Sales of regular houses and distressed real estate homes plummeted in central Arkansas during the month of February 2011 compared with year-ago levels. Housing prices also dropped in the region over the same period, mirroring national trends in both prices and sales. Realtors reported that the decline has been expected by most.
In February, sales of Ward distressed properties and regular homes in the rest of Lonoke County, as well as in other counties of the central region that include Faulkner, Saline, Grant and Pulaski; reached a total of 445. This includes both new and existing single family houses and represents a 7.29% decrease from February of last year when a total of 480 housing units were sold. The average selling rate also went down over the same period.
The average selling rate of central Arkansas distressed homes for sale and newly built homes in February was pegged at $163,057; down by 1.62% from one year ago when the average rate was at $165,745. According to realtors, the decline in both sales and prices had been expected, mainly because housing trends in the region often mirror nationwide trends. During the month, national housing sales and prices also posted a decline, although at a much steeper level than what was seen in the central region of the state.
Realtors also stated that prices have dropped in the area because of the considerable amount of distressed real estate homes that are currently in the market. When it comes to sales, they explained that fewer people are buying homes right now, mainly because a lot of them have lost their jobs. The state has an unemployment rate of 7.8% during the month, which roughly means that a little over 106,000 regional residents are out of job.
Although the unemployment level was a bit better than the 8% recorded in February of last year, analysts claimed that it would still be difficult for a big number of residents to purchase a house, even low-priced distressed homes. In addition, realtors said that the high unemployment level and the oversupply of foreclosures are weighing down consumer confidence and scaring off potential buyers who have the means to purchase.
They also attributed the decline in prices and sales to tight standards in the lending market which prevent would-be buyers from securing financing to purchase distressed real estate homes and newly-built houses. Analysts asserted that the housing market of Arkansas will only recover if more jobs are created.
Sales of Regular and Distressed Real Estate Homes Down in Arkansas is a post from: Foreclosure Homes Investing