Hot Springs AR Real Estate Market is Heating Up
As we head into summer, it is a great time to review how the 2017 real estate market is doing so far. According to the “Market Watch”, there are 9 signs that the housing market will continue to get hotter.
1) Mortgage activity is strong: According to recent data from the Mortgage Bankers Association, purchase activity is up 3% year over year despite an increase in interest rates. While the longer-term trend for rates is higher, we are seeing a bit of relief right now as well-qualified borrowers start seeing rates of 4% or less —the lowest levels of 2017. That will only spark more activity in the coming months, fueling already high demand.
2) Unemployment is ultralow: the labor market is very tight and Americans are finding plenty of work. The headline unemployment rate fell to 4.4% in April as payrolls surged after a March lull. The details also were encouraging, with hourly pay up 2.5% year over year and hours worked slightly higher. A strong job market means more Americans with stable family budgets, and that ultimately results in a robust housing market.
3) Foreclosures are rare: Foreclosures are near a 10-year low as stricter lending standards and regulations have prevented banks from extending risky mortgages, and kept unqualified borrowers out of the market. The lack of foreclosures is an undeniable sign of health for the housing market, and that these gains are sustainable going forward. Click here for the other 6 signs and full report.
1) Mortgage activity is strong: According to recent data from the Mortgage Bankers Association, purchase activity is up 3% year over year despite an increase in interest rates. While the longer-term trend for rates is higher, we are seeing a bit of relief right now as well-qualified borrowers start seeing rates of 4% or less —the lowest levels of 2017. That will only spark more activity in the coming months, fueling already high demand.
2) Unemployment is ultralow: the labor market is very tight and Americans are finding plenty of work. The headline unemployment rate fell to 4.4% in April as payrolls surged after a March lull. The details also were encouraging, with hourly pay up 2.5% year over year and hours worked slightly higher. A strong job market means more Americans with stable family budgets, and that ultimately results in a robust housing market.
3) Foreclosures are rare: Foreclosures are near a 10-year low as stricter lending standards and regulations have prevented banks from extending risky mortgages, and kept unqualified borrowers out of the market. The lack of foreclosures is an undeniable sign of health for the housing market, and that these gains are sustainable going forward. Click here for the other 6 signs and full report.
While Hot Springs is a different market with about one-third of the market being vacation home sales, we blend the two markets together and get more of a slow and steady upward pace. (Sales of vacation homes slumped nearly 22 percent in 2016 to the lowest level in three years, even as overall home sales hit their highest level in a decade, according to a new report from the National Association of Realtors (NAR)
Overall, the real estate market in Hot Springs area is good and currently up 7% over last year for the total sales volume. Below is an overview of this year’s sales compared to this same time period year-over-year.
Average Days on Market
1/1/16 – 4/30/16: 155
1/1/17 – 4/30/17: 183
1/1/16 – 4/30/16: 155
1/1/17 – 4/30/17: 183
Number of Listings Sold
1/1/16 – 4/30/16: 438
1/1/17 – 4/30/17: 435
1/1/16 – 4/30/16: 438
1/1/17 – 4/30/17: 435
Average Price of Sold Listings
1/1/16 – 4/30/16: $160,065
1/1/17 – 4/30/17: $172,817
MLS Sold Volume
1/1/16 – 4/30/16: $70,108,707
1/1/17 – 4/30/17: $75,175,720
1/1/16 – 4/30/16: $160,065
1/1/17 – 4/30/17: $172,817
MLS Sold Volume
1/1/16 – 4/30/16: $70,108,707
1/1/17 – 4/30/17: $75,175,720
(data obtained from the Hot Springs Board of Realtors mls, and it does not include home sales by owner, or other sales not reported thru our local mls)
Click here to take a look at the next report that shows a more detailed overview of the current home sales in Garland County, AR. This report will give you a better look at the supply and demand of homes.
If we can help more, please don’t hesitate to give us a call at 501.655.6247. It is always our pleasure to serve you.
Warm regards,
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