January home prices cooled in Northwest Arkansas

Home prices in Northwest Arkansas were down slightly last month from record highs reached last year, according to data from Redfin.

Why it matters: Any relief from sky-high asking prices is welcome, especially as mortgage rates creep up, Axios' Brianna Crane writes.

By the numbers: NWA's median home sales price was $330,000 in January, up 10.8% from last year and down nearly 1% from December.

• Inventory was up a whopping 157% compared to last January, but that figure reflects how tight the market was last year.
• The number of houses up for sale in 2021 was 2,424, then dropped to 680 in 2022. There were 1,754 on the market last month.

Homes were on the market for a median of 31 days at the first of this year, up from 16 days last year.

Flashback: NWA home prices shot up nearly 27% to an average of $385,821 in the first half of 2022, compared with the same period in 2021, according to the Skyline Report.

Zoom out: Nationally, median home sales prices have risen 1.3% from one year ago.

• The national median home sales price in January was $383,000.
• Sales fell for the 12th consecutive month, according to the latest from the National Association of Realtors.
• As demand slows, homes sit on the market longer, which gives buyers a little more room to negotiate.

What’s next: Spring is typically marked by increased demand, more competition and higher home prices, so it stands to reason that prices will rise again soon.

• Yes, but: Experts predict 2023 will see a far less-frantic housing market than in 2022.

The bottom line: We're starting to see a moderate market correction but home values aren't falling.