Bentonville Market Update December 2018

Time for the December Market Update - The Plateau Continues

Total Bentonville residential listings - 507

Bentonville sales last 30 days - 97

6 months sales - 812

The cheapest price in Bentonville is $133,000

Average price - $127 per sqft Median - $123 per sqft (outside of downtown)

months

Price Range # available average median supply

0-200 47 112 111 1.4

200-350 214 142 125 6.48

350-500 147 156 132 6.39

500-750 72 191 163 10.28

750+ 37 320 228 9.25

And here are the sold figures for this month

Price Range # sold average median

0-200 33 104 104

200-350 32 111 111

350-500 21 121 125

500-750 7 147 138

750+ 4 150 152

So what does this tell you? There's still a terribly hot market for homes under 200,000. If you were to take out the group of homes two miles west of Vaughn that are inexplicably located in Bentonville, the cheapest house in town is 149,000. If you have a correctly priced house in that range you are sure to sell it.

All levels above that amount are crowded and possibly overpriced, at least in comparison to what is actually selling. I can't make a blanket statement without slighting some better than average homes in those ranges, but still, if you're middle of the market listing at 163 bucks a sqft and the houses selling are listed at 138 bucks a square foot, you're sure to get your feelings hurt.

Maybe you think, " well 7 sold homes in a month is too little to compare." OK let's look at 6 months sales:

Price Range # sold average median

0-200 299 109 109

200-350 321 119 118

350-500 149 132 128

500-750 53 154 138

750+ 5 218 166

So if you're looking at the median prices between June and December, prices for homes are decreasing below 500k and even between 500 and 750k.

Homes selling in the 0-200 range have dropped $5 per sqft over the last 30 days. 200-350 have dropped $7.

The average square footage of a home that sold last month was 1475. So that's $7375 less than before. 2280 is the average for homes 200 to 350, or a loss of nearly $16,000 over the previous 6 month period.

Remember - any of the Three Thousand Two Hundred and Eight members of the Northwest Arkansas Board of Realtors can list your home. (plus any other agent in Arkansas) but listing isn't selling. I prepared a price analysis the other day and after listing all of the comparison sales over the last year, they listed with another agent who listed it at 230% over market value. Does anyone remember that these properties have to appraise? Is someone going to get upset over waiting and waiting for it to sell?

Call me and I can help, buying or selling.

479-903-0328

Bentonville Market Update Oct. 1

Or close to Oct. 1 !

Bentonville Market Watch

It's time for a market update for the Bentonville Real Estate market.

I am still seeing trends of ever-increasing prices in a market that has plateaued. I think a bit of a draw-back is in order.

Reminder - average is the total of all listed price per sqft divided by the total number of homes listed. Median is the spot where there are an equal number of homes listed above and below the price given. These are numbers provided to agents as a means of determining market trends.

There are currently 519 residential listings with a Bentonville address. The average list price is 159 per square foot and the median is 128 per sqft. This spread between average and median indicates a large number of homes at a high price per sqft, or an unbalanced market. The closer these two numbers are, the more balanced the market.

Currently there are 48 homes listed between 0 and $200,000. Average list is $109 per sqft and median is $113 per sqft, a very balanced market. The sales have been 323 in the last six months at an average sale of $108 and a median of $109. This indicates that if you currently have a house that is valued at $200,000 or below, you are pretty assured of being able to list it at $109 per sqft and it will sell at $108 per sqft. There are almost exactly 50 of these homes selling per month and there are currently only 48 listed. So your home will likely sell quickly due to a low supply. We need your listings!

The $200,000 to $350,000 breaks down like this:

There are 202 currently listed at an average of $144 per sqft. The median price is $125 per sqft, again an unbalanced market. 336 have sold in the last six months, or 56 per month. So there is an inventory of about 4 months. The selling prices have been $119 per sqft average and $118 per sqft median, balanced numbers, indicating the exact spot a home in this range should be listed at to sell quickly.

The $350,000 to 500,000 range:

154 currently listed with an average of $152 per sqft and a median of $128 per sqft. Unbalanced pricing and there have been 131 sell in the last six months, so we have a 6 month supply. The sales prices have been $131 per sqft average and $126 per sqft median. This is a balanced selling point, as both numbers indicate a close range of values for homes.

The $500,000 to 750,000 range:

83 homes listed, with an average price of $177 per sqft and a median of $152 per sqft. A bit better but still unbalanced overall. The sales have been 47 in the last 6 months at an average of $153 per sqft and a median of $136 per sqft. There is, therefore, a 10 month supply of these homes on hand. Can you see the pattern? Overpriced homes don't sell as well as homes in the average sales range for a six month period. The median price is usually closer to the selling price.

