Rusty Armstrong

The market for homes selling in Little Rock most active areas show increases in the number of sales for 6 months in all areas that are followed except for the Jacksonville which was down. The areas of Little Rock without Cabot and Jacksonville increased by 11%. There was also an increase of number of listings that are on the market for sale, up 31%. So even though sales were up the Absorption Rate and Average Days on the market increased in all areas accept for the Chenal and west Pulaski County area which decrease. Even with this decrease this area remains with the highest Absorption Rate but still good news for that market.

What does this mean for buyers and sellers in our area? I think it shows that buyers are becoming more confident and are becoming more active. The number of homes on the market increasing is because of a lot of factors probably. Seller's seeing more sales are more confident to put homes on market, employment changes in our market, and a normal time of year when listings increase are all factors that may have contributed to the increase in listings. The trend had been down for active listings till this month. If this is a trend or just a one month adjustment will need to be followed at the end of July.

Absorption Rate Through June 2009

Yes, many homes are selling fast when they hit the market here in Little Rock, but a lot of homes are taking much longer to sell. This gap between those that are selling fast and the slow sellers has expanded in this market. The residential market has become a competition of price and condition that you either win fast or lose. The homes that are priced fairly and in good condition are selling in under 30 days most of the time. The homes that are overpriced for this market either because of the condition or a seller that will not meet what the market expects for price or either sitting till the price is right or not selling at all. Sellers must realize that buyers set the market for what a house is worth. The seller needing a certain amount or just wanting a certain amount does not effect what buyers will pay for a property. Buyers understand looking at what comparable homes have sold for to decide which homes are the best values. These facts make it very important that sellers get good advice on where other homes are selling for and on getting the home ready to market. Good advice can effect how quickly the home can be sold and even more importantly the bottom line.

In these reports we have been looking at the Absorption rate on home sales by area. Today I looked at how sales were doing by price range. The most active price range is below $300,000. First Time Buyer Tax Credit, FHA and VA loan limits contribute to making these price ranges sell well. Within these price homes the most activity in in the $100,000 to $200,000 price range. This price range only has just under a 6 month supply and an average days on market of under ninety days. In prices over $300,000 there is over a year supply of homes on the market at the present rate of sales. For homes over $750,000 there is a 21 month supply of homes for sale. As the trends by area have shown the areas with the more expensive homes for sale are the slowest moving markets. In these price ranges there are sales being made but not at a fast enough rate maintain prices. We are still seeing that homes priced the best and in the best condition are selling quickly, all others are setting on the market for a while. What could help this upper price range the most is a better mortgage loan rate and availability for these homes that are above the conforming loan value of $415,000 here in Arkansas.

This monthly report has been tracking the home sales trends in the most active areas of Little Rock, North Little Rock and Maumelle. Each month it looks at the number of sold properties in the past 6 months and using that sales rate to see how many months it would take to sale all the listed homes at this sales rate. Using these figures it show a more accurate average days of market for home sales. Over the last few months the trends have shown a wide range of sales rates in our market, but trends have been slightly positive to unchanged. The May report shows very positive trends in both number of sold homes incresing and a decrease in the number of homes on the market in all areas the in the report. The area with the lowest absorption rate and average days on the market continues to be the area of Little Rock from University Avenue to Mississippi that is north of I-430. This area has only a 4.5 month supply of homes on the market which makes an average days on the market of 67 days. Maumelle, western part of North Little Rock, and Sherwood are all under 5 months supply of homes on the market. Chenal and western Pulaski County continue to be the area with the highest absorption rate with just under a 12 month supply and an average days on market of 176 days. This area had the biggest positive move in May improving from a 15.5 months supply of homes and 232 average days on market. Even with these positive numbers it remains a very competitive market to selling a home. The properties in the best condition and priced the best are selling very fast but thoes not are staying on the market for a long period of time. It still remains a buyers market in most price ranges excep for homes priced below $200,000. Buyers in this price range have been very active because of the First Time Buyer Tax Credit, FHA and VA loans, and low interest rates.

Homes continue to take less time to sale in the most active areas of Little Rock. At the end of February the sales rate to sale all homes on the market was 8.5 months and an average market time of 126 days. At the end of April these numbers have gone down to 7.7 months and a average market time of 115 days. The areas that continue to be the best markets are Little Rock from University to Mississippi, Maumelle, North Little Rock west of John F Kennedy Boulevard, and Sherwood. These area have an average days on the market of 81 to 96 days. The most competitive area to sale homes continues to be Chenal and western Pulaski County with an average days on market of 232 days. That is decrease form 255 at the end of February.Buying activity has increase, especially in with first time home buyers which have been motivated by the First Time Buyer Tax Credit and low interest rates. The areas that are moving the best are the areas that have price ranges that appeal to first time buyers. The area that are moving slower are areas with the more expensive properties. Housing prices usually remain stable with the absorption rate is under 9 months and most of the area are at 10 months are below. Overall sales numbers remain about the same while number of homes have decreased over the last 2 months. Hopefully these trends will continue over the next few months.

The Arkansas REALTORS Association has published the sales numbers for the state along with average sales prices in all areas of the state. A good analysis of those numbers can be found at ShootingStright.com.