By Lloyd Sherman
This report covers the current activities against the same timeframe last year. In this case, October 2021 vs October 2022. It also reflects the results over the last five years. I also break down sales on single-family properties by county and provide some additional granular data.
Information provided comes directly from the MLS (Cooperative Arkansas Realtors MLS – CARMLS) and contains only information from within the Village boundaries. Other sources may be providing their statistics based on zip code, and most of them also contain lot and townhome information, which this report breaks out as their own categories. It is also worth noting these numbers are provided several days after the month has closed which may result in differences down the road due to data not having been updated by the Realtor community. This report is effective with data available on 11/3/2022.
Single Family properties sold in October 2022
- 48 closed in September – 537 for YTD 2022
- Available for sale = 74 (As of November 1, 2022)
- Average selling price – $323,397
- Median selling price – $303,889
- Average selling price per square foot – $153.63
- Average days on market – 14
- Under Contract – 30
- Taking Backup Offers – 17
October Saline County closed was 31 of the 48, with an average selling price of $350,712 or $153.82 per square foot (PSF). 17 were closed in Garland County at an average selling price of $273,586 or an average PSF of $158.69.
A total of 537 homes have been closed for YTD 2022. The average selling price for the YTD 537 is $340,273. Of the YTD 537, 47 are new builds of which 3 were closed in October 2022. The average PSF of new builds was 188.11, with the lowest being $153.43 PSF and the highest being $254.63. The total closed houses in Saline County this year have been 269, with an average selling price of $405,969 or an average PSF of $164.65. On a YTD basis, the listing price and selling price in Saline County are within $651 of each other. Garland County had 268 closed of the total YTD at an average selling price of $273,258 or $137.48 per square foot. In Garland County on a YTD basis, the selling price continued to exceed the listing price by $893. For October closings, the selling price was 1.6% below the asking price, continuing the trend beginning in August 2022.
Single Family properties sold in October 2021
- 72 closed – 607 for YTD 2021
- Average selling price – $329,684
- Median selling price – $293,500
- Average price per square foot – $140.44
- Average days on market -18
Through October 2021 there had been 607 single-family properties sold. The average selling price through the first ten months was $303,705 or 129.24 per square foot. The average days on the market was 24.
During this same period in 2021, an additional 106 townhomes had been closed making the overall total 713.
State of the 2022 Market
1) Inventory in November 2022 shot up and back to a reasonable level where home buyers will have more choices. But we are in the slow buying season right now, and some of these properties may sit for a while before a buyer comes forward.
2) Over the past several years, the real estate market has taken some interesting turns. In our market, the prices of houses escalated in 2022 but since August of this year have entered a cooling period. What was a seller’s market has now become more favorable to buyers. However, interest rates and inflation are creating an environment where your dollar won’t get you the same house it did earlier this year.
3) We are currently running 70 closings behind in single-family properties and 18 townhomes for a total of 88 vs where we were at this same time in 2021.
4) With inflation continuing to be a factor, and interest rates rising, we have reached a point where a certain sector of buyers has been priced out of the market. With a 14.1% decline in properties sold on a year-over-year basis, the economy is significantly eating into the real estate market.
5) Are there other factors impacting the decline in our market? Maybe, but remember the quote “it’s the economy stupid.” Many are now having to make decisions on things like energy or food, and it can’t help but have a negative impact on housing. It also appears the current environment may be with us for the immediate future.
NOTE: Keep in mind that these numbers only include transactions that have gone through the MLS and as such, will not include those where lot owners have contracted directly with a builder, or someone has sold FSBO.
Townhome sales for YTD ’22 there have been 88 townhomes sold. On a YTD 2021, there had been 106 townhome properties, which represents a 20.5% decline.
Through 10/31/2021 254 lots had been closed at an average selling price of $19,712. In 2022 that number is 206 at an average selling price of $16,099. This category shows a reduction of 44 properties or 23.3%
The overall inventory of available MLS lots is 593.
Information provided comes directly from the MLS (Cooperative Arkansas Realtors MLS – CARMLS) and contains only information from within the Village boundaries. Other sources may be providing their statistics based on zip code, and most of them also contain lot and townhome information, which this report breaks out as their own categories. It is also worth noting these numbers are provided several days after the month has closed which may result in differences down the road due to data not having been updated by the Realtor community.
DISCLAIMER: Many continue to ask how long this market will continue. Given the current national climate, I don’t see much of a change in our current market for at least the remainder of 2022. These statements represent only the opinions of the writer and the questions I have about the current market conditions and how much further buyers will go before price becomes a limiting decision. The fact that many are fleeing high-density areas and relocating to places like the Village should be a favorable sign for us, but like most things these days, time will tell.
Feel free to reach out to me at [email protected]. if I can answer any questions for you. For disclosure purposes, I am a Realtor® and the numbers reported here come directly from the MLS.