The Northwest Arkansas Real Estate Market: Is Now the Right Time to Buy or Sell?

As Realtors©, the two most common questions we hear are: How is the market? and Is it a good time to buy or sell?

Market Overview

The Northwest Arkansas market is off to a strong start this year. The spring selling season has arrived early, with the number of homes sold up 7% compared to this time last year. After a period of slowing demand, we saw a resurgence last summer, and that momentum has continued. Analysts predict a steady demand for housing in our region throughout the year.

We are gradually approaching a balanced market, typically defined as having 4 to 6 months of inventory available. However, certain price points and high-demand areas are still favoring sellers.

• Days on Market: Slightly up by just a few days.
• Median Home Price: Up 2.5% compared to last year.
• Price Growth Predictions: Expected to increase 5-6% in 2024, compared to a 3.5% national average.

Is Now the Right Time to Buy?

There’s never really a bad time to buy a home. The sooner you step into homeownership, the better, as home values continue to rise and interest rates have stabilized. Experts anticipate mortgage rates will remain around 6% through 2025 and into 2026.

Homeownership is one of the most effective ways to build wealth over time. While your first home may not be your dream home, it’s a stepping stone toward future real estate opportunities. If you can afford to buy now, waiting may only cost you more in the long run.

Is Now the Right Time to Sell?

Many sellers who have been holding off due to low interest rates are finally making a move. Over the past few years, homeowners locked in historically low mortgage rates, making it difficult to justify selling at higher rates. However, life changes often dictate real estate decisions, and we’re seeing more sellers enter the market as they adjust to their evolving needs.

Common reasons homeowners are selling now:

• Downsizing from larger family homes.
• Moving up into a larger home as families grow.
• Relocating for work or lifestyle changes.

Ultimately, the decision to buy or sell depends on your personal situation. If you’re considering making a move, let’s discuss your goals and how to navigate today’s market successfully.