Home Prices in Arkansas See Steady Growth

Home Prices in Arkansas See Steady Growth

The housing market in Arkansas has shown a marked increase in home prices over the past year. As of May 2024, home prices in Arkansas have risen by 6.0% year-over-year, bringing the median home price to $265,300. This upswing in prices is accompanied by a 1.6% rise in the number of homes sold compared to the previous year. Additionally, the inventory of homes for sale has significantly increased by 18.8% year-over-year, indicating a broader range of choices for potential buyers.

The median days on the market for homes in Arkansas have also slightly increased, now standing at 40 days, which is an extension of 8 days compared to the previous year. This could suggest a more competitive market or buyers taking longer to make purchasing decisions. Despite this, the state of Arkansas remains attractive to homebuyers, with its median home price still below the national median of $293,349, making it a relatively affordable market.

Little Rock Housing Market Trends

The capital city of Little Rock, however, presents a contrasting picture. The median home price in Little Rock was recorded at $250,000 in May 2024, reflecting a 6.2% decrease from last year. This decline is noteworthy, especially as homes in the city receive an average of just one offer and typically sell within 41 days. Despite the decrease in the median price, the sale price per square foot in Little Rock has seen a slight increase of 0.7% from the previous year, currently standing at $141 per square foot.

These metrics suggest a nuanced market in Little Rock, where while the overall median price has decreased, investors might still find valuable opportunities depending on the property specifics. The extended duration of homes on the market might further indicate that buyers have more negotiation room, which could be advantageous in securing better deals.

Statewide Real Estate Insights

On a broader scale, the Arkansas real estate market continues to show resilience and growth. With a median home price of $238,400 and a year-over-year increase of 5.2%, the market deems robust. Home sales have increased by 4% year-over-year, while the number of homes available for sale has also climbed by 7.8%, indicating a healthy supply-side scenario.

Looking forward, the predictions for the Arkansas housing market remain optimistic. Analysts expect home prices to continue their upward trajectory, albeit possibly at a slower pace due to the increasing inventory levels. Overall, the Arkansas housing market offers a promising outlook for both buyers and sellers alike, maintaining its position as a dynamic sector in the state’s economy.