What a Market!

You want to know how tight the NWA real estate market is right now?

Listings:

Bentonville - about 65 listings that aren't just homes for demo for the lot or large acreage. Prices starting at $252,000.

Rogers - 77 listings

Centerton - 33 listings

Springdale - 71 listings

Fayetteville - 92 listings

Cave Springs - 5 listings

Lowell - 7 listings

This on top of being named one of the most undervalued "hidden gem" markets in the country. With more people on the way every day. Yes, there are homes available and yes, it is an excellent time to sell your property. Crazy times but we're here for you!

412 N. Byers, Gentry - New Listing! $159,900 - SOLD

Cute little home in Gentry only 25 minutes from Bentonville, 3 BR with partial remodel, 1448 sqft for $159,900. Nice larger lot with an extra nice shop that’s 12 x 20 with upstairs storage. Call me for a showing today, 479-903-0328

Gallery Block

These are example images. Double-click here to replace these images with your own content. Learn more

Bentonville Real Estate Market August 2021 - Where Are We?

Sometimes I feel like I’m not in Northwest Arkansas any more. The real estate market continues its juggernaut upward with no end in sight. In my opinion, as long as the powers that be continue to pour money (thankfully) into our area this trend is not going to end any time soon.

The latest numbers are - 105 homes currently on the market with a Bentonville address, the cheapest being $195,000. Average list price is $275 per sqft but the median is a modest $208 per square foot. Anybody remember when they opened Glenbrook Subdivision over behind the ball park and the homes started at $100 per sqft? We thought it was madness. Anyway…

30 Day sold prices average $187 per sqft and the median is $163 which is a little more in line with reality. What an odd reality it is, too. The Arvest Skyline Report says that the average sales price in both Bentonville and Rogers over the last quarter is just above $350,000. There’s a lot of smaller new construction that make up this lower average, but that figure is up from just over $300,000 at this time last year. The number of homes for sale is at the lowest level since 2009.

In multi-family, every city is experiencing a decrease in vacancy rates from near 5% to just above 3%. lack of rentals is hurting the area as much as lack of homes to purchase, and Bentonville and Centerton alone have 2700 units under construction .

So it’s tight. I would say.

Some advice for those with property to sell - make sure you are dealing with an agent who knows about land sales. There are a myriad of factors to consider when selling your land, and if you list too high, you’re only going to be frustrated. And if you are selling directly to the developer - sorry developers but its true - you are likely getting less than market value for your land, even if you have to pay a commission. You have to have an expert. A stab in the dark won’t cut it, and whatever your neighbor got last spring may be sorely undervalued from where we are today. Give us a call at 479-903-0328. I can give you some advice. And it’s free.

This Northwest Arkansas City Ranks #9 of 772 Markets for Most Overpriced Homes in America...

You gotta love these lists that predict doom and gloom for home buyers and sellers across the United States. This one, from GoBankingRates website, has a list of the top 50 most overpriced markets in the US.

“Buying a home can either be a great investment or a money-draining liability. And while there are safer bets than others, no one can predict all the ebbs and flows of the housing market. What can be said with certainty is that the houses in certain cities carry price tags that exceed their actual value. To learn where exactly this is in the case, we turned to a new GoBankingRates study that identifies the 50 cities with the most overpriced homes in the U.S. Using housing 2019 data from Zillow, GOBankingRates analyzed the 722 biggest housing markets in the country. For each city they took the Median list price and compared it to the Median home value to see where the largest difference in price and value was found. Read on to discover which city has the most overpriced homes in America.”

So what is the real story? Can you really take data from a third party company and determine your home value vs market price? The short answer is no.

With many companies a proprietary algorithm is used to determine what they believe to be the market value of your home. This figure can be a range of several thousands of dollars and is supposed to give you a good representation of your true value; many people fully believe everything they read on the internet, especially something as complicated to the layperson as real estate value. But is it in your best interest, as a layperson. to rely on a computer program to determine the value of your biggest asset?

Let’s take the Rogers example given, but we can assume this is the case for all of the Northwest Arkansas Metro. The company doing this list states that the median list price is $321,854.75 and the median home value is $184,960, which they indicate is $136,894.75 overpriced. They clearly state in the article that they used 2019 numbers, two years old and stale numbers if you are familiar with our market.

