real estate review
By Ethan C. Nobles, director of media relations for Arkansas Realtors Association

A good way to figure out what’s going on in any housing market is to take a look at inventories.

If the inventory of homes for sale is rising in a given area that suggests the market is slowing. On the other hand, we can tell a market is booming if the housing inventory is dropping.

In Jonesboro, the housing inventory has consistently remained at around 700 single family, residential homes for sale week in and week out this year. A rock solid inventory level means the market in Jonesboro is doing very well when compared to some more troubled areas in Arkansas and in the rest of the nation.

Ken Helman, president of the Jonesboro Board of Realtors, said a big reason housing inventories have remained stable in Craighead County has to do with Realtors adjusting to changing market conditions. The beauty of capitalism, of course, is that competition compels industrious types to find opportunities in changing markets, and Helman said longtime Realtors have learned to adapt through the years.

After all, changing markets are the norm when it comes to real estate. Realtors who learn to adapt to those shifts stay in business for a very long time. Helman pointed out that homes are still selling well in Craighead County, so most strategies adopted by Realtors are geared toward moving a house in 60 days rather than 120 days – patient sellers still find buyers, but some homeowners want to move things along fairly quickly.

So, what are some strategies Realtors have adopted to make sure inventory levels remain stable in the Jonesboro area? Helman said one of the most important pieces of advice Realtors are giving sellers these days is to price their homes well.

A few years ago, sellers often priced their homes a bit above fair market value. Ideally, they would find plenty of buyers willing to pay a bit more for a home – there was a lot of competition among buyers back then, and it was common for buyers to engage in bidding wars.

Also, buyers were in a better position to negotiate back then. They could always lower their asking prices, if necessary, and there were plenty of buyers willing to sit down and negotiate.

In 2008, however, sellers are competing with each other more than they were a couple of years ago, so it’s more common to see them list their homes at fair market value or for just a little less in hopes of getting their houses to stand out from similar ones in the area.

Realtors, meanwhile, find themselves taking a hard look at the most recent comparative sales data they can find in hopes of finding the most accurate fair market price available. Sellers wanting to move their homes fairly quickly would be well advised to list their homes at fair market prices or, better yet, a bit below them. Helman said Realtors tend to hold more open houses now. Of course, open houses are pretty common, but Helman said Realtors are now more often inviting each other to see homes on the market. Realtors represent buyers, after all, so it’s in the best interest of the seller to make sure that a home is showed off to as many prospective buyers as possible. You just never know when a buyer’s agent will come to an open house and find it is being hosted at the “perfect home.”

Helman said the key is to make sure a particular seller’s home stands out from the pack. In addition to pricing, he said a lot of sellers are throwing in incentives. For example, a healthy remodeling allowance or some unique amenities may appeal to buyers.

Another way to make a home stand out is to concentrate on curb appeal. That can be done fairly inexpensively and can range from simple tasks like keeping lawns green and mowed to painting front doors and shutters. It seems that basic concepts such as curb appeal are very important now, so sellers taking the steps to make sure their homes are appealing from the outside are more likely to find buyers within a reasonable amount of time.

Helman said another issue in this day and age has to do with financing. There’s still plenty of money out there, but mortgage companies are looking at borrowers a little more closely due to the crash of the subprime market.

A good number of buyer’s agents, then, are advising their clients to get letters of approval from lenders. That letter lets all parties to a real estate transaction know how much money the seller can secure through a mortgage – a fairly painless step for buyers that will speed up a sale.

Fortunately, the housing market in Jonesboro has held up well, thanks in part to Realtors who sensed change in the air and adjusted their strategies accordingly.