Little Rock HHome Sales Numbers Continues to Increase and Absorption Rate Trends Down

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.