What's New in Hot Springs, Arkansas

GARLAND COUNTY MARKET UPDATE for 1st Quarter of 2012

2012-04-16T20:12:00Z

The numbers are in for first quarter of the year, and we have prepared the following report for you.
Residential Sales in Garland County, AR
(information obtained from the Hot Springs Board of Realtors mls)
Average Days on Market
1/1/11 – 3/31/11: 167
1/1/12 – 3/31/12: 179

Number of Listings Sold
1/1/11 – 3/31/11: 204
1/1/12 – 3/31/12: 220

Average Price of Sold Listings
1/1/11 – 3/31/11: $159,733
1/1/12 – 3/31/12: $138,153

Percentage of listings that Sold
1/1/11 – 3/31/11: 28%
1/1/12 – 3/31/12: 33%

MLS Sold Volume
1/1/11 – 3/31/11: $32,585,629
1/1/12 – 3/31/12: $30,393,831
(Click here for a more detailed report of the current market in Garland County, AR)
While the numbers are very similar to last year at this same time, we noticed that there were actually more units sold this year, however the total sales volume was a little less than last year’s volume.
While the local average home sales price is a little low, the national statistics are reporting a different story - stating the luxury market is showing signs of improvement.  According to recent reports by the National Association of Realtors - for the first time, the $500,000 and above market segment represented 10% of all home sales in 2011. Both the anecdotal and statistical information indicate that although the luxury niche is small, it is outperforming the market in general.
We have also experienced a significant increase in activity in the luxury market, with more showings of our listings priced above $500,000.  In fact, Jeff Kennedy with our team recently closed the largest residential sale in Arkansas this year.  The transaction all started from our internet marketing of a stunning waterfront estate in Hot Springs, custom-built and owned by Rick Ferguson and his wife, Deanna.  This unique property caught the attention of another savvy businessman, Jeremy Carroll, who also owned some really unique properties throughout the state.  After about 10 months of negotiations between both parties, and several trips to all parts of Arkansas to view the various properties owned by each party, another deal was made which involved the trade of a state park in South Arkansas along with a large amount of cash in exchange for a 13,828 square foot manor in West Little Rock and approximately 26 acres of land behind the home.  Contrary to the news report in February of this year by the Arkansas Business Journal, there were no donkeys or peacocks involved in the trade and the home was much larger than 8,900 square feet.
Even Warren Buffet believes the housing market is on the verge of improvement, and says along with equities, single-family homes are a very attractive investment right now. Appearing live on CNBC's Squawk Box, Buffett tells Becky Quick he'd buy up "a couple hundred thousand" single family homes if it were practical to do so. If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks.
With rates still at historic lows, real estate is a wise investment.

2012 Market Predictions

2012-02-14T03:00:00Z

The numbers are in for January, and we have prepared the following report for you.

Residential Sales in Garland County, AR

(information obtained from the Hot Springs Board of Realtors mls)

Average Days on Market

1/1/11 – 1/31/11: 174

1/1/12 – 1/31/12: 172

Number of Listings Sold

1/1/11 – 1/31/11: 63

1/1/12 – 1/31/12: 68

Average Price of Sold Listings

1/1/11 – 1/31/11: $160,223

1/1/12 – 1/31/12: $122,824

Percentage of listings that Sold

1/1/11 – 1/31/11: 27%

1/1/12 – 1/31/12: 28%

MLS Sold Volume

1/1/11 – 1/31/11: $10,094,089

1/1/12 – 1/31/12: $ 8,352,040

(Click here for a more detailed report of the current market in Garland County, AR)

While the numbers reflect a little slower start as compared to last year for the Hot Springs area, we are seeing many positive signs indicative of a growing economy in Hot Springs. The infrastructure of Hot Springs is still on the move with the expansion of the highways, i.e. the Highway 70 West expansion and the south leg of Higdon Ferry expansion are both now complete and are attracting new commercial and residential building sites. Other local projects are on the rise and stirring a lot of interest and growth with the north leg of Higdon Ferry, the south end of Highway 7, and the north leg of Highway 270 all under construction, and Highway 70 East just met state planning approval for expansion as reported by the Arkansas Democrat earlier this week. These are all great signs of growth in our area.

