The Arkansas housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $254,500, reflecting a slight decrease of 0.2% year-over-year. In contrast, the Median List Price has increased by 1.9% to $283,300, indicating a divergence between seller expectations and actual sale prices.

Price Per Square Foot metrics show a more pronounced upward trend. The median Price Per Square Foot has risen by 6.1% to $152, while the Median List Price per square foot has increased by 6.7% to $161. These figures suggest that while overall sales prices have slightly declined, the value attributed to each square foot of property has appreciated significantly.

In terms of sales activity, the number of Homes Sold has decreased by 6.2% year-over-year, totaling 2,332 units. Pending Sales have also seen a decline of 2.8%, with 3,248 transactions in the pipeline. New Listings have dropped by 10.6%, amounting to 3,329, which may indicate a tightening of supply in the market.

Despite the decrease in New Listings, inventory levels have increased by 9.7% to 10,226 homes, contributing to a significant rise in the Months of Supply, which now stands at 4.4 months, up 70% from the previous year. This increase in inventory and supply suggests a shift towards a more balanced market, potentially easing the competitive pressures seen in previous years.

The Median Days on Market have increased by 11% to 64 days, indicating that homes are taking longer to sell. The average sale to list ratio has slightly decreased by 0.3% to 96.7%, suggesting that buyers are negotiating more effectively, resulting in sales prices closer to or below the list prices.

The percentage of Homes Sold above list price has decreased by 2.9% to 12%, further highlighting the shift in market dynamics. Price Drops have increased by 1.3% to 20.5%, reflecting sellers' adjustments to align with market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 5.3% to 28.2%, indicating a slower pace of transactions.

Overall, the Arkansas housing market in February 2025 is characterized by a slight decline in sales prices, increased inventory, and a longer time on the market. These factors suggest a cooling trend, with potential opportunities for buyers to negotiate better deals as the market adjusts to new conditions.