Is Bella Vista being overbuilt in the near term?
According to data sourced from the NWA Board of Realtors, Bella Vista, Arkansas is experiencing an increase in new construction homes on the market. As of January 24, 2022, there were 103 new construction homes available for purchase. Additionally, during the fourth quarter of 2022, the city of Bella Vista issued 87 new construction permits, indicating a continued trend of growth in the new construction market.
The average time a new construction home spent on the market in 2022 was 83 days. We are seeing builders offer concessions such as covering a portion of closing costs or offering additional amenities such as a fence or refrigerator to incentivize buyers. For potential buyers in Bella Vista, this presents an opportunity to take advantage of these incentives and potentially secure a new construction home at a more favorable price.
Another variable that could impact housing in Bella Vista is a city regulation to limit the number of short-term rentals such as Airbnb, to 600. This regulation is an effort to balance housing by preserving the owner/occupied residential nature of the area. Taking effect on February 27, 2023, the regulation may limit the potential income for investors and homeowners that were looking to rent their property as short-term rentals.
With a growing inventory of new construction homes, builder permits pulled in the fourth quarter, and regulations on short-term rentals, this may result in an increase in the days on market. While this may present an opportunity for buyers, sellers may face a more competitive market in the Bella Vista area.