We think this year might be the one in which the housing market starts to strengthen, according to the 2012 predictions of several housing industry observers and experts across the U.S.

Jed Kolko, chief economist at Trulia.com, a real estate search and research website, says he sees rising rents, a humble recovery in housing prices and even some unexpected "hot" spots where he thinks price increases will exceed the average this year.

Kolko said his predictions are based on 14 months of U.S. job gains and the assumption that "there's no big crisis in 2012."

He also sees shrinking mortgage delinquencies in 2012, though foreclosures will rise as old delinquencies exit the paperwork pipeline.

Increasing demand for rental properties should mean higher rents, he added, but should also spark new construction to keep up with demand.

Mortgage rates should rise a bit, too, said Kolko; calling that a sign of economic strengthening. "Higher rates for a reason we can cheer," he said.

Rich Arzaga, founder and CEO of Cornerstone Wealth Management in San Ramon, California and an adjunct professor in personal finance at the University of California at Berkeley also agrees with Kolko about the rentals. "This was going to happen even without foreclosures. If you look at the statistics on homeownership, it shows that people are buying homes later in life, and that the echo boomers will drive rentals for a longer period of time."

Jeffrey Rogers, president of Integra Realty Resources, a New York-based real estate valuation and consulting firm, also agreed with Kolko's assessment of the rental market: Multifamily units - that is, building with five or more units - "are one of the property types that still received funding for new projects throughout the downturn." (See full article here)

Putting the market recovery in terms of graph curves … It doesn’t seem to be a U-shaped recovery and it’s definitely not V-shaped. We believe it’s more of a 'Nike swoosh recovery,' where it goes down fast and then goes up very gradually.

What are your predictions for 2012?

Inventory Drops to its Lowest in Over 4 years!

2011-11-09T20:02:00Z

The market stats are in ... and while the overall pictures isn't glowing with improvement, we were able to find a silver lining in the cloud and a bit of positive news. Below is the overall year-to-date report (information obtained from the Hot Springs Board of Realtors® mls):

Average Days on Market

1/1/10 – 10/31/10: 172

1/1/11 – 10/31/11: 166

Number of Listings Sold

1/1/10 – 10/31/10: 1067

1/1/11 – 10/31/11: 1039

Average Price of Sold Listings

1/1/10 – 10/31/10: $152,158

1/1/11 – 10/31/11: $150,605

MLS Sold Volume

1/1/10 – 10/31/10: $162,353,137

1/1/11 – 10/31/11: $156,478,698

Then when we looked closer at the detailed report (click here for details), we noticed one really POSITIVE factor. Inventory is at the lowest we have seen it in at least 4 years (total of 1072 homes on the market vs. an average of 1350 homes on the market in our area). We think this could be a good indicator that our market may start to improve soon. With inventory steadily dropping, we hope to see the pendulum swing back a little more evenly and start to level out the supply and demand.

With inventory at its lowest, NOW may be your best chance to sell your home so let’s make sure it’s priced right, dressed right and it’s out-shining the competition. If you have any questions or would like to talk more, please feel free to give us a call at 501.655.6247 or 501.276.4446.

Market Update on Garland County Residential Sales

2011-09-09T02:17:00Z

In comparing the residential sales reports for Garland County, it appears that residential sales in Garland County for the first eight months of the year is down as compared to the same period last year. The first quarter of 2011 started out holding steady and appeared to be a mirror image of the same period in 2010. However, the second quarter of 2011 was the down period – whereas we did not see the spike in sales in our area as we normally do with vacation home sales in the summer months. May and June of this year limped along in summer sales, then we had a nice spike in July with an increase in the number of units sold up 24% over June, however it wasn’t enough to increase our year-to-date figures.

Take a look at the below statistics on residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors®mls). Click here for more detailed information on the Hot Springs market.

