Nov 15, 2022 - Real Estate
Homebuying in Northwest Arkansas is finally easier, but not cheaper
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Northwest Arkansas' real estate market is starting to level off, according to the latest data from Redfin/MLS.
Why it matters: Northwest Arkansas metro buyers longed for a little relief after two-plus years of plummeting inventory and sky-high home prices.
Mortgage rates started to surge in May and have since passed 7%, squeezing homebuyer budgets.
By the numbers: NWA's inventory is up 27.7%, and pending sales are down 16.5% since May.
- Median home sales prices fell from $340,000 to $327,000 from May to September.
- Sellers are increasingly dropping their asking prices, the data shows, with roughly 34% of listings seeing price cuts in September, up from 21.5% in May.
- Meanwhile, a shrinking share of homes sold above list price. In September, 28% of homes in NWA sold over list price, down from 50.6% in May.
- Homes are now sitting on the market more than twice as long. Listings in May sold in five days on average, compared to 13 days in September.
Yes, but: Monthly mortgage payments are significantly more expensive than they were a year ago.
The bottom line: While the Northwest Arkansas market is calmer, rising mortgage rates may keep homeownership out of reach for many.