Arkansas Housing Market Showing Signs of Improvement

Arkansas home sales fell slightly more than 2 percent in January compared to the same month a year ago, but that decline was less severe than in previous months, the Arkansas Realtors Association reported Monday.

In December 2006, sales fell 14.8 percent over the same month in 2005.

Combined with increased sales, the average price of a home in the Natural State fell less than 0.5 percent in January, reflecting a stable Arkansas housing market that is nowhere near bubble conditions.

It also means it’s a great time to consider applying for a home loan and buying real estate in this attractive, reasonably-priced Southern state.

“From our point of view, that suggests there is downward pressure on home prices and consumers are responding,” Realtors association spokesman Ethan Nobles said. “In other words, this is a pretty good time to buy a home.”

Nationally, home sales dipped 4.3 percent compared to a year ago despite low mortgage costs.

A five-year run-up in home prices pushed ownership costs higher than many buyers could afford, causing the subsequent modest declines in prices. As inventory gets absorbed, experts believe the market will return to normalcy.

Monthly sales rose 1.7 percent over January 2006 in Pulaski County, the state’s top selling market last month at 304 units sold.

Looking at the region as a whole, Benton, Washington, Sebastian and Garland counties rounded out the top-five counties in terms of monthly home sales.

Even with Arkansas mortgage costs near record lows, Benton County posted a decline of almost 20 percent, while nearby Garland County sales slipped by 16.7 percent.

SOURCE: Arkansas News