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Homes Sales Drop to Record Lows

By
Real Estate Broker/Owner with Deaton Group Realty

According to this recent report at http://www.realtor.org/RMODaily.nsf/pages/News2010082603?OpenDocument, homes sales across the country have fallen to a 37 year low!  July sales were down 32% from June 2010.  In addition, home prices across the country dropped as well, by just over 4%.

What about the Little Rock area though?  Well the news was just as bad.  According to an ArkansasOnline article, http://www.arkansasonline.com/news/2010/aug/27/home-sales-dive-states-center-20100827/?latest, Pulaski County saw a 31% drop in home sales compared to July 2009.

But the news isn't all bad.  Yes, the end of the tax credit probably had something to do with this down numbers, but the market throughout Central Arkansas hasn't been that bad this year.  We have seen many months this year with an increase in sales.  When the market took a big dip a few years ago across the major markets of this country, the Little Rock area was spared.  Of course, we didn't have a huge increase like the other major markets did either.

If you live in the Little Rock and Pulaski County area, please don't buy into the doom and gloom you hear in the news.  Our real estate market is not that bad.  We can still sell homes, and there are buyers looking.  Actually, this is the best time to buy....we have the Perfect Storm for buying a home.

1. Interest Rates are at all time lows.  2. Inventory is elevated which means there are more homes to choose from.  3.  Sellers are more motivated and prices of homes are lower and can only increase from here.  4. Current FHA fees will increase in the near future which means it will cost the buyer more money to own the same home.

According to this article from Rismedia and Lawrence Yun, Chief Economist for NAR, http://rismedia.com/2010-08-26/some-homebuyers-are-holding-back-but-market-offers-bright-spots-too/, we are still going to close ABOVE average sales this year.  Its not that bad!

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I am the Managing Broker of Deaton Group at Blackwood Team.  If you would like more information on any of the topics discussed in this blog, please contact me directly. Also, please visit my website at www.DeatonBlackwood.com.

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