In the $750,000 to $1 mil range, there are 23 listed at an average of $200 per sqft and a median of $171 per sqft. There have been 2 that have sold in the last 6 months, giving a 12 month supply. The average of these has been $230 per sqft and the median is the same. In this price range, and above, the pricing varies according to the building much more than less expensive homes. It's much easier to have $100,000 in remodel or upgrades in these homes.

Above a million dollars is a desert. There are 14 of these homes listed. The last one that sold was in May of 2016. I have eliminated properties with large amounts of land and properties that are directly downtown. And these are only ones that are listed in the multi-list. But that would indicate that those 19 homes listed at over a million will be on the market for quite some time. If your home didn't sell quickly then you are probably overpriced and need to lower if you want to sell. Cold hard facts. In the last 1000 days only 7 have sold.

That doesn't mean it won't. It just better be really special.

Pay attention to your agent and your pricing. I used to know all of the agents and I trusted nearly every one to do the right thing. There are now 3182 agents in the Northwest Arkansas Board of Realtors. That's overkill by about 2000 agents. Everyone is scrambling for whatever business is out there. 2772 residential properties sold in Benton and Washington Counties in the last six months. You can do the math. There are a few people doing a lot of business and a lot of people doing ZERO business. It's in the numbers and they don't lie.

For the average homeowner, It does no good to overprice your home. You are getting sign-worn and both you and your agent are getting frustrated. If you are way over the averages of list and sell, ask yourself why. Would it be more prudent to fall closer in line with the market averages? This is not always the real estate agent's fault by the way. Sometimes the homeowner won't listen to reason. But in many instances, an agent just wants a listing, any listing, at whatever the cost. I see some agents do this and they have a huge inventory but little in the way of closed listings in proportion.

Conversely, how many times have you seen an agent trumpet that a listing, "Sold in TWO DAYS!" What does that tell you about the pricing? Because I can guarantee you, if your home sells in two days, someone didn't find out how they should correctly price your home unless there were literally no comparisons. You are leaving money on the table.

Call me or come by, email me, if you have questions. If you want to know what your home is truly worth in today's market and the time needed to sell it, give me a call. I'll give you some no-nonsense advice.

Thanks for listening!

Bentonville Market Update for August

Bentonville Market Update: 8/14/18
Bentonville addresses make up a total of 558 listings currently on the market. In the last week, 25 were listed, 34 went under contract, and 27 closed. At that rate, we're selling everything we list, statistically. 
The average list price of a Bentonville home today is $157 per sqft, although the sales prices are $119 per sqft. 
The average is so high because there are several homes listed at nosebleed prices per sqft and that is skewing the numbers upward. 
The median number is more reliable, at an asking of $128, pending at $121, and selling at $116. These numbers still reflect an artificially inflated price per square foot asking, which is in turn reflected in the selling median at $116. 
The six-month figures may be more revealing of a trend here:
Listing prices over 180 days have been 157 average, 128 median
sold listings over 180 days have been 119 average and 114 median. 
842 homes have sold in 180 days, or about 140 a month. 
In essence, we are seeing a slow climb in sales prices, with $114 per sqft sales price over six months but $116 per sqft over the last 30 days. 
The over a million dollar market is still very soft. There are 22 properties in this range and only 3 that have sold in the last 6 months, or a 3 1/2 years supply currently. 
750k to 999k - 24 currently on market and 2 sold in 6 months, that's a supply on hand of 6 years
From 500k to 750k the market edges up a little. There are currently 83 on the market, 13 under contract, and 47 have closed in 6 months. That's a 10-month supply.
From 250k to 500k - this is our bread and butter at this point, and those lower in price. 
There are currently 335 homes on the market in this range, there are 81 under contract, and 322 have sold in the last six months. So we have a 6-month supply. 
From 100k to 250k - 102 currently on the market. 466 sold in 6 months. That's a 1.3-month supply. 
There are currently NO homes listed below 100k. When they are listed, they have a life span on-market of about 4 hours. 
The least expensive home in Bentonville is 133K. 
So that's the market summary. The high end market is glacial. The 250 to 500k range has a lot of construction in the price range, more than a few months back. Sales have slowed since my last report. 
The least expensive range, 100-250k is booming and in demand, but there aren't as many homes being built in that range, or if there are they are selling quickly. 
If you have any questions, see any mistakes, or want to talk about the housing market, feel free to call me at 479-903-0328...
Larry Horton

Unrealistic Expectations in a Bull Housing Market Leads to Seller Frustration

I often see homes listed at a price that I will call "Unusual." When the Northwest Arkansas housing market exploded about 18 months ago, we as agents began to see a change in market expectations that one only sees during a boom. Bentonville is my primary market, so I'll use it as a reference.

