It’s hard to believe but the average price of a home sold in July in Northwest Arkansas was $178,103. That’s up 29.5% from it’s low only 5 months ago! After three months of sustained positive growth in home prices, absorption rates coming back into line, and strong pending sales I’d have to say Northwest Arkansas is recovering from it’s milder-than-the-national-average housing crisis.
Northwest Arkansas Home Prices and Housing Market Report
Pending sales are back up slightly from last month’s 4 month low of 428. The number of sold properties is steady with 484 in July and a sold price per foot of $87.65, up $12 per foot since February! The number of listed properties remains very steady around 5400 units. Now, on to the really big news…
Average Home Prices for Sold Properties in Northwest Arkansas
I’d be doing a little jig as a homeowner right now. Three consecutive months of increased home values have brought us back to the same price level as Northwest Arkansas had just about a year ago in July-August, 2008. We’re talking about sustained price increases for sold properties. Nothing but good news here. As you’re staring at the graph try not to salivate all over your keyboard.
June Numbers by City
Strong sales from each major city in Northwest Arkansas occurred in July. While foreclosure and distressed properties are still impacting average sale prices of homes it certainly isn’t as big an issue as we saw six months ago. One thing I did notice was that Rogers had the lowest SP/LP or Sale Price to List Price ratio. This means that, on average, people are buying homes for about 92.5% of their list price in Rogers. Compare that to Bella Vista where sellers are raking in 98.29% of their list price…
Northwest Arkansas Pendings, Solds, and Expireds by Month for 2009
Not too much news here except that pending sales are up for next month… just meaning that we should see good sales for August.
Current Inventories in Each Northwest Arkansas City by Month
Inventories remain remarkably stable across the board in each major city of NWA. This give us good data for absorption rates coming up in just a minute.
Average Days on Market By City
Days on Market tend to follow SP/LP ratios so it’s no surprise to see Rogers with a high DOM. It’s fairly normal to see DOM rise a bit in the dog days of summertime.
Absorption Rates by Price Range
Months of inventory on the market continue to drop as sales remain strong and inventories stay constant. Over the next few months I expect the low-end to level off and maybe even creep back up a bit to ten months or so. The higher price ranges should continue to fall as outstanding inventories continue to be sold.
In summary… things are really looking strong for the housing market in Northwest Arkansas. I think now is as good a time to list your home as there has been in the last year. I think now is also a good time to buy a home, even with interest rates above their low a couple of months ago. This may be the perfect time to get an incredible deal on a home and still sell your existing home for a good price. First-time Homebuyers… don’t forget about the $8,000 housing tax credit available to you. It’s a great program that is due to be phased out by the end of the year so ‘get while the gett’in’s good.’
That’s about it for the July 2009 Home Prices and Market Report for Northwest Arkansas. If you would like a copy of the report in an easy to read PDF because you like paper or because you want to keep it for your records you’ll have to contact me and I’ll send you one by email.
Thanks for coming back and reading if you are a regular informed homeowner, and welcome if you are a newbie to the report. You can always find all of my market reports in the market conditions category of my site. Have a great month and enjoy the rest of the summer.