Rusty Armstrong

The September report on sold homes and number of active listings shows a market that continures to be basicly flat since the end of April of this year. For the six month period ending in September the number of solds decrease by 1.1% and the number of listings on the market were also down 1.64%. The absorption rate has been running between 6.8 months and 6.2 months each month even though solds have gone up and down, so have the number of listings. What may tell more is comparing September number of 2010 with September 2009. The number of solds are down 4.1% and the number of homes on the market are up 14.3% when compared to 2009. The absorption rate at this time last year was 5.4 months and now is it 6.2 months. Even though it is not a drastic change it is a more competitive market to be selling a home today than last year in Little Rock. There are still homes selling but the competitiveness of the market will keep prices at best flat in most price ranges and areas.

August home sales, inventory and days on market moved the six month trends up in all three categories. Listings on the market up up the most at 1.73% and continued a upward trend every month since April of this year. Home sales was almost flat being up only .99%. This is the smallest growth in the sale trend since April. West Pulaski County (area 17) which includes Chenal continues to improve but being the area with the longest Absorption Rate it still remains one of the weakest areas for sales to inventory. These numbers compared to last August are up in all three areas from last August numbers. The Average Days on Market are up from 86 to 94 days. All in all not all that much change. Buyers continued to look but there does not seem to be an urgency in the market for them to make a buying decision and until either buyer confidence improves or some factor in the market changes the market will probably remain with these small changes.

July home sale market numbers for Little Rock continued on the same course as June trends. Closings for July were up by 6.25% but properties for sale in creased by 2.14%. June saw increase in both numbers but July was a much bigger increase in closings and much smaller increase in the number of properties for sale. Both very positive for the market. The supply of homes on market remains just over a six month supply which has remained at that level since April. With the extream heat in July and a historicly slower month it will be interesting to see if the July sales can maintain this level of closings by the end of August.

With a good inventory of properties for sale and historicly low interest rates it would seem the be a great market for buyers. However there is no urgency for buyers to make a decision therefore they a looking a lot but do not seem to want to make a decision. The uncertain economy and no urgency are big factors thar seem to be keeping the home market from really getting on a roll.

After just under a 14% increase in sold homes in May, June's only showed a 3.1% increase. Obviously a result of a slowing of closings after the Tax
Credit ending of contract time at the end of May. The number of listings on the market also increase in both months but instead of slowing, the number of listing increase. May had a 3.1 % increase and June had a 7.5% increase in properties on the market. These figures lead to a decrease of days on the market in May to 93 average days on market, but lost half that with an increase in the average days on market to 97 days at the end of June. Even though interest rates remain in the 4.5% range there seems to be no real urgency for buyers to make a decision in the market. Look for the market to become more competitive with more listings and about the same or less sales. It is even more important for homes for sale to be priced right, be in good condition and show well to sale. These properties seem to sale quickly and all others set around.

April was a good month for home sale numbers and market trends in the Little Rock area. The number of homes that sold was up 3.3% over March six month trends and the number of listings on the market remain all most unchanged. Average Days on Market trended down by almost 3% to 102 days for all areas with over half of the market areas being at or under 90 days on market. This is a very positive move since the average days on market has been going up for the last few months. A lot of things probably contributed to this positive movement. Spring time sales period, tax credits, and great interest rates being the main ones. The tax credits are now gone but the other two factors remain in place and the economy and consumers confidence seems to be moving in a positive direction.

April of 2009 was first time this report was published on Absorption Rate and sales over a 6 month period to see how the market was trending. A year later the market has shown improvement in most areas. The number of sold homes in the previous 6 months has gone up by 18% and the number of listings on the market has only gone up .5%. The average days on the market at the end of April 2009 was 115 and this April ended with 102 average days to market. The market is improving even though it may be slow at times, but that is probably how it will continue as a slow improvement over the balance of this year. It will be interesting to see how it goes.