story by Kim Souza
ksouza@thecitywire.com
Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire, and sponsored by Arvest Bank. Supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.
Investors seeking bargain prices in an improving real estate market helped push home sales higher in the Fort Smith metro area in January. Stronger consumer confidence and temperate weather also meant more sales for agents.
There were 83 homes sold in Sebastian County in January, with 62 of those in Fort Smith, according to Kevin King, broker with Weichert King Realty Group. He said 11 of those 62 sales were priced below $75,000, an indication that investors are still active in the local market.
MountData.com reports the 83 homes sold in Sebastian County in January were valued at $10.472 million, which was a 10.6% gain in units sold and 12.3% more volume over the same month last year. Unit sales are up 59% from the same month in 2013 while total sales volume rose 65%.
King said January weather was better than predicted this year which does tend to positively impact sales. But equally important, King attributes the better sales to improving consumer confidence which is at its highest level in several years.
“Our listings were up 30% in January, which an indication there is more confidence about the local market. There are 580 listings in Fort Smith, out of the total 820 listings for Sebastian County.
The median prices for homes sold in Sebastian County last month were $111,225, or $67 per square foot, according to MountData.com. The average sales price was $126,170, up slightly from $124,247 reported a year ago.
In Fort Smith, King said the average home price was $128,300 in January, noting that more activity at the low end of the market reduced the average price. He said the average price for homes sold by his office last month was $185,000, which was one of their better months.
CRAWFORD COUNTY
Crawford Country total home sales in January were valued at $3.656 million, down 5.9% from the same month last year. Agents sold 35 homes, which was 3 less than were sold in January 2014, according to MountData.com.
The median home price in Crawford County was $104,950, or $65 per square foot. This was up 17.2% from the $89,500 median price reported in the year ago period. Federal Rural Development loans which allow for 100% financing have been a contributor to the appeal for Crawford County among first-time homebuyers.
Van Buren, the largest city in Crawford County, was among those eliminated from Rural Development loans as of October 2014. King said this will likely mean fewer sales for Van Buren going forward by those homebuyers needing the 100% financing.
Mortgage bankers said interest rates are still low and the recent reduction in mortgage premium insurance is making home affordability possible for those who can muster the 3% downpayment, which can be a gift from family.
JANUARY DATA
Home Sales (January)
Sebastian County
2015: 83
2014: 75
2013: 52
Crawford County
2015: 35
2014: 38
2013: 27
Home Prices (January)
Sebastian County - average sales price
2015: $126,170
2014: $124,247
2013: $122,045
Crawford County - average sales price
2015: $104,483
2014: $102,359
2013: $100,394
Home Sales total value (January)
Sebastian County
2015: $10.472 million
2014: $9.318 million
2013: $6.346 million
Crawford County
2015: $3.656 million
2014: $3.889 million
2013: $2.71 million