Hawks’ View – Report on Central AR
September 9-15, 2024
By Spencer Hawks
This past month I turned 41, tattooed my personal logo on my shoulder as my first tattoo, and saw my industry implement changes that will impact the real estate business for years to come. I’ll decline to digress into any specifics of the lawsuit and let those with higher pay grades than mine have those conversations. My experience though is that most buyers and sellers continue to work with their agents as they did before the suit, hopefully now securing that agency agreement on the front end. The sentiment is the same as society’s relationship with any legislative body. While most people don’t trust Congress, they do trust their congressmen. Real estate professionals tend to be friends or family of the ones they are assisting and therefore have a level of trust before the start of any transaction.
Interest rates have seen some adjustments this month based off of economic indicators. However, those rates have not been nearly enough to move buyers back into the market. The region is down 102 units from this time last year with Pulaski and Saline making up the lion’s share of the slump. Faulkner County sold the same number of units this year in August as they did last year, with the potential of a few more based off the date the research appeared in CARMLS. Lonoke and Grant counties were down too, in number of transactions, while Van Buren County was up one transaction and Lincoln County remained the same as last year.
Rausch Coleman continues to outperform in the region, selling 5.78 percent of the homes in the metro area, including 12.78 percent of homes in Faulkner County and 6.32 percent of homes in Lonoke County.
Another outstanding detail about this report is that in spite of the market being down, homes priced over a million dollars are up in numbers sold, as are homes above $800,000. In fact, homes over $600,000 are roughly even in the region, as compared with last year at this time. However, last year there were 680 units sold under $300,000. This past month there were only 585 units that sold for under $300,000. That’s a delta of 95 units and a substantial dent in the initial 102 units discussed in the former paragraph. While interest rates and lack of capital may have to bear some blame for the slump, lack of inventory is surely a part of the issue.
We’ve discussed in previous articles about the continued appreciation in the values of the Central Arkansas residential market and the relatively low market exposure still in most price ranges. Clint Bailey with Moses Tucker and I recently spoke and he shared some information with me that they had compiled concerning the commercial market and the resilience of certain sectors,
as well as the continued struggle amongst other sectors post-COVID.
The general takeaway from the information is that while retail and office spaces have been suffering since the onset of COVID, industrial and logistics sectors have rebounded and should continue to see growth. One of the most telling statements is, “The growth of e-commerce and supply chain disruptions highlighted the need for more warehousing and distribution facilities, particularly those that are strategically located near major transportation routes. This trend continued into 2024, with industrial spaces remaining highly sought after.” Places like Faulkner, Saline, and Pulaski, with access to I-40 and I-30, should see continued demand in these areas, and this is a major opportunity for both public and private investment.
A final takeaway from Clint is that COVID is still a part of our reality, and just as we have pre and post periods in other portions of history, we will look at history from a pre and post-COVID-19 lens in real estate too. The resilience of our region though is phenomenal, however. Our affordability and tax climate are nationally attractive. We have wonderful resources and communities, which are willing to step up to the plate to lay out capital investments when necessary.
The word is crisis. Xochilt asked me when I surprised her with my tattoo if this was a midlife crisis issue. In spite of a changing industry and in the midst of a flourishing career, along with this part of life called aging, evolution doesn’t necessitate crisis, but nonetheless is part of growth and change. We are not in a post-pandemic crisis in Arkansas either. We are working through the necessary changes of our time. Of course, try telling your spouse a tattoo is necessary.
Many of the birthday cards and wishes received this year involved statements like “keep the sense of adventure” and “look forward to seeing what’s next!” Isn’t that what’s wonderful about this industry, the anticipation of times to come. There may be struggles and change, but there will always be opportunities, and Central Arkansas is ripe with so many of them. Be wise, but be an optimist.
Spencer Hawks is an executive broker for Coldwell Banker RPM in Conway. Email him at hawksfamilyteam@gmail.com