At the beginning of the boom, prices began to climb gradually and as more downtown activities (restaurants, the museum, pubs, First Friday, etc...) became available that were of interest to the public, more and more folks wanted to be within walking distance of the square. So downtown prices began to rise above the market value of the rest of the city. Every week we saw sellers asking an "unusual" price and then within days it would be sold. An influx of cash buyers or buyers with above average means caused many downtown homes to be sold at two to three times market value. Many of these were listed in "as is, no appraisal" because they were marketing to these specific people who had the means to buy the house no matter the cost, either for remodel or demo for the lot.
The next week, the next door neighbor to the seller above decides they will sell too but they raise the price above what their neighbor got just to check the waters, so to speak. And their house sold also. And so on.
This trend continued for about a year with downtown prices finally plateauing at about 1 1/2 to 2 times market value.

Here's where the frustration comes in: Now that the market is at a plateau position, anything above that point is a unrealistic expectation. So now when I see one of these properties, I think of the price as "unusual." And in the current market, if you are incorrectly overpriced, you are looking for an "unusual" buyer. Because the standard buyer knows what to expect to pay. This holds true in the majority of cases; of course, there are some special circumstances that indeed do sell at unusual pricing.

So, what do we as agents try to do for you in order to not cause unrealistic expectations? We know the market. Do you know how many times I have heard, "My house is worth '$ X' because the guy down the street has his listed for that. I know it's true cause I saw it on Zillow (or whatever)" Listing isn't selling my friends. You can ask anything for your property, from a penny to a billion dollars. This figure has no bearing on real life unless you do your homework or you have a relationship with a trusted agent who can do that work for you.

The real estate agent who is looking out for your best interest will be able to tell you what your property is worth within a few percentage points by examining the trends in the listings but especially in the selling prices over the last 6 months. Recent history is nearly always a predictor of current conditions. That's why real estate appraisers use sold comparisons. They are getting paid to tell the bank what the market conditions are for any given area so that the bank knows how much they can lend the prospective buyer. Real Estate agents do the same thing with the knowledge we gain from market study and trends. Appraisers are of course licensed to appraise and real estate agents aren't, so we are acting within the best of our ability to give a seller or a buyer the best pricing information we can give.

So how does pricing affect you, as a seller, overall? Let's take a look:

For 2017 in ALL of Northwest Arkansas, there were 17 homes sold over a million dollars. (not including large acreages).
Currently there are 58 listed. That divides out to 3.4 YEARS worth of inventory

For the same time period and place, there were 65 homes sold over $750,000. There are currently 123 active listings in that range, or nearly 2 YEARS worth of inventory.

Want to know about Bentonville?

Last year there were 11 homes sold over 750,000 and there are currently 26 on the market, for a 2 year inventory.

Last year there were 64 homes sold between 500,000 and 750,000. There are currently 51 active, or about a year's worth.

Last year there were, between 300,000 and 500,000, 366 homes sold and there are 200 active, or about 6 months inventory.

Last year there, between 100,000 and 300,000, 953 sold and there are 170 on the market, or TWO MONTHS INVENTORY!
That's almost 3 homes sold PER DAY!

So there you are. Homes between 100 and 300k are the most desirable and fastest selling, and for obvious reasons. There are about 35 to 40 people PER DAY moving into the NW Arkansas Metro area. And most people can afford or are interested in a more modest home, under $300,000. There are others in the higher brackets as shown above, but remember - for every time a seller lists above market, there will be potential buyers who pass because of the pricing.

I know this has been long-winded, but I hope it has also been helpful to those buyers and sellers who want to know more about market trends and pricing.

If I can help you further, please email, call me at 479-903-0328, message me on Facebook, whatever is easiest for you. I'm just here to help you make the right decision, one of the largest you'll make in your life, for you and your family.

Also as a favor to me, if you like this article and more like it, please like my Bentonville Real Estate - Larry Horton page!
Thanks!

Be Safe!

Let's Take a Look at the Market

I like to provide a few statistics every now and then to let buyers and sellers know a more exact picture of the market than one can find on Realtor.com or Zillow.