Let me tell you something first: asking ain’t getting. List price has little to no meaning in determining value. You can ask anything you want for your house, a million dollars or a dollar…asking isn’t getting. The best way to determine - and the way your Realtor will determine - value is to look at the market overall, listings, pending sales and sold listings over a set time period. If you look at the sold listings in Rogers over the last six months, you’ll find that the median list price was $277,500 and the median sold price was $276,000 - that amount is perfectly balanced, 100% of market price. The median price of listings currently on the market is $394,560 and the pending sales are at a median of $331,250. What does this tell us about your home’s value? Nothing. Yet. What it shows is a trend. Median sales over the last six months were $53,750 lower than today’s pending sales.. But this still doesn’t indicate SOLD price. Not until they close can you determine this month’s trend. Can you tell what the actual trend is from looking at a third party site? Nope. But I can. As a Realtor, I have immediate access to this information.

Sales in the last 30 days are at a median of $269,900 list

30 to 60 days ago - $264,995

60 to 90 days ago - $279,000

90-120 days ago - $296,000

120-150 days ago - $262,900

150-180 days ago - $279,950

So what do we see? The overall market over the last six months in Rogers is steady. Homes are selling at nearly 100% of list price. If the pending sales price of $331,250 hold to be true then that would be a huge jump in median price over the course of a month.

But there is so much more to determining your home’s value. The price per square foot in one neighborhood is far higher than in others. A median price for the entire city gives you very little insight into your home’s value. Rogers has homes scattered over a huge area, from Beaver Lake to Cave Springs, with all sorts of variables. You have to study the prices in relationship to similar homes that have sold - not that are listed - in order to determine value. This is exactly what a licensed appraiser does, and what a Realtor does for you on an informal basis. We cannot, by law, determine an appraised value if not licensed to do so.

Let’s look at a city overall, then. If you are selling homes at a modest pace at a stated price then the value of your home is pretty well determined by that price. But let’s say a new subdivision comes online and starts selling homes.

Here’s a quick refresher from Wikipedia on the meaning of Median:

“In statistics and probability theory, the median is the value separating the higher half from the lower half of a data sample, a population, or a probability distribution. For a data set, it may be thought of as "the middle" value. The basic feature of the median in describing data compared to the mean (often simply described as the "average") is that it is not skewed by a small proportion of extremely large or small values, and therefore provides a better representation of a "typical" value. Median income, for example, may be a better way to suggest what a "typical" income is, because income distribution can be very skewed.”

So then we can say that median price is the typical home price not skewed by a few high or low numbers. But if you add a subdivision with 30 or 50 homes at a price $50,000 above the current median - and you have ready, willing and able buyers for those homes - then the median price goes up. Maybe it’s short term if the number of homes is limited. But in our area, with new subdivisions coming online nearly every month, this median price will continue to rise.

Confused? Naturally. Real estate is complicated and it involves one of the biggest investments you make. It can’t be determined by entering in your address and getting a result that you can bank on. It is so much more.

Here’s the bottom line: Use a Realtor. IT COSTS YOU NOTHING TO ASK QUESTIONS! Many people don’t like salespeople and real estate salespeople can be persistent. But the good ones pay attention to your needs and act accordingly. I answer calls, emails and texts. If you don’t want to be bothered by marketing just say so; I don’t send unsolicited marketing but I know some do. They won’t if you tell them not to. The goal is to find you the ideal home for your family or to get the best market price possible from your home. Realtors who list your property for you collect their fee from the seller, but not until you sell. If you are looking for a home, it costs you nothing to look. It costs you nothing to ask questions about your home’s value, about the value of homes you are considering buying, or about anything related to real estate sales.

We can help you sort through the tremendous amount of information to be found online about local real estate. Don’t make a possibly costly mistake by trying to figure the current market out on your own. An experienced Realtor can sort it out for you. I’ve been in the business for 34 years now and I feel like I have a grip on the market. 479-903-0328.

LInk to the original article at This City Has the Most Overpriced Homes in America | Best Life (bestlifeonline.com)

Bentonville Housing Numbers Update

It’s been a while since I’ve updated the numbers but now, what with Covid-19 more or less in the rear view mirror, let’s take a look at the Bentonville market. These numbers will reflect nearly all of Northwest Arkansas but I’m keeping with Bentonville as the prime example.

There are currently 79 listings, 69 of which are below a million dollars. The least expensive listing today is $249,500 which is an astounding number and reflects the lack of listings on the market vs. the number of buyers. Of course it’s a seller’s market as we are all acutely aware.

Average price per square foot is $260 on properties less than a million; I exclude these because in many instances they include acreage or properties better suited for commercial/residential. The median is $209 per square foot.

Pending sales are at an average of $160 list and sold listings over the last six months are at $155 per square foot.

Looking at the pending sales over the last 30 days the average price per square foot was $157.

The explanation for all of this is that there are a number of homes on the market that are priced far above market in hopes that someone will come along and pay the price.

33 of the homes have been listed in the last month, 12 between 30 and 60 days ago, and 10 between 60 and 90 days ago, and the remainder - 14 - being listed over 90 days ago. Average days on the market of Bentonville listings is 61 and median is 33.

