A Lesson in Supply and Demand in Fort Smith Arkansas
Submitted by Kevin King on Tue, 12/04/2007 - 1:01am.With the looming rumors of the housing market taking a down turn, it's important to remember that opportunities will also arise. Just like the stock market has opportunities in an up or down market, so does the housing market. The amount of supply of houses for sale in Fort Smith continues to grow minimally while the number of buyers has dwindled slightly. The net effect is more supply than demand therefore prices go down because sellers are competing with each other to try and capture the few buyers that are active in the marketplace.
Absorption rate is something else to consider, like a retailer tracks the amount of time it takes to turn over the inventory currently available. For example, if 66 homes have sold over the last 11 months (an average of 6 per month), divided into the current inventory of 36...that equals 6 monhs of inventory on the market. Meaning that of the current inventory on the market, it should be completely gone, statistically, by the end of 6 months.
Lets look at some real numbers for Sebastian County:
| Price |
Currently on Market |
Sold in Last 12 Mos. |
Avg Sold /Month |
Absoption Rate (in months) |
Average Days on Market |
| 0-$100,000 | 267 | 679 |
56.6 | 4.72 months |
96.5 |
| $100,001-$200,000 |
337 |
658 | 54.8 |
6.15 months |
110 |
| $200,001-$300,000 | 153 | 135 | 11.3 | 13.6 months |
138 |
| $300,001-$400,000 | 57 | 45 | 3.75 | 15.2 months |
106.5 |
| $400,000+ | 66 | 27 | 2.25 | 26.33 months |
171 |
(Data based on Fort Smith Board of Realtors MLS)
If you break the numbers down even greater it equates to 73% of the units sold this year being under $150,000. Then from $150,000-$200,000 makes up another 11% of the units sold or 84% of the units sold this year are under $200,000 while 16% of the remaining units sold are of the $200,000+ price range.
I hope this information is helpful and allows you to understand the current market in this area. Going back to opportunity...when a market is soft it creates GREAT buying opportunities. You might keep an eye out for short sales or HUD repos and VA foreclosures. These can be found at www.citysidecorp.com , www.ocwen.com , www.myfir.com , and as always check the current market listings right here at www.kingrealtygroup.net (advanced search).
Remember that the greatest tool you can have in the process of buying or selling real property is that of a good, well educated real estate agent who knows the stats on the local market. For more information on this report call King Realty Group today at 479-242-4000.
Kevin King ABR, CRS, GRLA
Broker/Owner - King Realty Group
