Home sales in Arkansas rose 4.3 percent in November compared with November 2014, the Arkansas Realtors Association said Thursday.
There were 2,104 homes sold in November, up from 2,017 sold in November 2014. The association surveys home sales in 43 of the largest counties in Arkansas.
"November is traditionally one of the weakest months of the year for the number of homes sold," said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas in Fayetteville. "But even 4 percent is a good number. It still indicates health in the housing market."
Home sales in rural areas of the state -- those counties that are not part of a metropolitan area -- also have been consistent with the growth seen in the larger markets, Deck said.
Home sales had been improving by double-digit margins in the months leading up to November.
But November 2014 was a particularly strong month, said Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock.
"So it's not surprising to see that [4.3 percent] growth come out a little lower than what we had been seeing in previous months," Pakko said.
The average home price in November was $155,768, little changed from the $154,906 average price in November 2014.
"Small, sustained increases [in home prices] are comfortable and make you less concerned that we're entering another housing bubble," Deck said. "And it's more reflective of the overall state of the economy."
Benton County recorded 342 home sales in November, slightly more than the 325 sold in Pulaski County. Benton County had the highest average home price at almost $200,000.
Statewide home sales rose 9.2 percent through the first 11 months of last year, the association said.
Benton County Realtors sold 4,837 homes through 11 months, up 11 percent from the same period in 2014. Pulaski County sold 4,612 homes through November, up 9 percent from the first 11 months of 2014.
The average home price for the first 11 months of last year was $161,281, an increase of 3.4 percent from the same period of 2014.
"[Through November], the housing market has just looked great in the state," Deck said.
With only December totals lacking, 2015 likely will be the third year in a row for solid home-sales increases in the state, Pakko said.
In October, the federal government made changes in the rules for home purchases. The changes added an extra step to the closing process and were expected to extend closing by three days to a week.
The changes could have pushed some closings that normally would have been in October to November, said Scott McElmurry, chief executive officer of Bank of Little Rock Mortgage.
"A lot of it came down to how ready lenders were for the changes," McElmurry said.
Because of streamlining the process, Bank of Little Rock was able to reduce its closing time despite the new rules, McElmurry said.
Business on 02/05/2016