When mortgage rates started rising, home owners were reluctant to sell their homes. But as interest rates have stabilised, sellers are acclimatizing to higher rates and listing their properties on the Arkansas MLS.
Northwest Arkansas (Fayetteville-Springdale-Rogers) has been insulated from economic issues that have hit other areas. That’s thanks to the presence of large corporations like Walmart and Tyson Foods.
1. Strong Economic Foundation
The northwest arkansas real estate market has a solid economic foundation, bolstered by a robust economy, stable population growth, and diverse investment opportunities. The region is home to a growing list of Fortune 500 companies, art museums, and investments in outdoor recreation, making it a top destination for buyers looking for a strong quality of life and diversified investment potential.
According to Gregg Logan, Managing Director at RCLCO, residential housing is expected to continue experiencing pent-up demand, with new construction outpacing supply in the market. He also spoke to the challenges faced by communities in meeting the need for affordable homes, citing the need for more land and housing type diversity.
When buying property in the Northwest Arkansas real estate market, financial preparation is a crucial first step that encompasses everything from establishing a budget to securing mortgage financing. Understanding these phases of the purchasing process will help you navigate the landscape effectively and make strategic choices that align with your personal and investment goals.
2. Affordability
As a region, Northwest Arkansas has some of the best housing affordability in the state. Wages are rising faster than home prices, and the regional economy attracts people from across the country who want to work here.
But as a result of higher interest rates and a challenging economy, many families are struggling to keep up with housing costs. When family incomes are stretched to cover rent or mortgage payments, they often have less left over for other essential needs, like food and healthcare.
Fortunately, local nonprofits are working to address the issue. Circles NWA recently hosted a panel on affordability in Fayetteville, where several people shared their stories of being cost-burdened. Other groups like Groundwork Workforce Housing and Countdown Properties are transforming old hotels into affordable living complexes.
3. Diverse Investment Opportunities
The region’s diversified economy and business environment offer attractive opportunities for investors. With an influx of new residents, demand for commercial property is growing. In particular, the market’s proximity to marquee employers like Walmart is attracting businesses to set up offices in Northwest Arkansas.
Rising mortgage rates have slowed home sales in the region. Existing homeowners are staying put and renting out their homes rather than trading them for new ones. However, as mortgage rates stabilize, this trend is expected to reverse.
Investors can find affordable properties in neighborhoods like Siloam Springs. This suburb offers a tight-knit community and scenic surroundings. It’s also close to local attractions and schools, making it a good choice for families. Other popular neighborhoods include River Mountain, Briarwood, and Boyle Park. Each offers a different lifestyle, with River Mountain offering a scenic location on the Arkansas River and potential vacation rentals.
4. Growth
In a market where demand continues to rise for both residential and commercial properties, home buyers should possess the knowledge to make strategic choices that align with their investment goals. This guide seeks to empower homebuyers with insights that facilitate a smoother purchasing process and ensure that their investment decisions are sound and lucrative.
The Northwest Arkansas real estate market is gaining momentum, with new residents flocking to the region for a strong economic foundation and a vibrant culture that features a diverse array of outdoor activities and modern amenities. This growth has fuelled a steady demand for homes, catalyzing the appeal of this dynamic market as an ideal location for investing for long-term financial gains.
The local housing market is heating up, with home prices increasing faster in the second quarter than the national average. Realtors and analysts note that new homebuyers are seeking smaller spaces with fewer lawns and locations near trails, city centers and other attractions.