Northwest Arkansas has been nationally recognized as one of the few markets to continue outperforming the rest of the nation in 2023 regarding housing. This ranking was determined by a variety of factors, including housing affordability at the national level, job growth, and migration gains. Let’s look at the data to determine if we are really better than everyone else.
The first data point is Days on the Market, which refers to the number of days it takes for a property to be sold after it is listed. Northwest Arkansas has a shorter number of days on the market at 49 days, compared to the national days on the market at 67. This suggests that homes in the local market are selling faster, which can be attributed to a combination of factors such as increased demand and attractive pricing.
Note: Numbers reflect February 2023 data.
The List Price to Sold Price ratio signifies the percentage comparison between the original list price and the final sold price. Northwest Arkansas had a ratio of 98.55% compared to the national average ratio of 98.07%. This indicates the local market may be experiencing a heightened level of demand or competition, leading to properties being sold at a higher list-to-sold price ratio. The competition is based on demand continuing to outpace inventory. As inventory continues to grow and interest rates continue to stay at a higher level than in recent years, we anticipate the list-to-sold price ratio will plateau or experience a modest reduction locally and nationally.
Note: The national number reflects the latest data of Q4 2022, while the local number reflects Q1 of 2023.
Note: Numbers reflect the latest data of Q1 2023.
The Northwest Arkansas market has a Median Home Sales Price of $336,000, which is lower than the national median sales price of $427,500. This analysis suggests that the local market may be more cost-effective or offer a broader range of properties at various price points. For individuals moving into the area, this represents an opportunity to leverage their equity and acquire a more affordable home in Northwest Arkansas.
As our median sales price continues to grow in our area with national recognition as well as the population increases, this may impact the affordability that northwest Arkansas residents see today.
In Northwest Arkansas, the average Equity Gain is reported at $51,946, surpassing the national average of $38,029. This suggests that homeowners in Northwest Arkansas have benefited from a greater level of appreciation.
Note: The national number reflects the data from Q4 2022, while the local number reflects Q1 of 2023.
The Months of Inventory in Northwest Arkansas has six months of inventory, while the national average has 7.9 months of inventory.
Finally, data shows that 34% of renters in Northwest Arkansas are eligible to acquire a home with an average price at a 7% fixed mortgage rate, compared to a national average of 15% of renters. This impressive data highlights the region’s housing affordability and could serve as a compelling incentive for individuals considering a move or investment in Northwest Arkansas.
Investing in Northwest Arkansas real estate has been and will continue to be one of the greatest opportunities we see nationally.
Article sources:
https://www.census.gov
https://www.nar.realtor
https://nwa.mlsmatrix.com/
