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The Top Trends Influencing Home Sales in Northwest Arkansas

This is one of the most exciting times to be a homeowner in the Northwest Arkansas area, with a combination of factors making the local real estate market incredibly competitive. Let's explore the reasons why the NWA market has become so hot recently.

Northwest Arkansas: A Growing Metropolis

For starters, you should know that the Northwest Arkansas region has been growing continuously. In fact, NWA is one of the top 15 fastest-growing regions of the country, and its current population growth projection estimates that it will hit 1 million residents by the 2040s.

Thanks to a combination of industries setting up shop in Northwest Arkansas, including major retail suppliers such as Proctor & Gamble and PepsiCo locating teams near Walmart (which is still headquartered out of Bentonville, AR), as well as healthcare, technology, and logistics companies, NWA has seen massive economic growth in the last two decades.

For all these reasons, NWA has become a desirable hotspot for professionals who want to seek opportunities in an economically flourishing area while enjoying much of the local charm, rural sensibilities, and natural beauty that the Ozarks are known for. Teleworking and similar employee-friendly jobs have also increased in popularity.

And that surge in population, combined with a conscious desire among many of the 31 towns that make up NWA to become more entrepreneurial and "cool", has allowed the region to finally crack the list of the USA's top 100 largest metropolitan statistical areas.

With ongoing growth, increasing economic and technological innovation, and an inviting atmosphere, NWA has grown into a true modern-day Southern metropolis.

The Continuing Role of the Internet in Home Sale Trends

Another key factor affecting housing market predictions and home sales in NWA  is the role of the internet. As technology becomes increasingly important for modern life, we see an increase in the frequency with which the internet takes center stage for many people's home-buying or home-selling journey.

When clients look for a home to buy or decide to sell, they often come to the table ready to make informed decisions thanks to their own time spent performing online research. This can potentially change the buying or selling pattern of homeowners across the country, including in NWA.

Since would-be millennial homebuyers and the next generation of homebuyers are all likely to be well-informed when it comes to knowing what to look for in a home sale, they might be savvier about the general real estate landscape, geographic considerations, and more.

The Internet affects buying and selling patterns through social media. Online reviews and a social media presence can make or break any business's reputation in the digital age, meaning that homeowners and their agents looking to buy or sell in a competitive way need to understand how to use the Internet to their advantage.

All of these factors have changed what many younger clients have come to expect when buying or selling a home, which in turn could have a major effect on overall home sale trends.

The Impact of Scarcity and Demand

Although NWA has historically enjoyed affordable housing, median home prices have been increasing drastically in the past half-decade. Part of this has to do with the overall success of the region in becoming more of a metropolis, and part of it has to do with issues raised by the fallout of the COVID-19 pandemic.

Even as the region's population has surged (thanks in large part to the booming economic development mentioned above), ongoing post-COVID supply-chain problems have made it harder for new homes to be built and furnished.

Without enough home appliances and electrical systems materials for new neighborhoods, it has become difficult for homebuilders in NWA to keep up with the surging demand for new housing. In addition, it is up to local governments (such as municipalities) to free up more land for residential development, which has not always happened at a rate that matches the increased population.

As a result of this increased scarcity combined with an increased surge in housing demand, vacancy rates have plunged while home sale prices have shot up. The same has held true for rent prices. Altogether, this combination of low housing inventory and high demand for housing has made NWA an exceptionally hot seller's market in the last few years.

Competition on All Sides

Competition is the name of the game in the NWA real estate housing market. Despite the local housing industry taking on the flavor of a seller's market, the region has largely maintained its housing affordability. How can this be?

Well, even as the real estate prices have surged, average wage growth has grown in tandem, meaning that the overall cost-effectiveness of living in the area has come out on top. In other words, the NWA real estate market has stayed strong thanks to robust wage growth even as housing supply and demand issues have affected average home sale prices.

When Is the Best Time to Sell Your NWA Home?

Your head may be spinning from all the facts and figures we've thrown at you about these various economic conditions and trends. Your biggest question, though, probably concerns when would be the best time to buy or sell a home in NWA.

As we mentioned before, housing demand-supply dynamics come into play even as rates have slowly climbed due to more professionals moving into the area; we're currently living in a seller's market. The market continues to thrive as millions of homes are bought and sold, with little signs of slowing down.

With all that being said, now is better than almost any other time to sell your NWA home. You can expect to receive a fair price for your home, and you may even see the possibility of receiving a cash offer.

The advantages of selling your home during a seller's market are plentiful, including the likelihood of a faster home sale, more leverage on your side of the table during the closing process, and higher levels of competition between potential buyers jockeying to submit the best offer. 

Steps to Take as a Seller in NWA's Current Market

Even though current market trends put the selling process in your favor, there are still several steps you should take as a seller to capitalize on the gift you've received in the form of the current market and resulting home equity you’ve built. 

For instance, you should start off by pricing your home fairly. While it may be tempting to push your asking price, setting your home at or near fair market value may actually net you more in the long run. A fair listing price will attract a greater number of buyers, which in turn can prompt a bidding war that could lead to a higher selling price.

Next, be sure to leverage your Summit agent's knowledge when selecting an offer on your home. It’s an easy temptation to simply pick the offer with the largest amount after the dollar sign, but you need to assess what each buyer is bringing to the table. A surefire way to make a deal fall through is to sign with a buyer who can't genuinely secure funding among many other potential red flags your experienced Summit agent can alert you about. These include mortgage contingencies, appraisal contingencies, inspection contingencies, and other stipulations that could allow a buyer to exit the home contract if a certain parameter isn't met.

Contact a Top-Rated Home Team Today!

Navigating a booming real estate market can be tricky, which is why the home experts at The Summit Home Team want to help! Contact the team at Summit to receive expert real estate advice, guidance, and negotiation expertise so that you can take advantage of all the exciting NWA housing trends!

If you enjoyed this article, check out these other articles about Northwest Arkansas Real Estate:
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