Average Days on Market

1/1/10 – 8/31/10: 172

1/1/11 – 8/31/11: 160

Number of Listings Sold

1/1/10 – 8/31/10: 863

1/1/11 – 8/31/11: 832

Average Price of Sold Listings

1/1/10 – 8/31/10: $150,863

1/1/11 – 8/31/11: $148,988

MLS Sold Volume

1/1/10 – 8/31/10: $130,195,229

1/1/11 – 8/31/11: $123,958,794

While this is one of the toughest markets we have seen, our team is still getting the job done. Did you know that the Kennedy Team is currently ranked as the number ONE listing team in sales for 2011? In addition, the Kennedy Team is holding the number ONE position for total residential sales for the combined 4 year (2008 – Aug 2011) recession in our area, selling more than any other Real Estate Agent or Team in Garland County during one of the toughest markets in recent history. While many might say “Gosh, I bet you really took advantage of the foreclosure market with those sales” … It’s not at all true! In fact, very few of those sales were foreclosures – as the Kennedy Team has never sold a “short-sale” and does not specialize in foreclosures.

If you are thinking about selling a home in the Hot Springs area, or know someone interested in selling, we would be glad to help! Please feel free to give us a call anytime 501.655.6247.

When the Going Gets Tough, the Tough Gets Going

2011-07-06T05:07:00Z

In comparing the residential sales reports for Garland County, it appears that residential sales in Garland County for the first half of the year is down as compared to the same period last year. Unfortunately, our market has yet to see the spike in sales that we normally see in the summer months.

Average Days on Market

1/1/10 – 6/30/10: 177

1/1/11 – 6/30/11: 161

Number of Listings Sold

1/1/10 – 6/30/10: 653

1/1/11 – 6/30/11: 589

Average Price of Sold Listings

1/1/10 – 6/30/10: $147,907

1/1/11 – 6/30/11: $142,804

MLS Sold Volume

1/1/10 – 6/30/10: $96,583,343

1/1/11 – 6/30/11: $84,111,989

While it’s no secret that we’re in a tough market, we believe we can still get the job done. The Kennedy Team ranked #1 in total residential sales in Garland County for the past 3 year recession. As the saying goes “When the going gets tough … the tough gets going!” and that’s exactly what we’re doing. If you or someone you know is interested in selling , please give us a call and we'll be glad to help.

Residential Sales Picked up in April

2011-05-23T20:47:00Z

In comparing the monthly residential sales reports for Garland County, it appears that residential sales picked up significantly in home sales in Garland County for April with a 48% increase over March. The majority of those homes sold in April were homes sold under $150,000.

Then we compared the year-to-date market statistics and compared it to the same period as last year, and it appears that we’re still running a very similar race as last year. Take a look at the below statistics on residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors® mls) .

Average Days on Market

1/1/10 – 4/30/10: 176

1/1/11 – 4/30/11: 172

Number of Listings Sold

1/1/10 – 4/30/10: 383

1/1/11 – 4/30/11: 373

Average Price of Sold Listings

1/1/10 – 4/30/10: $144,606

1/1/11 – 4/30/11: $142,090 .

MLS Sold Volume

1/1/10 – 4/30/10: $55,384,315

1/1/11 – 4/30/11: $52,999,773

Click here for more detailed information on the Hot Springs market, and be sure to call the # 1 real estate team in Hot Springs – the Kennedy Team with Hot Springs 1st Choice Realty at 501.655.6247 or 501.276.4446

Open House in Lotus Valley on Sunday

2011-04-20T22:00:00Z

Lotus Valley, Hot Springs - We invite everyone to visit our open house at 121 Lotus Loop on May 8 from 1:00 PM to 3:00 PM.

Property information

Luxury Housing Market Showing Signs Of Recovery

2011-04-08T02:02:00Z

In a transaction which set a record for most expensive U.S. residential sale ever, Russian billionaire Yuri Milner (who heads Digital Sky Technologies) has reportedly paid $100 million for a 25,500-square-foot Los Altos Hills (CA) home which was not even listed for sale. This record-setting sale is just one indication that the wealthy have opened their wallets and are shopping for homes again.

Nationally, the million dollar and above housing market rose 4% in February year-over-year as luxury buyers snapped up homes, often for all cash. The jump in luxury purchases is counter to the real estate resale trend in general. In February, total residential sales dropped 2.8% as compared to February a year ago.

