Arkansas Housing Market Analysis - July 2024
The Arkansas housing market in July 2024 presents a dynamic landscape characterized by a mix of rising and falling metrics. This analysis delves into the key data points to provide a comprehensive overview of the current state of the market.
Median Sales Price
The median sales price for homes in Arkansas stands at $259,000, reflecting a year-over-year (YoY) decrease of 3.6%. This decline suggests a cooling in the market, potentially offering opportunities for buyers seeking more affordable options compared to the previous year.
Median List Price
Conversely, the median list price has risen to $276,500, marking a 3.5% increase YoY. This upward trend indicates that sellers are optimistic about the market's potential, setting higher asking prices despite the dip in actual sales prices.
Price Per Square Foot
The median price per square foot has increased by 4.9% YoY, reaching $151. Similarly, the median list price per square foot has also risen by 4.9% YoY to $158. These figures highlight a growing valuation of property on a per-square-foot basis, reflecting a robust demand for space.
Homes Sold and Pending Sales
The number of homes sold in July 2024 is 3,541, representing a significant 9.1% increase YoY. Pending sales have also seen a rise, with 3,936 homes under contract, up by 6.9% YoY. These increases indicate a healthy level of market activity and buyer interest.
New Listings and Inventory
New listings have surged by 12.9% YoY, totaling 4,402. The inventory of homes available for sale has also expanded dramatically, with a 25.0% increase YoY, bringing the total to 10,409. This growth in supply suggests that sellers are eager to capitalize on the current market conditions.
Months of Supply
The months of supply, a critical indicator of market balance, has risen by 30.0% YoY to 2.9 months. This increase points to a shift towards a more balanced market, with a greater equilibrium between supply and demand.
Median Days on Market
The median days on market for homes in Arkansas is now 41 days, reflecting an 8.0% increase YoY. This longer duration indicates that homes are taking slightly more time to sell compared to the previous year.
Sale to List Ratio
The average sale to list ratio has decreased marginally by 0.4% YoY, now standing at 97.4%. This slight decline suggests that homes are selling for slightly less than their listed prices, indicating a minor shift in negotiating power towards buyers.
Sold Above List Ratio
The percentage of homes sold above their list price has dropped by 3.9% YoY to 16.7%. This decrease suggests that fewer buyers are willing to pay above the asking price, possibly due to the increased inventory and longer days on market.
Price Drops
The proportion of homes experiencing price drops has risen by 6.4% YoY to 29.2%. This increase indicates that sellers are more frequently adjusting their prices downward to attract buyers in a competitive market.
Off Market in Two Weeks
The percentage of homes going off the market within two weeks has decreased by 6.2% YoY to 33.2%. This decline suggests that homes are taking longer to sell, aligning with the increase in median days on market.
In summary, the Arkansas housing market in July 2024 exhibits a blend of rising supply and moderating demand. While sellers are optimistic, as evidenced by higher list prices and increased inventory, buyers are taking a more cautious approach, reflected in the longer time homes spend on the market and the decrease in homes sold above list price. This evolving dynamic suggests a market in transition, with opportunities for both buyers and sellers to navigate strategically.
