The residential market was down in Arkansas and across the country in the second quarter, according to the latest numbers from the Federal Reserve Bank of St. Louis’ Burgundy Book.
For the first time in more than two years, year-over-year home sales in the Little Rock MSA were negative. Home sales there, and across the country, showed signs of convergence.
Compared to numbers a year ago, Little Rock, Fort Smith, Hot Springs and Pine Bluff saw declines in the CoreLogic Home Price Index. The same Arkansas MSAs saw a decrease in single-family building permits.
Fayetteville and Texarkana were the only to see growth in the home price index and building permits. However, Fayetteville experienced declined growth in the home price index, while Texarkana experienced declined growth in single-family building permits.
Jonesboro saw a decline in the CoreLogic Home Price Index, but an increase in building permits.
“Realtors and homebuilders are concerned that increasing mortgage rates and student loan debt are muting the housing recovery,” one El Dorado area real estate agent told the Fed.
Other highlights included:
- The Little Rock office market remained steady. As asking rents continued to climb, business contacts also noted a low class-A vacancy rate that is an indicator further development could be supported.
- The retail market had a lackluster quarter, experienced negative absorption, declining asking rents and increasing vacancy rates.
- Business contacts said two large firms in northwest Arkansas are expected to close their plants by the end of they year, which would affect industrial vacancy rates.
Sign up for Daily E-news