While Hot Springs, Arkansas does not have triple digit luxury homes in our market, we currently have 25 homes priced at $1 million or more listed for sale. While the luxury home sales have been down throughout the last couple of years, we are starting to see an increase in the number of showings of our luxury homes as of the first of this year. The most expensive home for sale locally has an asking price of $4,899,000, one of our finest listings, built by one of Arkansas’ finest builders – Ferguson Custom Homes of Little Rock.

Why the rise in luxury sales? According to Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing, an organization which trains luxury agents internationally, “The number of wealthy households in the U.S. and world-wide is almost back to where it was before the downturn. Add the fact that many high net worth individuals are reassessing their investments and rethinking how and where to invest. High-end U.S. residential real estate is now attracting many of these dollars, Euros, and Rubles. This bodes well for the luxury home market in the short term. Luxury may well be the real estate segment that leads the recovery.”

For more information on the luxury real estate market, please contact Hot Springs’ only certified luxury home marketing specialist, Jeff Kennedy with Hot Springs 1^st Choice Realty at 501.655.6247 or online atwww.BestofHotSprings.com

Residential Sales in Hot Springs are Running Neck & Neck with Last Year

2011-04-07T18:09:00Z

Looks like residential sales in Hot Springs are running a close race with last year at this point. We just compared the recent market statistics to the same period as last year, and the first quarter of 2011 is looking very similar to last year’s first quarter, with a slight increase in the average price of sold listings, and a slight drop in the number of days that it takes to sell a home – actually both positive signs of some improvement. Take a look at the below statistics on residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors® mls) .

Average Days on Market

1/1/10 – 3/31/10: 175

1/1/11 – 3/31/11: 168

Number of Listings Sold

1/1/10 – 3/31/10: 255

1/1/11 – 3/31/11: 246

Average Price of Sold Listings

1/1/10 – 3/31/10: $134,594

1/1/11 – 3/31/11: $139,139

MLS Sold Volume

1/1/10 – 3/31/10: $34,321,632

1/1/11 – 3/31/11: $34,228,333

Looking Good in 2011

2011-02-22T02:08:00Z

Looks like residential sales in Hot Springs is staying on track with continuous signs of an improved market. We just compared the recent market statistics to the same period as last year, and 2011 is looking better overall! Take a look at the below statistics on residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors® mls) .

Average Days on Market

1/1/10 – 1/31/10: 154

1/1/11 – 1/31/11: 177

Number of Listings Sold

1/1/10 – 1/31/10: 67

1/1/11 – 1/31/11: 75

Average Price of Sold Listings

1/1/10 – 1/31/10: $123,600

1/1/11 – 1/31/11: $141,793

MLS Sold Volume

1/1/10 – 1/31/10: $15,628,862

1/1/11 – 1/31/11: $21,004,032

Click here for more detailed information on the Hot Springs market, and be sure to call the # 1 real estate team in Hot Springs – the Kennedy Team with First Choice Realty at 501.655.6247 or visit us online at www.BestofHotSprings.com

The Time is Perfect ... Are You Ready?

2011-01-19T02:03:00Z

The most important question for the last three years has been “Have we hit bottom yet?” and the answer is finally “YES!”. The year-end statistics indicate an improved market in Hot Springs in 2010. Click here for more details.

The recent recession we just experienced was quite challenging. Throughout this period, we noticed a different trend in the sellers.

As we began to see some signs of a dip in the market near the end of 2007, we had the “experienced” sellers – who sold right when the market began to shift. Those were the sellers who had equity in their homes; they felt certain the real estate market was shifting; and they quickly jumped before the pendulum hit bottom.

In 2008 – 2010, we had the “distressed” sellers. Those were the sellers who had very little equity or no equity in their homes; they could not make their payments, and they were unable to sell because they would have to come to the closing table with money. Those were the ones who elected to turn their homes over to the banks.

In 2009 – 2010, we had the “astute” sellers. Those were the sellers who had “prime” homes (good home, good location, and the ability to make payments or did not owe on their homes). Those sellers were in control, and did not have to sell, however, those chose to sell for other beneficial financial decisions.

