Pace of housing sales in state slows in July

Arkansas home sales rose slightly in July to 3,158 homes sold, the Arkansas Realtors Association said Wednesday.

That was a 1.1 percent increase over sales in July last year.

Sales were steady in July but had been “burning hot” for the first half of the year, said Mervin Jebaraj, interim director of the Center for Business and Economic Research at the University of Arkansas, Fayetteville.

Sales in June exceeded 3,500, the highest total since about 3,490 homes were sold in June 2006.

In Northwest Arkansas, a shrinking supply of lots is contributing to slower sales, Jebaraj said.

“So at some point it had to slow down,” Jebaraj said.

But Jebaraj emphasized that he wouldn’t make broad assessments about the housing market on one month’s data.

“It could just be a blip and return to really high growth rates,” he said.

Home sales have been steady in central Arkansas, said Scott McElmurry, chief executive officer of Bank of Little Rock Mortgage.

He has heard anecdotal comments about a shortage of homes for sale in central Arkansas, McElmurry said.

“But that hasn’t led to multiple offers [on homes for sale], which is what will

happen if inventory gets too scarce,” McElmurry said.

There were 584 homes sold in Benton County last month, the association said, one more home than was sold in July last year.

Pulaski County Realtors sold 459 homes in July, about 6 percent fewer than a year earlier. Washington County sales totaled 334, down 8.2 percent from July 2016.

There has been significant new-home construction in Northwest Arkansas, Jebaraj said.

“But at some point we think it might taper off unless we see more lots developed and new subdivisions develop,” Jebaraj said. “But there is still a pretty good supply of homes coming on the market.”

There continued to be an increase in house prices in July, said Michael Pakko, chief economist at the Arkansas Economic Development Institute at the University of

Arkansas at Little Rock.

Average home prices in the 43-county area surveyed by the association rose almost 5 percent to $182,414.

Pakko isn’t expecting home sales to change too much.

“But it seems like it’s still a pretty solid market, especially in the faster growing areas of the state,” Pakko said.

August home sales look very good, McElmurry said.

And even sales for September appear to be strong, he said.

“Traditionally, because of the start of school, we see a lull in September,” McElmurry said. “It normally picks back up in October and, of course, November and December are normally slower months.”

Homeowners still are reluctant to step out and put their home on the market,

McElmurry “Especially said. because so many have such a good interest rate,” he said. “When you couple a rate that may be a point higher than you have and the margins on a more expensive home, you may end up not getting as much for your money.”

So some homeowners are deciding to stay in their homes, McElmurry said.