NWA Real Estate | S1E3 | Home Affordability

Rates are Starting to Climb

-March 16th, 2022-

Are you moving to Bentonville, Arkansas? What about Rogers, Fayetteville, Springdale? Northwest Arkansas is quickly becoming one of the TOP AREAS to move to in the country receiving national recognition in publications like Forbes, Fortune, and US News. With local attractions like The Crystal Bridges Museum of American Art and Collegiate Athletic Events with the Arkansas Razorbacks our small corner of Northwest Arkansas has everything city life has to offer minus the traffic jams. In 2010 Bentonville began its Downtown Revitalization Program which set off a surge in area development, attracting new businesses and developers ready to invest in our future. NWA is no longer the sleepy small town it once was. Our region is emerging as the premier mountain biking destination in the country and becoming a hub for the performing arts.

Housing Supply

Current Interest Rates | 4.5%

Weekly Spot Check Active (vs LW) | 391 ⬆️ 400

New Listings (vs LW) | 224 ⬇️ 189

Avg $/sqft (vs Feb LY) | $145/ft ⬆️ $176/ft

Links from the Podcast

💻Pinnacle Heights Country Club: https://pinnaclecc.com

💻Downtown Bentonville: https://www.downtownbentonville.org

Agenda

Is the market finally shifting? NWA local realtors Ryan Veit and John Mayer sit down and look at current market data, trends, and listings to determine if things are finally starting to even out between buyers and sellers.

CHAPTERS:

0:00-1:38 - Intro

1:39-1:57 - Agenda

1:58-4:19 - Spot Check

4:20-6:01 - January TY/LY

6:02-9:19 - Luxury

9:20-23:27 - First Time Buyers Discussion

Talking Points

If you've been home shopping for a while you may need to get re-qualified with your lender and double check your buying power
New construction can't keep up with demand
Home prices have gone up 54% in the last 5 years in NWA
Buyers are repeatedly offering over asking price and giving an appraisal gap to cover the difference

Home Affordability in NWA

Looking at the same house in NWA in just 4 years...

In 2018 $225K 30yr loan @ 3.75% = $1,042/mo
In 2022 $325K 30 yr loan @4.50% = $1,647/mo
Projected by end of 2022 $355K @ 6% = $2,128/mo

Setting Expectations with your Realtor

Before you even begin shopping for houses you need to sit down with your agent and be transparent about what cash you have on hand, how much your willing to put towards a competitive offer and let them know what your comfort level is when it comes to your monthly payment.

A good realtor will be there to talk you down off the ledge if/when you get into a buying frenzy and start to compromise those limits you initially set for yourself.

Contact Information