Today we have the “uncomplicated” sellers in 2011. These sellers have survived the recession, and they are interested in selling their homes for a fair and reasonable price.

If you have been waiting for the best opportunity to buy a home … we believe that opportunity is now here! Rates are still low, home prices are no longer dropping, and we are ready to help. Visit us online at www.BestofHotSprings.com or give us a call today at 501.655.6247 (Jeff) or 501.276.4446 (Debi).

RESIDENTIAL SALES ARE BACK ON THE RISE IN HOT SPRINGS!

2011-01-15T20:27:00Z

Great News! The year-end numbers are in, and it’sall good! Looks like residential sales in Hot Springs are back on the upswing, and we are ecstatic! Take a look at the below statistics on residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors® mls) .

Average Days on Market (YTD)

2009: 154

2010: 172

Number of Listings Sold (YTD)

2009: 1243

2010: 1260

Average Price of Sold Listings (YTD)

2009: $148,065

2010: $152,280

MLS Sold Volume (YTD)

2009: $163,720,480

2010: $177,226,819

Click here for more detailed information on the Hot Springs market, and be sure to call the # 1real estate team in Hot Springs – the Kennedy Team with First Choice Realty at 501.655.6247 or visit us online at www.BestofHotSprings.com

Arkansas Leads the Way in Recession Recovery

2010-12-12T17:15:00Z

Thought you might be interested in the latest market update on residential sales in Arkansas. According to an article from the Associated Press, Arkansas is leading the way to the recession recovery. It’s very refreshing to hear some good news for a change. To read the article, click here "Arkansas Leads The Way In Recession Recovery ."

While Arkansas appears to be doing well, we are also seeing a slight improvement in the Hot Springs area as well. Below are some statistics on the residential sales in Hot Springs (information obtained from the Hot Springs Board of Realtors® mls) .

Average Days on Market (YTD)

1/1/09 – 11/30/09: 154

1/1/10 – 11/30/10: 172

Number of Listings Sold (YTD)

1/1/09 – 11/30/09: 1163

1/1/10 – 11/30/10: 1161

Average Price of Sold Listings (YTD)

1/1/09 – 11/30/09: $147,034

1/1/10 – 11/30/10: $151,444

MLS Sold Volume (YTD)

1/1/09 – 11/30/09: $171,001,100

1/1/10 – 11/30/10: $175,826,486

While homes are taking a little longer to sale in 2010 in the Hot Springs area, reports indicate that the average sales price and the total $ volume rose somewhat in residential sales … and that’s a great sign! We also saw an increase in home sales for the month of November this year as compared to the previous month…. (72 sales in November vs. 65 sales in October). Click here for more detailed information.

If you are thinking about selling your home or other real estate in the Hot Springs area, we are always glad to help! And if you're thinking about purchasing a home in the Hot Springs, it's a great time to buy. Just let us know if we can help!

Dec. 31, 2010 is the deadline to take advantage of the home energy efficiency tax credit

2010-12-10T18:59:00Z

For most Americans, the holiday season means shopping for family and friends. But this year, spending a little money at home can equal big savings today, next year and for years to come. With time running out to cash in on the popular home energy efficiency tax credit—which expires Dec. 31, 2010—homeowners need to act now to save up to $1,500 on their 2010 tax return.

The federal “Non-Business Energy Property Tax Credit” gives homeowners the opportunity to earn a tax credit equal to 30% of what they spend on qualifying home energy efficiency product purchases, such as insulation, weatherization products and high-efficiency heating and air conditioning units. Homeowners can claim the credit, which is capped at $1,500, when they file their 2010 federal income tax return.

“In addition to making a home more comfortable, energy efficiency upgrades give homeowners a triple return on their investment,” said Mike Lawrence, vice president and general manager of Insulation Systems for Johns Manville, a manufacturer of building products. “One, a return on their 2010 income taxes; two, monthly savings in the form of lower heating and cooling bills; and three, a return when it comes time to sell their home, since data show that energy efficient homes have a higher resale value.”

What is the Home Energy Efficiency Tax Credit?

