Fort Smith, Sebastian County Numbers not bad considering...

Year to date numbers for Fort Smith and Sebastian County indicate that the average price per home is actually up by 2% this year so far, however the Arkansas Realtors Association went on to say that the number of units sold YTD is off by 6% compared to last year and the total volume of residential properties sold is only down by 4%. Compared to what I've heard is happening on the coasts...I'll take it!

So what does this really mean?

Lots of inventory on the market with limited numbers of buyers means more supply than demand and prices drop. SO...It's a GREAT time to buy!

Interest Rates have dipped again to all time lows and will continue to stay low with rates dipping below 6%.

Of the residential properties in Fort Smith that have sold this year 73% were under $150,000. From $150,000-$200,000 accounted for another 11%. In otherwords, 84% of all of the transactions so far in 2007 were UNDER $200,000!

With restructuring in the sub-prime lending market we will see more stringent lending pracices for buyers with low credit scores or little money money to put down. Foreclosures will continue to rise because many new home owners have little or no equity in their property and may choose to simply walk away in tough financial times. Courthouse auctions and bank-owned(REO) properties will continue to be buying opportunities for those ready with cash.

Because of the restructuring of the subprime lending market I predict that rental property will see a renewed surge in demand by renters and investors alike in the rental property market.

More than ever it is important to seek the counsel of a competent real estate agent who understands the changes in this market. Call King Realty Group today and let us know how we can help. 479-242-4000.

Kevin King, ABR, CRS, GRLA

Broker/Owner - King Realty Group

Fort Smith, AR