Now that I’ve finally gotten around to putting together the report for August it’s nearly time for the September report. No worries though. I wasn’t putting it off due to terrible information or some statistic taking a nose dive, I’ve just been busy. Enough excuses. Things are still looking very promising overall as we go into the slow months. Here is the Northwest Arkansas Residential Home Prices and Real Estate Market Report for August 2009…
Northwest Arkansas Home Prices and Housing Market Report
Numbers remain fairly steady month over month in Benton and Washington counties. You can see from the table above that we had 518 sales in Northwest Arkansas in August. Sales are on a good steady pace since back in May. We may even see sales stay steady through the winter months. Typically you’ll see a 20% drop or so in home sales in wintertime but we have a rebounding market so they may stay the same. The average sales price slipped a bit from last month but I believe that is just a monthly price fluctuation and not any kind of indicator home prices are not still rising.
Average Home Prices for Sold Properties in Northwest Arkansas
As I said above… still all good news here with the drop in sold prices this month only because of a monthly market fluctuation, and not some insidious indicator of a drop in home prices. I expect prices to stay near current levels through the winter with no large appreciation at least until spring time. There is another wave of foreclosures coming in 2010 that will probably negatively affect home prices but if we can keep inventories down until then, it will likely not be nearly as bad as we have seen values plummet over the last two years. There will be more on the coming foreclosures later.
June Numbers by City
Good overall sales for August. It’s amazing how low Bentonville’s DOM is. I don’t think you could say that for the general population of homes over, say, $250,000 though. Everything by city is fairly self explanatory this month. If you do have further questions about the report, please feel free to contact me by phone, email, twitter, or facebook.
Northwest Arkansas Pendings, Solds, and Expireds by Month for 2009
We saw the number of sold properties for August increase slightly while many properties expired over the past month. Probably due to the listing rush this past spring. You’ll see a higher number of expired over the next couple of months as many of those properties expire, mostly because they were overpriced to begin with.
Current Inventories in Each Northwest Arkansas City by Month
Inventories remain pretty stable again this month. Not bad, not good necessarily, but as long as sales continue to stay the same or increase, prices will rise. Looking back, the dip in March in inventories may have been some sort of mistake on my part when I researched that data. I’ll go back and find out for sure when I do the year-end numbers in a few months.
Average Days on Market By City
Not too much to say here… find your city and you’ll have a vague idea of how long your home might be on the market if it is priced at or within 5% of market value. A better idea is to see how long comparable properties have been on the market because DOM is very subjective to the price range the property is in. High end properties have fewer buyers which in turn makes them sit on the market longer than a home in the $150,000 range.
Absorption Rates by Price Range
From last month’s report:
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.
The majority of the market’s (nearly 2300 units) absorption rate is down to nearly 7 months, the lowest it has been in over a year. It’s certainly not time to start calling for a seller’s market yet but a drop below 4 months will mean just that.
Well that’s it for the August 2009 Home Prices and Real Estate 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 fall, my favorite time of year in Northwest Arkansas… Go Hogs!