Northwest Arkansas home sales up 17% through April

There were 801 homes sold in Benton and Washington counties in April at a combined value of $177.387 million, a much faster pace than the 677 homes valued $134.62 million reported a year ago.

April home sales volume rose 31.76% year-over-year, according to data provided by Eric Harris an agent with Weichert Downun Group in Springdale.

Agents at the local Coldwell Banker franchise also had plenty to smile about, reporting sales volume increases of 28% for homes that closed in April. The pending home sales for April at the firm rose 29% from the same month last year, an indication that May will also be a strong month.

George Faucette, co-CEO of the local Coldwell Banker franchise, said the firm’s 2016 closed sales volume is up 18% from a year ago as the average sales prices continue to rise. He said the momentum continues to build upon what turned out to be a strong first quarter gain. He attributed some of the average sales price increase to more upscale buyers coming and more expensive homes being purchased. He said rising prices are also the result of increased demand relative to supply.

Double-digit increases from a year ago are attributed to a robust local economy, growing population and rising personal incomes amid the 2.9% March unemployment rate. An active new home market in the region is helping buoy the total sales volume as new home prices are up by roughly 10% from a year ago given the higher land costs.

Economists agree that as new home prices rise and the inventory of existing homes remain selective home prices overall will continue to increase.That has been a catalyst for much of the price growth in the region in recent months.

The median home price in Benton County rose to $183,600 in April, a gain of $10,600 or 6.12% from a year ago. Average home prices rose to $227,173, up from $17,813 or 8.5% in same month last year.

Through the first four months of 2016 home sales volumes in Benton County rose to $348.793 million, up 24.4% from the $280.33 million reported in the same period a year ago. Agents sold 242 more homes year-over-year with units rising from 1,424 to 1,666. Not only are more homes being sold but prices are rising over the past the year. The median price per square foot rose to $95.87 in April, compared to $89 a year ago and 15.5% higher than the $83 per square foot in 2014.

In Washington County agents sold 996 homes in the first four months of the year, with a combined value of $195.613 million. A year ago there were 851 unit sales valued at $157.673 million. Unit sales are up 17% and sales volume rose 24% over the same four months in 2015.

Just as in Benton County home prices continue to escalate in Washington County with median home prices rising to $160,000 in April from $155,000 a year ago. Median home prices are up 6.6% over the past two years.

Agents told Talk Business & Politics that they expect home prices to moderate in the coming months as more homes come on the market in the summer selling season.

HOME SALES (January-April)
Benton County
Sales Volume
2016: $348.793  million
2015: $280.330 million
24.42%

Unit Sales
2016: 1,666
2015: 1,424
16.99%

Median Sales Price
2016: $173,000
2015: $165,000
4.84%

Washington County
Sales Volume
2016: $195.613 million
2015: $157.673 milion
24.06%

Unit Sales
2016: 996
2015: 851
17.03%

Median Sales Price
2016: $160,000
2015: $155,000
3.22%