The weather’s heating up across the region as we slide into Spring here in Northwest Arkansas. And with that, our Real Estate market is starting to pick up steam as well. So, if you’ve been thinking about making a move this year, make sure to stick with me to the end of this article because we have a lot of great information to cover here in your March 2024 Monthly Market Update.
As always, Let’s start with our inventory levels. In February 2024, we had approximately 6.31 Months of Supply for homes in our market, but we’ve picked up the pace of homes selling across the area and we’re currently below 5 Months of inventory, coming in at 4.86. Now that is a shift away from the balanced market we saw this Winter, tilting more toward a Seller’s Market, just as we’ve been predicting.
We’re seeing more Buyers coming into this Spring market, putting homes under contract, and more Closings taking place than what we saw over the last several months. Again, this Months of Supply metric is looking at all the available inventory (both Active and Pending) divided by the last 30 days of Closed Sales. The lower that final number goes, like below 4 Months of Supply, the hotter the market is.
We do expect that number to drop even more by early Summer, pulling us back into a strong Seller’s market.
With 670 sales recorded in February, we bounced off those January lows and should continue to see an increase in activity like we do every year. Also, with 3,373 active and pending listings, we started to see more supply in our market. However, we’re still well below Pre-Covid inventory levels like we saw between 2016 and 2019.
In February, the average days-on-market came in at 71 days, while the median days-on-market dropped to 51 days. So, most properties are moving pretty quickly once they hit the market, with a significant portion finding buyers within the first few weeks of listing. But it’s definitely a slower pace than the frenzy we saw throughout 2021 and even 2022.
As for pricing, February saw an Average Sale Price of $411,210 and a Median Sale Price of $350,637. Our pricing is still on a slight upward trajectory, and our market keeps growing.
I expect this average pricing level to continue at or above $400,000 as we move through 2024, with modest price growth throughout this next year. As interest rates adjust lower, we may even see home prices move higher at a faster rate than we saw in 2023. More on those rate adjustments in just a minute.
Average Prices Per Square Foot around the region stayed at or above $200/SqFt this month.
As for financing, the 30-year fixed-rate mortgage average had been sticking around 6.6%. However, last month, they jumped up to over 6.9%. It has pulled back a bit from that level, to around 6.7%. Most industry experts are expecting rates to go lower over the coming year, however, there were forecasts for lower rates by the end of 2023 as well. I’m expecting these rates to be in the Sixes for most of the year. Perhaps we could see a dip down into the Fives later in the year, with the election and everything, but don’t expect a return to the Covid era rates. This is the rate environment we will probably be in for a while.
As we roll into 2024, here at the LoneRock Team, we’re already starting to see an uptick of activity and clients reaching out to put their plans in place for this year. Despite the interest rates, there are a lot of folks who are ready to move ahead with their plans. The lock-in effect of 2023, where homeowners saw no benefit to selling their home and giving up their low mortgage payments, may have started to crack. The Rate Shock that kept so many potential buyers on the sidelines last year, seems to be subsiding as people realize that this is our new normal.
A lot of people are itching to make a move happen, and they’re finally deciding to jump in. It’s going to be an interesting Spring and Summer selling season this year.
What it all Means for You
As we move ahead into the remainder of 2024, it’s essential for both buyers and sellers to stay adaptable and informed. While the market landscape may shift, there are a lot of opportunities for those willing to jump on them. So, whether you’re in the market for your dream home or considering selling your property, or both, all of us here at the LoneRock Team at Fathom Realty would love to assist you every step of the way.
Also, we’ve put together a program to find “Hidden Inventory, Off Market Homes” for my clients without all the hassle and competition from other buyers.
This has been and will continue to be our #1 Strategy to get you and your family out of your current home and into your dream home. Let’s see what we can find together!
Just click here to learn all about the “Perfect Home Finder” Program!
To see the strategies we’ve been implementing to sell for the most the market will bear, regardless of the time of year we’re in, Watch our “Pre-Listing Price Accelerator” Guide Here and see How To Maximize Your Home Sale. It will walk you through everything we’ve been doing at the LoneRock Team to get amazing results for our home sellers.
Our Northwest Arkansas real estate market is starting the year off strong. With fresh inventory hitting the market, and pricing continuing upward, there’s a lot to be optimistic about as we move through 2024. So, thanks for checking out this Monthly Market Update. We’ll catch you on the next one!