January home sales, prices rise in Northwest Arkansas

If January is a good indicator of how the upcoming year will unfold, the Northwest Arkansas real estate market is in for another strong year.

On the heels of a robust year in 2016, real estate agents in Benton and Washington counties finished the first month of 2017 by combining to sell 539 homes in the area, with a sales volume of $117.09 million. That’s a 14.1% increase from $102.58 million in January 2016. The two counties had 527 home sales in January 2016. The data is provided by Eric Harris, agent with Crawford Real Estate & Associates in Lowell.

Benton County reported 334 home sales — the same number as January 2016 — worth $73.21 million. That’s an increase of 16.5% from $62.81 million in the same month a year ago. In Washington County, agents sold 205 homes in January – up from 193 in January 2016 – with a cumulative value of $43.88 million, up 10.3% year-over-year, according to data provided by Harris.

“Home sales remained strong to start the year,” Harris said. “It is definitely a seller’s market with home prices increasing over last year.”

The escalating home prices in Northwest Arkansas don’t show any sign of losing steam, either. Average single-family home prices in Benton County jumped 16.5% in the past year – from $188,082 in the year-ago month to $219,208 last month. The average home price last month in Washington County was $214,072, up nearly 4% from January 2015.

Median home prices — the middle price of the market — are also escalating to new heights. Half the Benton County homes in January sold for more than $185,200, and half sold for less. That’s up 12.4% from a median price of $164,750 in January 2016. Washington County’s median sales price last month was $174,400, up 7.6% from $162,000 in the year-ago period.

Michelle Dearing is a co-founder of Mid-Town Associates @ NWA Realty Group, a boutique real estate company in downtown Bentonville that opened last spring. She’s been a Realtor in the Benton County market since 2011, and was a licensed loan officer before that. Dearing believes 2017 will be a stronger market than the previous year, and said because of the seller’s market that exists, home builders are working quickly to get new homes built before the peak buying season.

“I think you will continue to see pressure on prices going up, but the demand is going to remain strong,” she said.

Home buyers and investors from beyond the state’s borders are also beginning to take notice of Northwest Arkansas, Dearing said. She’s taking calls more frequently from potential buyers who have been coming to the area for several years, primarily to do business with Wal-Mart Stores, but are considering moving to the area permanently with their families. It’s a credit to the region as a whole, she said.

“Northwest Arkansas has done a really good job of investing in the experience of quality living,” she explained. “With the trail systems, community centers and all the amenities that just make day-to-day life more enjoyable. It’s spreading all over Northwest Arkansas, not just downtown Bentonville. I’m definitely very proud of our region for having a master plan and sticking to it. It’s beginning to pay off.”

Dearing also said her firm is helping Arkansas Children’s Hospital with its recruitment efforts tied to the new ACH hospital campus in Springdale.

“It is such a delight to see (physicians’) faces light up when they see what all we have to offer,” she said.

Fayetteville real estate executive Mary Bassett believes the next three months will be important to help set the tone of the market the rest of the year. She echoed Dearing’s comments that relocation to Northwest is pushing supply and demand. And although interest rates have edged up slightly the last six months, it shouldn’t make a noticeable dent in the market.

Interest rates in Arkansas ticked up this week to 4.04% for a 30-year fixed rate. The rate was 4.01% last week. The 15-year fixed rate rose to 3.23% from 3.19%, according to Bankrate.com.

“Interest rates should be great for the year,” said Bassett, co-owner and broker of Bassett Mix & Associates. “And that’ll prompt buyers to buy sooner rather than later. Especially first-time home buyers, who can buy more house for less money with the lower rates.”

HOME SALES DATA (January 2017)
Benton County
Unit Sales
2017: 334
2016: 334
2015: 257

Sales Volume
2017: $73.21 million
2016: $62.81 million
2015: $45.93 million

Median Sales Price:
2017: $185,200
2016: $164,750
2015: $152,750

Washington County
Unit Sales
2017: 205
2016: 193
2015: 179

Sales Volume
2017: $43.88
2016: $39.77
2015: $35.36

Median Sales Price
2017: $174,400
2016: $162,000
2015: $159,125