Currently there are 490 homes on the market with Bentonville addresses. There have been 742 sold in the last six months, or 123, roughly, per month, so we have an inventory of almost exactly 4 months. That's a pretty low inventory of homes. And remember, winter is usually the slow season for real estate, considering the holidays and the weather. But we are having beautiful weather for late November with highs in the high 60's, so people are still out looking for homes. And the folks that are moving here don't come at any specific time, they come ALL the time. We, as a community, are fortunate. 

Centerton has 101 homes on the market and has sold or pending listings at 287 over the last six months. That's 48 sales a month in a market with many fewer homes than Bentonville. So there is about a 2 1/2 month supply of Centerton homes available currently on the market. Again, low inventory. 

Finally, Rogers has 403 homes on the market and has 745 sold in the last six months, nearly identical to Bentonville. 

Low inventory means higher sold prices for sellers because there are fewer homes to choose from. In the long term, there are several subdivisions in development that will add homes in the near future. My thought is that this will offer more choices, but the number of people moving in to our area will keep pace with the number of homes. 

If you are looking to buy or sell and want more information, please give me a call at 479-903-0328. It's a crazy market right now and although there are a lot of articles on the 'net about homes and home buying, it's good to have someone on your side doing the work. 

Prices May Have Leveled Off...But Don't Think It's Over

I watch the prices of Northwest Arkansas homes on a minute by minute basis. It's true, although maybe it seems boring, but if I'm not out working with a client, I watch the new listings and reduced prices on my multi-list every minute of daylight, often into the night. I'm trying to not only catch good listings, but to try and ferret out the over-priced, the under-priced, great locations, etc... It's what you expect out of an agent. They watch it so you don't have to. And don't get me wrong, there are great online apps that give you lots of info. But when you have years and years of experience in an area, with the neighborhoods and the people, with the great locations vs the not so great - you're getting vastly more than you can get by looking at an app. 

The crazy prices that were happening in Bentonville have leveled off, finally. Everyone in the business knew it wouldn't last forever. We were, for a while, in a position that allowed one to ask nearly anything in the downtown area and expect to receive an offer. Those days, except for rare circumstances, are over. But prices aren't dropping like a lead balloon. Things are still good and prices are up; supply is limited. Bentonville today has 491 current listings. Many of those are new construction in the southwest part of the city. 992 listings have sold or gone pending in the last 180 days, which is about 165 homes sold a month. 

Looks like a good time to get in to the market, there are deals to be had. Please call me if you have questions - answers are free! 479-903-0328

Bentonville Prices Leveling Off a Bit...

Looks like the never ending upward spiral of pricing in Bentonville, especially downtown, is leveling off a bit. There are currently 467 Bentonville listings with 268 under contract and 615 sold in the last six months. 350 of those sold have been in the last 90 days. That's a robust market folks, any way you slice it. The average list price currently in Bentonville is a whopping $145 per sqft. However, the average sold price in the last six months is only $120 per sqft. This tells us that the average home is priced quite a bit above what they are actually selling for. Some of this is skewed by the higher than average downtown home prices. The average list price of homes that would be considered to be close to downtown is $230 per sqft so you can see how that would make a different in overall home prices. Is it all too confusing? If you are looking for some direction in how to proceed in buying a home or selling your existing home, please give me a call or drop by the office. Together we can figure out the best course of action. 479-903-0328 

Reduced Price! New Listing 903 NW A - Huge lot with a Pool

New to the market, 903 NW A street in Bentonville, just a short walk to the Crystal Bridges trail system and overlook. 6/10th of an acre, 2442 sqft with two separate apartments with kitchenettes, hardwood floors, modern kitchen, two living areas, pool and lots of backyard. Convenient location to downtown area, 9 blocks from the square. All for $360,000. Please call me today for a private showing. 

 

Sure, You Can Sell It Yourself..But Should You?

I'm a pretty honest and blunt person and sometimes that makes me a bad businessman. For example, I run into people occasionally who say, "I'm going to sell my house myself and skip the fees." And a lot of the time I respond by saying that it's actually not a bad idea in certain markets. If the traffic is high enough, you should be able to sell your home without a problem. So there, I've said it in print. yes, you can sell your house on your own. But it's not so simple.

