Northwest Arkansas Residential Market Moving Toward Equilibrium

Sales of new and existing homes in Northwest Arkansas were down in the third quarter, but building activity was down even more, according to a study released Tuesday.

Data from the third-quarter residential Skyline Report, commissioned by Arvest Bank Group Inc. and compiled by the Center for Business and Economic Research in the Walton College of Business at the University of Arkansas, showed that only 325 building permits were issued in the third quarter, down from 653 permits issued in the same period of 2007, allowing more unoccupied homes to be absorbed.

The number of unoccupied homes continued to decline with 1,343 units remaining in the market, a decline from 1,594 in the second quarter.

Benton County experienced a decline of 23.5 percent in available complete inventory from the second quarter and a decline of 46.5 percent from the third quarter of 2007.

Washington County experienced a 2.1 percent inventory increase over the second quarter, but a decrease of 32.7 percent over the past year.

The number of new homes sold decreased 27.5 percent year-over-year, from 1,106 in the third quarter of 2007 to 802 in the third quarter of 2008.

Sales of existing homes declined by 17.5 percent over the same period last year, with 1,662 existing houses sold in Benton and Washington counties from May 16 to Aug. 15, 2008.

In the third quarter, the average sale price in Northwest Arkansas declined from the third quarter 2007 levels by 1.6 percent in Benton County and by 4.1 percent in Washington County.

 

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