Home sales are slowing and prices show some signs of leveling off in Northwest Arkansas.
- Yes, but: Rent continues to climb.
Driving the news: The biannual single-family and multifamily residential Skyline Report for the second half of 2022 was released to the media Tuesday.
- The number of homes sold in NWA dropped nearly 21% during that time, compared to the first half of last year.
The big picture: Even with the Fed's recent interest-rate hikes intended to curb inflation, consumers are still spending on goods and services.
- But real estate — typically a family's largest expense — has slowed since mid-2022 as mortgage rates increase the overall cost of owning a home.
Threat level: NWA's multifamily vacancy rates are at a record low — 1.6%, down from 2.3% in the first half of last year, according to the report. Rent is at an all-time average high of $926, up 7.6% from $860 in June.
Why it matters: Housing prices and rent amounts largely dictate who can afford to live in Northwest Arkansas and the wages they need to maintain a reasonable quality of life. In recent years, lower- and middle-range wage earners have found it increasingly difficult to buy a home or rent living space in NWA.
By the numbers: The average sales price for a single-family home during the second half of the year in Benton County was $401,875, down about 0.5%. It was $376,924 in Washington County, up 3.6%.
- Inventory was higher, with 1,618 homes listed for sale in NWA at the end of December, up from 584 a year earlier.
- There were 2,115 residential building permits — a broad measure of how much construction is underway — issued in the last half of 2022, down from nearly 2,900 six months earlier.
- Multifamily vacancies got even tighter in the period, led by Fayetteville with only a 1% rate. Springdale (1.5%), Bentonville (2.3%), Rogers (2.4%) and Siloam Springs (5%) followed.
- Multifamily building-permit value — another broad measure of activity — was $333 million, down from $371 million as of June 30.
What's next: Skyline data on the commercial real estate market is due out in April.

Get more local stories in your inbox with Axios NW Arkansas.
More NW Arkansas stories
No stories could be found

Get a free daily digest of the most important news in your backyard with Axios NW Arkansas.