You have to first determine price, and in a hot market that can lead to your losing enough money that you could have paid an expert to keep you from doing just that. Sure, there's a lot of information on the inter-web. But it's not very precise. One leading real estate website tries to place a value on each property but this can be misleading at best and downright incorrect at worst. Your local real estate professional has access to hundred of different records that help you sell your home, including the multi-list system, county records, city planning, and a deep familiarity (we hope) with the community and how the market is in any given spot. This alone can save you thousands of dollars.

Next you have all of the legal documents that go toward a less risky transaction. Property inspection, fair housing, lead based paint, termite - did you think of all of these? One wouldn't want to sell a home only to have legal problems down the road when something turns up that you didn't think of.

Lastly, whenever you enlist the help of a professional, you will hopefully get someone who is schooled in the art of negotiation. Rarely is it that you price your home and sell it for what you have priced it at, unless you have vastly underpriced it. (see above) You want someone who can negotiate FOR you, someone who is watching out for your best interest. You want the most for your investment and the professional real estate agent can do all of that and more.

If you are thinking of buying or selling, why not call an expert? I have 30 years of experience and I can help you make your best decision. Call me today at 479-903-0328 and thank you.

Listing and Sales Numbers

When someone talks about the market in terms of a "Seller's Market" or a "Buyer's Market" you may wonder what it's all about. Here's the breakdown for Bentonville, and it's pretty comparable for the NWARK Metro area as a whole.

There are currently 393 listings for Bentonville residential properties. There have been 110 similarly listed properties sold in the last 30 days. This means that there is a roughly 4 months supply of homes on the market - meaning if no one listed any more homes, the ones currently on the market would last almost 4 months before we ran out of homes to sell. This is all based on selling price and the particulars of the home. Some will never sell at their current price for one reason or another.

A further breakdown shows more details in the following price ranges:

0-100k homes - 0 are listed, 3 have sold - Hottest market

101-200k homes - 36 are listed, 24 have sold - Next best - 6 weeks supply of homes

201-300k homes - 110 are listed, 34 have sold - roughly 3 months supply

301-400k homes - 123 are listed, 28 have sold - 5 months supply

401-500k homes - 55 are listed, 11 have sold - 5 months supply

over 500k homes - 69 are listed, 10 have sold 6 months supply

This provides you with a lot of information if you are selling or considering selling your home, and also if you are buying. It is plain to see that the market for homes under 200k is hot. Few that have been listed have not sold. And that's not to say that the more expensive homes aren't hot, they just have fewer buyers and take longer to sell.

If you are looking for your next home or considering selling, these numbers are the most important thing in determining that your price is low or high in compared to the market, unless you are willing to wait several months.

Please call me if I can help you with your home purchase or sales. It's a complicated market and you don't need to go it alone!

Buying or Selling a Home Can Be Confusing...

Buying your new home or selling your old home are both, by nature, somewhat confusing. Most people only make these types of decisions a very few times in an entire lifetime.

I find that the question I get most often is - How do I start?

If you are buying a home, it does no good to look at listings and find exactly what you are looking for, only to find that you are unable to get a loan for the amount needed. And when selling there are a lot of tips of the trade that you can't get just by reading about it online.

I have a step by step plan for those who are considering buying or selling - a way in which you can be sure you are making the right choices in either situation. No sense in being nervous! We can figure it out together.

Please give me a call or drop me an email. I can meet with you and go over every thing from start to finish and make sure that you don't miss any opportunities along the way.

And of course, there is no cost for information. Which is another source of confusion in that real estate agents don't (usually) charge for information. We make our commissions off of the selling price of the home.

We can make it through this together! Let me make it easier on you!

Call me - 479-903-0328 or email bentonville123@hotmail.com

Office Space For Lease - Convenient and Spacious Minutes to Downtown

I have a really nice office space for lease. It's located at 3110 Ford Springs Road in Bentonville. The location is ideal for an out of the mainstream office that is still just a few minutes either to the Bentonville square or I49. We have 5650 sqft listed at $5 per sqft lease. It features 24 separate offices and a high level security system. If this fits your needs please call me. 

 

SOLD! #10 Stratfield Lane in Bella Vista - $230,000 and Two Lots

I have a new listing at #10 Stratfield Lane in Bella Vista. $230,000 featuring a 2570 sqft 4 BR 3 Bath home on two lots for more privacy. Close in too, on the east side near Cooper Elementary and 71 North. Take Mercy Way to Dartmoor, right on Dartmoor past the school, left at the Tee and left on Manchester and then right on Stratfield. Take a look today and give me a call to see the inside.

 Beautiful from the front., nice quiet Cul-D-Sac

Beautiful from the front., nice quiet Cul-D-Sac