Winter is almost here; what does that mean for the real estate market in Northwest Arkansas? Historically, NWA has experienced a slowdown in real estate activity during the winter. Factors like the holiday season, cooler weather, and fewer daylight hours contribute to this trend. It’s not uncommon to see the average DOM rise during this period while the inventory also sees a slight increase. We will take a NWALook to provide insights on this seasonal shift and why it could provide opportunities for buyers.
The chart above shows a consistent trend in the median days on the market since 2018. September typically increases, from 47 days in 2021 to its highest point at 58 days in 2018. Historically, January and February have been the two months out of the year with the highest days on the market. However, we don’t begin to observe a significant decrease in the days on the market until April, with July having the least days on the market.
The chart above shows a parallel trend in inventory levels since 2018, closely mirroring the days on the market. September consistently had a corresponding increase in inventory. This upward trend persists through April, after which we see a gradual decrease in inventory, coinciding with the reduction in days on the market.
What exactly does that mean for buyers in the winter? While the extended DOM and increased inventory might seem like a drawback at first glance, they present a unique buyer advantage. Here are a few reasons to consider:
Reduced Competition: With more homes on the market and fewer buyers actively searching for homes, you have less competition. This can translate into more negotiating power and the opportunity to secure your dream home at a favorable price.
Motivated Sellers: Sellers who list their homes during the winter are often genuinely motivated to make a deal. Whether it’s due to a job relocation, financial reasons, or other personal circumstances, you may find sellers more willing to negotiate and close the deal.
Time to Plan: If you’re a buyer with a flexible schedule, the slower pace during the winter months allows you to take your time and carefully consider your options without feeling rushed.
During the winter, factors like reduced competition, and motivated sellers, makes it an opportune time for buyers to find their ideal homes at an advantageous price.
Source: Northwest Arkansas Board of Realtors MLS