Little Rock, AR

The Arkansas REALTORS Association report of September 14th shows that the average list price on homes continues to slide slightly and the number of homes listed has increased over last month but are still below the highs reached this year. Here in Central Arkansas the list price number has remained level for a few months and so has the listing inventory. In their post about this report the REALTORS point out the importance the First Time Buyer Tax Credit has had on these numbers and the market. The most active price range has been around $150,000 and below, which is the prime first time buyer market. Our reports on Absorption Rates in the Little Rock area shows positive trends in the Little Rock area for average days on the market.

The Market Absorption Rate continues to move down at the end of August in almost all areas. Out of the eleven areas that are followed in the Little Rock area all but 4 have a listing inventory of under six months and a average days on market of 90 days are less. West Pulaski county, which includes the Chenal area, remains the area with the biggest inventory but this area may have improved the most over the last few months. It has gone from an absorption rate of over a year to now a little under ten months. These trends have been slow but consistent positive trends each month. Low rates, first time buyer tax credit and good value in homes continue to push these trends.

The trend of increase sales in the Little Rock area in a 6 month period continues for the second month at the end of July. Sales were up 17% over the 6 month period ending in June. Sales were up in every market area. The number of properties for sale also continued to increase but only by a 7% rate which is much smaller than the 30% increase last month. The Chenal area which early in this year was very slow and had a very high absorption rate of over a year has improved over the last few months. It now has an absorption rate of just under 10 months. Over half of the areas have an absorption rate of at or under 6 months. This means an average days on the market of around 90 day, which is not a bad market at all. In fact only west Pulaski County, Chenal, and Jacksonville areas have an average days on the marke of over 120 days.

Hopefully we will see these trends continue. Positives continue to be low interest rates on conforming loan, first time buyer tax credit, and a better market of jumbo loans. With these in place and no unforeseen changes these trends should continue.

Last week, The National Association of REALTORS® reported that existing home sales - which include single-family, townhomes, condominiums and co-ops - increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June.

This is third consecutive month that NAR has reported an increase in existing home sales. Lawrence Yun, NAR's chief economist, added that "We expect a gradual uptrend in sales to continue due to tax-credit incentives and historically high affordability conditions."

Signs of an improving market are all over the place. It looks like we hit bottom and are on the way back up. Sales are improving on the Little Rock scene as well. There has never been a better time to buy a new home.

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