The holidays are almost here! And as usual, our Northwest Arkansas Real Estate market is beginning to slow as we slide into the end year. However, there have been some interesting developments within the last month. Mortgage rates have finally begun to ease a bit, and our averages prices bounced back higher across Washington and Benton Counties.
As you can see here, our Inventory is staying within that 4 months of supply, which means we are still in a Seller’s Market as we march toward 2024.
In this next chart, you can see the number of Active/Pending Homes in October coming back up to match our levels from July and August. We’ve seen more homes coming into the market as of late. Also, our number of Closed transactions is starting its End of Year slide, landing down at 769 sales in October. So overall, inventory is slightly up and closings are going a little lower, which is to be expected this time of year. Buyers may have an opportunity to scoop up a better deal as the pool of competing buyers dwindles, and as more inventory stays active in the market.
As for how long properties are staying in the market, September’s Average Days came in at 81. That was a Post-Pandemic high, as we hadn’t seen Days-on-Market that long since early 2020. This is generally good news for buyers because the longer homes sit on the market, the more willing Sellers are to negotiate better prices and terms.
However, we started losing some of that market slowdown in October with Days-on-Market coming back down to 77 Days for the Average Resale Home. Median Days-on-Market dropped even more, down to 59 Days. And with a 30-45 Day Closing period for most transactions, this means most homes are still finding a contract within the first few weeks of being listed.
In terms of Pricing, our Average Home Sale Price back in May was an all-time record for our area at $437,000! Since that time, our prices fell back down to around that $400,000 baseline I’ve been expecting. But our October number came back up a bit to $411,894.
Median price stayed even with last month at $350,000.
I expect this average pricing level to continue around $400,000 as we move through the Fall and Winter. With the holiday gift of lower interest rates, we may even see home prices move higher during this time.
Average Prices Per Square Foot stayed above $200/SqFt this month.
Mortgage Rates kept rising in October, but they peaked out at around 7.8-8%. Upon the news that the Federal Reserve is pausing rate hikes, the bond and mortgage markets reacted with a sudden drop in rates. We’re currently around 7.5% and the upward trend has clearly been broken. We may continue to see further rate declines if economic conditions worsen, forcing the Fed to pause for longer or even reverse their recent rate increases.
However, the current rates are still high enough to keep mortgage payments unaffordable for most potential buyers, creating a dampening effect on the true pent up demand for homes. That’s why we’ve been recommending buyers take advantage of the opportunities we’re seeing this Fall in order to scoop up a good deal. We have more inventory, longer days on market, and sellers are more willing to negotiate as the buyer pool has shrunk.
What it all Means for You
Our Northwest Arkansas real estate market is losing a little bit of steam as we’re winding down into the Fall.
Again, I have to reiterate that I’m seeing a big window of opportunity for buyers right now. We have more homes available on the market than we’ve had in months. So I’m seeing more price reductions happening, and more room for negotiating with sellers, although prices aren’t really dropping much.
Remember, if mortgage interest rates continue to fall, more buyers will be coming into the market and competing for the homes that are available. So, prices will jump even higher from current levels. Locking in a good price right now may be a smart bet. Then if you can refinance into a lower rate in the coming year, you’ll have the best of both worlds.
Our lender partners can fill you in on all your options, including mortgage programs that may even allow you to Buy Down your rate.
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!
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 hundreds of dollars off your monthly bills, depending on 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, 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.
With that being said, I hope you have a great Thanksgiving here in November, go enjoy some time with friends and family, and we’ll catch you on the next Monthly Market Update!