Established as part of the American Reinvestment and Recovery Act, homeowners who purchase eligible energy efficiency products or a renewable energy system for their primary residence will receive a federal tax credit for 30% of the cost, up to $1,500. The credit applies to all qualifying material costs (including insulation), and in some cases also counts toward installation costs. The maximum credit of $1,500 is for a two-year period, which means that if you claimed a portion of the credit on your 2009 taxes, you are eligible only for the remaining balance in 2010.

What kinds of products and projects qualify for the tax credit?

Many products qualify for the tax credit, but building products manufacturer Johns Manville recommends investing in simple energy efficiency projects, such as insulating and air sealing, before spending money on more costly upgrades, such as solar, wind and geothermal energy systems.

“Energy efficiency projects truly are the most logical ‘first step’ for a majority of homeowners,” said Lawrence. “In many cases, simple projects can yield significant results. For example, U.S. EPA data show that homeowners can save up to 20 percent on their heating and cooling bill by having a properly insulated and air sealed home.”

Attics are often the largest source of potential heat loss in a home, and even homes built recently are likely to be among the 46 million under-insulated homes in the U.S., according to Harvard University. Homeowners simply need to measure the amount of insulation in their attic with a ruler to see if they have an adequate depth. The average U.S. home may need up to 19 inches of fiber glass attic insulation for maximum energy efficiency.

“In addition to adding insulation, homeowners should also air seal their attic. After all, even the best-insulated attics will fall short of their money-saving potential if attic cracks and gaps allow a home’s conditioned air to escape,” added Lawrence. “And as homeowners seal and insulate their homes for better energy efficiency, they should consider using products that don’t contain formaldehyde, such as John Manville’s Formaldehyde-free insulation. Avoiding formaldehyde sources helps improve indoor air quality.”

I’ve purchased and installed my product. Now what?

To take advantage of the credit, homeowners will need to file an IRS Form 5695 and submit it as part of their 2010 taxes. The form must be accompanied by a store receipt—credit card statements won’t work—and homeowners need to obtain and keep on record a “manufacturer’s certification statement” for each item. These statements are typically found on the product manufacturer’s website, and the IRS cautions that the manufacturer’s certification statement is different from the Department of Energy’s Energy Star label, and not all Energy Star labeled products qualify for the credit.

What happens if I miss the deadline for the tax credit?

While $1,500 is a significant incentive, homeowners shouldn’t shy away from an energy efficiency project if they miss the tax credit deadline. Energy efficiency is a long-term investment that will save homeowners money for the life of their home, and what’s more, many state and local incentives still apply after Dec. 31. Homeowners should check with their utility company to investigate local rebate opportunities, and also look into additional incentives available through their state’s energy office.

(Information published by RISMEDIA, December 6, 2010)

Hot Springs Market Update from the Kennedy Team

2010-10-06T02:26:00Z

Thought you might be interested in the latest real estate market update, so we would like to share the latest news.

While September is generally the month that we start to see fewer buyers as we face the fall and winter seasons in our market, this September has been a little different this year and sales are holding steady.

Below is an overview as compared to the peak summer season (according to our local mls):

Jun Home Sales: 93

Jul Home Sales: 68
Aug Home Sales: 92
Sep Home Sales: 91

While home sales are holding steady, the better news is that the inventory is dropping – creating less competition for our sellers! Here’s an overview of the inventory (according to our local mls):

Jun 30 Homes on the Market: 1476
Jul 30 Homes on the Market: 1485
Aug 30 Homes on the Market: 1431
Sep 30 Homes on the Market: 1368

For a more detailed report of last month’s activity, please click here.

Another good indication of the buyer activity is the number of web site hits we receive, and again, September was awesome! We received 110,972 hits to our primary website –www.BestofHotSprings.com for the month of September, while we averaged 87,000 hits during the summer months.

Along with the above statistics, the Kennedy Team is also pleased to mention that in spite of this tougher economic state - our team is working hard, performing well, and holding the #4 position in residential sales in our area with $6,365,700 in closed transactions as of this month. So if you or someone you know is thinking about selling a home, we would be happy to help.

We’ll continue to keep you updated on the latest news, and please feel free to call or email us with any thoughts or questions.