Little Rock, AR

After many months trending in a positive direction for the Little Rock home sale market, for the second month in a row it has reversed and moved back. In fact a the end of January the number of sold homes was down almost 20% as compared to the end of December 2009. From the end of November sold homes for the target areas are down about 26% as compared to the end of November. As sales go down, inventories of homes for sale increased, up about 6% since the last month. These numbers result in the Absorption Rate ( time for all homes to sale at the present sales rate per month) has increased back up to over a 6 month supply and increases the Average Days on Market to 97 days.

There are some factors which should be taken into consideration. After the holiday season it is normal for it to take a while for the increase activity in the to show up in these numbers. Also even though the First Time Buyer Tax Credit was extended till the end of April, there seems to be a lull in its effect after November 30 the original ending date. Another factor that may have contributed to the slower sales is the bad weather in the form of rain, cold and freezing precipitation has not made it conducive for home sales activity. It will remain to be seen if this increase activity and the continued tax credit programs will put the market back on the positive tend it was on for many months in Little Rock. All other factors such as interest rates and level home prices seem to be the same to encourage a positive tend in the market. It will interesting to see in the coming months.

After months of a positive trend in the absorption rate of homes selling in the Little Rock area, the numbers show a slowing market at the end of December. All areas showed and decrease in number of sold homes and an increase in properties for sale on the market. Sold homes were down 6% and homes on the market increase by 8%. Looking at the numbers by price range. All price ranges slowed but the tend of the market below $400,000 being better than above that number continued to show a bigger gap. This change in the trend was to be some what expected since the holiday season is always the slowest time of the year for home sales. The absorption rate and days on market are still better than they were at the end of the first quarter of 2009. Most factors such as low interest rates, home buyer tax credits, and a good selection are still in place which helped to create the positive trend for most on 2009. Therefore it should be expected that the better sales will be seen again in January and the coming months.

What does this mean if you are thinking about selling your home or have it on the market at this time? It shows that it is till a very competitive market to get a home sold. The positive news is that there are still a lot of homes selling but you must be priced right,have it in excellent condition, and staged to show to sell. What we are seeing that homes meeting those conditions are selling way below average and those that are not take a long time to sale or do not sale at all.

The absorption rate and average days on the market improved in all areas except west Pulaski County and Chenal, along with Otter Creek. Of the eleven areas that are look at all but three are at or under a 6 month absorption rate and at or under 90 days average on the market.Little Rock west of I-430 and Maumelle were the best markets with under a 60 day average market time.

Looking a the market by price range continues to show homes priced under $400,000 to improve and the market for homes above $500,000 to be getting slower. Both these trends have remained the same over the last few months. Improved financing terms in the Jumbo loans would greatly help this market

The residential sales trends for the Little Rock, Arkansas area continue to move every slowly in a positive direction in most all areas at the end September. Homes that are in good condition and price right are selling in a reasonable time.. Supply continues to move slowly down ward and sales move upward slowly which has been a trend over the last few months.The absorption rate remains under six months for the total area and of the eleven areas monitored all but four had an average days on market of under 90 days. The areas with the longest absorption rate continue to be West Pulaski County and the Chenal area, along with the Jacksonville are both with a eight to nine month supply of homes on the market. Both these areas continue to see improvement on earlier months numbers.

Looking at how the market is doing by price range shows two different markets. In prices from $100,000 to $400,000 absorption rate is under five months and above $400,000 it is just under 14 months. Some factors causing this gap are financing for loans over $415,000 is getting better but is still at a higher rate and more difficult to get than loans under that amount. First Time Buyer Tax Credit continues to help make sales good below the $250,000. Time will tell how the market is affected if the tax credit is not extended past the November 30 end date.

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