Housing Sales Hold Steady In Northwest Arkansas

Home sales held steady this February compared to last year, but winter weather may have played into the equation.

Real estate agents sold 446 houses in Northwest Arkansas in February, down two from the 448 sold in February last year, according to MountData, a real-estate marketing firm.

BY THE NUMBERS

Home Construction

There were 132 residential construction permits issued in February in Northwest Arkansas’ four major cities. Residential construction permits typically reference new construction.

•Bentonville: 46

•Fayetteville: 31

•Rogers: 26

•Springdale: 28

Source: Staff Report

Completed sales are up from the 375 houses sold in February 2012.

Sales will probably be low in the March report, too, said Paul Bynum, MountData owner.

"At this point, I blame it on weather," he said.

Last year was a strong recovery year in the housing market, he said, and he anticipates this year will be the same.

"I think people are still a bit cautious; banks are a little cautious," Bynum said.

Construction is a hopeful sign, he said. The report shows a need for more new houses priced between $250,000 and $350,000 in Bentonville and Fayetteville. Bentonville has more new homes on the market, but new homes are selling faster in Fayetteville.

Bentonville had 107 new homes listed last month compared to 79 last year at the same time. Fayetteville had 67 new homes listed in February compared to 65 a year earlier.

New homes sold in 22 days in Fayetteville last month while in Bentonville it took 85 days.

New construction is being absorbed by the housing market, said Jeff Cooperstein, a researcher for the Center for Business and Economic Research at the University of A­rkansas.

Benton County has a 68 percent owner-occupancy rate and Washington County has a 64 percent rate, according to data from December's Skyline report.

Washington County is seeing growth in multifamily units driven by the University of Arkansas. New apartments in Benton County are geared toward families, Cooperstein said.

Housing construction means more jobs, he said.

"We're seeing job creation and when you see job creation all these other good things happen," Cooperstein said.

"Every time the sun comes out, the activity picks up again," said Doug Gibson, Crye-Leike broker who represents builder Landmarc Custom Homes.

Landmarc had 12 building permits issued in February in Bentonville for projects that ranged from an estimated finished price of $209,000 to $332,000, according to city records.

Landmarc is building an even mix of pre-sold custom houses and speculative houses in Rogers and Bentonville, Gibson said.

Spring marks the beginning of the home sales season, Gibson said. People are seeing their homes appreciate and that makes it easier for them to look for their dream home, he said.

The weather hasn't been kind to builders this year. Gibson estimates 40 construction days were lost over the past two or three months. The other challenge this year has been the increasing cost of material and labor, he said.

Housing prices have crept up, Bynum said. The February 2014 median sales price rose to $142,700, compared to $138,800 in 2013 and $125,000 in 2012, according to MountData .

New houses will cost more than $100,000 because builders cannot buy the land and finish a project for that amount, Bynum said. Houses less than $100,000 are in a seller's market because of demand from both investors and potential homeowners, he said.

"New homes coming on the market is life's blood because it fuels all kinds of secondary businesses," Bynum said.

NW News on 03/19/2014

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