real estate review
By Ethan C. Nobles, director of media relations for Arkansas Realtors Association

This year has been, if nothing else, fascinating when it comes to the real estate market.

According to national reports, housing markets everywhere are in turmoil. It’s no surprise, then, that people here in Arkansas have started to worry about the stability of local housing markets.

Fortunately, housing markets in Arkansas have held up comparatively well. That’s particularly true in Craighead County. Believe it or not, sales in Craighead County this year are running relatively flat when compared to last year. Through September, 831 homes were sold in Craighead County, down 3.15 percent from 858 homes sold in the first nine months of 2006 – a difference of 27 homes.

Why is that significant? From the homes sales reports we’ve gathered at Arkansas Realtors Association (ARA), it’s pretty well established that 2005 was the best year on record in terms of real estate sales in Arkansas, while 2006 was the second best year on record.

In other words, sales figures from Craighead County show that 2007 is faring well even when compared with the second best year on record in terms of homes sales in Arkansas. While we hear horror stories about national real estate markets, it appears that things in Craighead County are moving along pretty well.

Want more proof of the solid market in Craighead County? Let’s take a look at 2004, which was the third best year on record in terms of real estate sales in Arkansas. Through September 2004, there were 776 homes sold in Craighead County. So, 55 more homes were sold in Craighead County in 2007, making for an increase of 7.09 percent.

In the midst of all the miserable news about national real estate markets, then, you’ve got Craighead County – an area which is comparing favorably against the second best year on record in terms of real estate sales and is outpacing the third best year on record. One could make the case, then, that 2007 is actually the third best year on record in terms of homes sales in Craighead County. That’s not bad at all.

Meanwhile, average home prices have continued to increase in Craighead County – a constant fact throughout the years. The average price of a home through the first nine months of 2007 was $137,821 in Craighead County – up 4.18 percent over an average of $132,285 through September 2006.

Jonesboro Realtor Ken Helman pointed out the tendency of real estate in the area to appreciate in value should be particularly attractive to investors. If someone owns a home today and sells it five years from now, the chances are good that individual will receive a nice profit on the transaction.

Additionally, Helman said getting into the rental property business in Jonesboro is lucrative, too. He said there has been almost no shortage of people wanting to rent homes in the area.

So, what does all this mean to consumers? Jim Furr, a Jonesboro Realtor and the 2008 ARA president, said what we’ve seen in 2007 is a bit more balance brought back to the real estate market in Jonesboro.

From about 1999 through 2006, the sellers were at a clear advantage. During those years, buyers often competed feverishly with one another and tried to submit the most attractive bid to sellers.

Furr said that has changed a bit in that sellers are more willing to negotiate. A seller might, for example, be willing to throw in a concession or two if a buyer requests it. Also, sellers aren’t as willing to gamble – they’re more inclined to negotiate rather than just assume another buyer will come along in short order.

Furr pointed out that a balanced market does not mean one which is marked by that individual that has been reported on extensively around the country – the desperate seller. He said it is true that a seller in Craighead County might have to wait a bit longer to find a buyer willing to pay the market value for a home, but that buyer will eventually arrive.

Furr said sellers in Craighead County are not resorting to slashing prices to the bone and entertaining extremely low offers. The housing market in Jonesboro is a healthy one, so buyers have to be reasonable when negotiating with sellers.
Jonesboro, Furr said, is blessed with a diverse and stable economy, thanks to Arkansas State University as well as the banking, food processing and medical industries. The stable housing market, he said, is a reflection of that solid economy.