HSV Real Estate Update for Period Ending 8/31/22 ⋆ Hot Springs Village Gazette

By Lloyd Sherman

This report covers the current activities against the same timeframe last year. In this case, August of 2021 vs August of 2022. However, 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 worthy to note 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.

Single Family properties sold in August 2022

 55 closed
 Available for sale = 55 (As of September 1, 2022)
 Average selling price – $347,500
 Median selling price – $293,500
 Average selling price per square foot – $159.34
 Average days on market – 19
 Under Contract – 50
 Taking Backup Offers – 27

Four new builds were closed in August 2022. Saline county had 26 of the 55 closed in August with an average selling price of $409,650 or $1172.68 per square foot (psf). Twenty-nine were closed in Garland County at an average selling price of $291,210 or average psf price of $147.39.

A total of 431 homes have been closed for YTD 2022, through 8/31/2022. Of those 37 are new builds of which 4 were closed in August 2022. The average PSF of new builds was 185.69, with the lowest being $157.33 PSF and the highest being $224.21. The total closed houses in Saline County this year have been 208, with an average selling price of $414,460 or an average PSF of $165.80. On a YTD basis, the listing price and selling price were within .1% of each other, which changed in August to the selling price being 1.3% less than the listing price. Garland County had 221 closed of the total YTD at an average selling price of $273,105 or $135.89 per square foot. In Garland County, the selling price was .5% less than the listing price on a YTD basis and .6% less in the month of August 2022.

Single Family properties sold in August 2021

 72 sold
 Average selling price – $329,684
 Median selling price – $293,500
 Average price per square foot – $140.44
 Average days on market 18

Through August of 2021 there had been 476 single family properties sold. The average selling price through the first 8 months was 300,946, or 127.02 per square foot. Average days on the market was 26. There had been 44 new builds closed for YTD 2021 at an average per square foot cost of $152.53.

During this same period in 2021 an additional 72 townhomes had been closed making the overall total 548. For YTD 2022, there have been an additional 76 townhomes sold making a combined total of 507.

State of the 2022 Market

1) While still relatively low, inventory seems to have somewhat stabilized in the high 50’s and low 60’s. Still a very low number, but certainly higher than we have seen in over a year now. This situation continues to create a bit of a seller’s market and continues to bode well for new builds.

2) Reports are continuing that the real estate market is cooling on a national basis. One indication of that in the Village might be that on a YTD basis, the average selling price was more than the average listing price. That is not the case with the August 2022 numbers. Selling price for August was a full percentage point below the listing price. Adding to that is that we are now out of the prime selling time.

3) We are currently running 41 closings behind where we were at this time period last year factoring in both single-family and townhome sales.

4) With inflation continuing to be a factor, and interest rates rising, we are reaching, or may have reached, a point where a certain sector of buyers may have been priced out of the market. Again, what factor will that have on our market is yet to be seen. For the sector that has been preparing for retirement, it may have little to no impact.

5) With both YTD living units and lot sales down, is this an indication of a cooling market for HSV? Most likely, but to what extent is yet to be determined. I remain optimistic that the draw of HSV will prevail and we will continue to see better than national trends in our market.

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.

Condos/Townhome Sales

With the low inventory we are experiencing, townhomes also continue to do well.

Lot Sales

Through 8/31/2021 199 lots had been closed. In 2022 that number is 162.

The overall inventory of available lots still remains high at 592, but is being chipped away at. Keep in mind this number does not take into account the 5,506 POA lots in inventory, or any FSBO’s.

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 the 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 lloydhsv@gmail.com 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.

HSV Property Comparison Activities For August 2022

Lloyd Sherman

Author & Real Estate Agent
Email: lloydhsv@gmail.com

HSV Real Estate Update for Period Ending 8/31/22