Northwest Arkansas January-November home sales top $1.43 billion

The pace of home sales in Benton County slowed in November, while sales improved in Washington County. Agents sold 554 homes last month in the two counties, up 3.44% from a year ago. The combined sales volume rose 2.74% to $106.08 million.

Benton County reported softer sales last month with agents closing deals on 5.5% fewer homes compared to November 2014. Sales volume slid 4.8% to $67.764 million. But Washington County agents recorded 215 sales compared to 176 sales in November last year. Volume increased 19.5% to $38.331 million from the year-ago period.

But the real story is the overall strength the region has seen this entire year, according local experts.

“Our sales in November were up 12% over November, 2014,” said George Faucette, co-CEO of the local Coldwell Banker franchise. “We will finish 2015 up about 11% over 2014, with a total sales volume of $565 million.”

The region is on track for another near-record year with sales volume of $1.439 billion from 7,683 home sales though November, according to Eric Harris, agent with Weichert Downum Group in Springdale. Unit sales have risen 14% year-over-year and sale volume is up 12.33% compared to 2014.

“My business overall is up 18%. I attribute that to an improving market and population increases here in Northwest Arkansas,” Harris said. “Multiple offers have slowed down and there is still a good mix of investor activity and cash buyers in the local market.”

Agents are confident of a good 2016 despite the recent interest rate hike. Harris said even with the fractional rise in short-term rates, long-term interest rates remain attractive. Faucette agreed saying “the increase in long-term mortgage rates will be fairly negligible in 2016, but the fact that rates are rising at all will spur more buyers to make a buying decision in 2016.” Faucette said assuming rates do not exceed approximately 4.5%, he expects sales in 2017 to continue the pace of 2015 and 2016.

HOME PRICES
Another factor at play in the market are rising home prices. Benton County’s median home price this year has risen to $168,571, or $90.27 per square foot, up 8% year-over-year. In the previous two years median home prices are up 12.3%.

It’s much the same in Washington County. The median home price for 2015 has risen by nearly $12,000 to $161,900 as of Nov. 30. Prices have jumped to $94.42 per square foot, which is up 7.9% year-over-year. Two years ago the median home price in Washington County was $147,950.

Kathy Deck, director the for the Center for Business and Economic Research, said recently that home prices in Northwest Arkansas have recovered their losses dating back to 2009 and 2010, the market trough. She expects home prices to continue a somewhat steady climb in the coming year, simply based on the supply and demand. With new building being kept in check and continued job expansion and population growth, Deck said the local region’s growth pace is likely sustainable for now.

HOME SALES (January-November)
• Benton County
Unit Sales
2015: 4,830
2014: 4,313
2013: 4,228

Sales Volume
2015: $977.939 million
2014: $842.947 million
2013: $782.141 million

Median Sales Price
2015: $168,571
2014: $155,950
2013: $147,950

• Washington County
Unit Sales
2015: 2,853
2014: 2,426
2013: 2,491

Sales Volume
2015: $461.900 million
2014: $438.226 million
2013: $440.101 million

Median Sales Price
2015: $161,900
2014: $150,000
2013: $147,950