Across NWA, our average home prices are hovering around $400,000 this Spring.
We’re seeing strong buyer demand and a drop in available inventory coming into our Summer Selling Season.
We now have more homes Pending (Under Contract) than the number of Active homes in the market. And as we forecasted on the last Monthly Market Update, that has resulted in our Months of Supply dropping lower, below 4 months of inventory. This means we officially entered back into a Seller’s Market here in May of 2023.
Our Closed transaction numbers should continue to increase as those contracts close out. In the chart below you can see the number of Active/Pending Homes and Closings bouncing off the December low and starting to climb with our April numbers finding some resistance. However, I’d expect the number of closings to climb as more New Construction homes are completed and Closed this Summer.
Also, most homes are finding a buyer fairly quickly, keeping Days on Market low.
In April, the average sale price was $402,677, keeping pace with the March average of $402,658. This is the 3rd highest number on record, only broken by June and July of last year (2022.)
Median price, dropped just a bit, fromm $350,900 in March to $339,830 in April. This is the 4rd highest Median Price, following last summer’s previous records of $344,722 and $340,000.
I expect this pricing trend to continue, with prices generally rising slowly throughout the next several months (although slight fluctuations are normal.) This summer, Home Prices will likely go higher than we’ve ever seen across Northwest Arkansas.
After a full year of Mortgage Rates over 5%, Buyers are finally settling in to the new reality, and going ahead with their purchases. Despite The Federal Reserve continuing to raise its Federal Funds Rate for banks over the last several months, Mortgage Rates have come down off their peak at over 7% and are hovering at about 6.4%.
Overall, we are anticipating a strong Spring market with robust sales numbers and rising prices. Our Average Prices Per Square Foot remained steady this month.
What it all Means for You
For now, our northwest Arkansas real estate market is holding up very well and we’re gearing up for a big Summer season.
Right now, I’m seeing a big window of opportunity, especially for sellers since prices are on the rise again. If you’ve been thinking about selling, now might be a good time to consider putting real plans in place to cash out on that equity.
If you’ve been thinking you’ll wait till next year or later to make your move, I’d like to share a strategy to save you $20,000 to $30,000 and potentially hundred of dollars off your monthly bills, depending the equity position you have in your current home. Would that be a conversation worth having? If so, leave me a message below.
To see the strategies we’ve been implementing to sell for the most the market will bear, Watch my “Pre-Listing Price Accelerator” Guide Here and see How To Maximize Your Home Sale. It will walk you through everything I’ve been doing to get amazing results for my home sellers.
Buyers will soon be facing a challenging market again. If mortgage interest rates continue to fall, there will once again be a flood of buyers coming into the market and competing for the few homes that are available. In that scenario, prices will go even higher. So locking in a good price right now may be a smart bet. And if interest rates happen to go lower in the future, a refinance is always a possibility.
Our lender partners can fill you in on all your options, including mortgage programs like that 2-1 Buy Down we talked about last time.
Also, I’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 is 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 “Dream Home Finder” Program!