skewed by a few large home purchases.
The median home sales price is a more accurate image of actual home prices. The median price represents the middle, with half of the homes selling for more and half selling for less.
Existing home median sales prices were $135,000 in January, while new construction brought a median price of $175,000, according to Bynum.
By The Numbers
Top 5 Counties - Number of Homes Sold
County Jan. 2008 Jan. 2007 % Change
Pulaski 261 316 -17.41
Benton 185 278 -33.45
Washington 105 171 -38.60
Saline 85 121 -29.75
Faulkner 76 94 -19.15
Statewide 1,470 2.002 -26.57
Top 5 Counties - Value of Homes Sold
County Jan. 2008 Jan. 2007 % Change
Pulaski $43.89 million $49.86 million -11.98
Benton $36.55 million $49.90 million -26.75
Washington $20.87 million $28.19 million -25.95
Saline $14.06 million $20.10 million -30.05
Faulkner $10.93 million $14.32 million -23.65
Statewide $219.16 million $295.4 million -25.81
Top 5 Counties - Highest Average Price for the Year*
County Jan. 2008 Jan. 2007 % Change
Washington $198,813 $164,867 20.59
Benton $197,609 $182,677 10.07
Pulaski $168,183 $157,812 6.57
Saline $165,490 $166,194 -0.42
Garland $165,433 $177,769 -6.94
Statewide $149,091 $147,554 1.04
* Comparisons made with counties recording 10 or more home sales per month.
Source: Arkansas Realtors Association
Reader Comments (No comments posted.)
The following comments are provided by readers and are the sole responsibility of their authors. The Morning News does not review comments before their publication, nor do we guarantee their accuracy. By publishing a comment here you agree to abide by our comment policy. If you see a comment that violates our policy, please notify the web editor.
Not already registered?