What does all this mean then?

It means that there are 36 homes that are priced above market enough that they are hard to sell in a hot market. The median price of homes listed in the last 30 days is $177 per sqft which is slightly above the average pending sales but the median reflects more accurately the actual market value than the average, which is skewed by higher price-per-square-foot homes.

The lesson here is that, sure, you can buy a home on your own. You can list your home yourself too, it’s easy to do and quickly sells. But - you are far better off with an agent on both ends. Your agent can tell you, or should be able to tell you, minute by minute market stats and housing availability. If you are buying you absolutely need an agent to be watching the market constantly for homes to be listed that will suit your needs. I can guarantee if you are looking at a third party real estate site you are getting stale information. What they don’t tell you are of the number of homes that agents are aware of that are coming on the market soon or have just been listed. In a market this hot you have to have help if you don’t want to make a mistake. Remember, when you use an agent,. at least at Bentonville Real Estate, it costs you nothing to be represented by an agent. Commission is collected from the seller, not the buyer.

If you are selling you may well be able to determine market values on your own. But agents have vast resources at their fingertips that allow you to price your property at market instead of guessing what it should be based on what you to believe to be a valid comparison. We also take care of things such as advertising and disclosure. Did you know that you can be liable for your advertising? That you can be held liable for non-disclosure of salient issues with your home? A real estate company can be expensive but is the safest way to market your property correctly and at an accurate price point.

Those who know me know that you can call me any time, 479-903-0328 or 273-2684. I answer promptly. Or email questions or requests to bentonvillerealestate@Hotmail.com. I serve all of Northwest Arkansas.

Bentonville Housing Market - Bentonville and Northwest Arkansas - What a Difference a Few Months Makes

I’ve been going through and reviewing the data from the last several months. As most people know, Northwest Arkansas is in the midst of the largest seller’s market I’ve seen in 33 years in local real estate.

December, 2018 figures are shown for comparison:

Total Bentonville residential listings - 507 Bentonville

sales last 30 days - 97 6 months sales - 812

The lowest price in Bentonville is $133,000

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

Today, there are 117 listings in Bentonville. The lowest price is $165,000. Unless my math is wrong, that’s a 77% drop in the number of homes available on the multi-list over the course of 22 months. Average sold price per square foot is $146 per sqft over the last six months but that includes the more expensive downtown homes. Taking those homes out of the equation leaves us still at $137 per sqft average sold price.

Development is moving along at a fairly quick pace but much of the new home construction is occurring outside of Bentonville in Centerton and the surrounding area. That leaves us with fewer homes available in the Bentonville specific market area.

Centerton has 53 listings currently with 455 sold in the last 6 months and the larger subdivisions are rapidly selling out.

What have we learned?

1. Fewer homes available means higher prices obtained for sellers. Buyers are paying a premium.

2. The time is perfect to sell your home, business or development property. Many factors play into the development of a piece of land but prices are at an all-time high.

3. If you are considering selling, make sure you have someplace to go. Agents may not make this readily clear since there are a tremendous number of agents fighting for the same listings. It’s all well and good to sell your home for a profit but the limited supply available means you must be looking for a home now, before you commit to selling. Apartments are at a 95 to 98% occupancy rate and the rental market is slim. There are 67 homes for rent in Bentonville but only 5 are below $1100 per month.

4. Homes that are available often have multiple offers and sell for thousands above list price.

5. Bentonville and Northwest Arkansas will NOT slow down in development! Unless something catastrophic happens - and hey, 2020 has been nothing but the country being on the brink of catastrophe - this market will continue to grow by leaps and bounds due to the influence of the largest retailer in the world. Bentonville and Northwest Arkansas is being remade into a paradise for good living - trails, biking, restaurants, upscale activities, clean and safe cities. As the old movie says, “if you build it, they will come.”

Call me if I can help you sort things out. Maybe you just need advice or maybe you want to buy your dream home or sell the family farm. I can help. 479-903-0328

Real Estate in a Time of Social Distancing

WHEW! We are recognizing what a difference a month makes and how your life can change nearly overnight! You can go back and compare the last month’s numbers with this month’s and see the changes. These numbers are for Bentonville only, which is my primary market. If you want numbers for your city, please email or text me.

1. There are currently 202 homes for sale with Bentonville addresses. Average list price is $553,189 and the median is $409,900. Keep in mind that the large number of homes listed above $500,000 greatly swings the average home price upward. If you remove the homes above $500,000, the average home price drops to $346,457 and the median is $347,450. That price is much closer to the real average of homes in Bentonville.

2. There are only five homes listed below $200,000; 67 homes between $201,000 and $350,000; 60 between $351,000 and $500,000; 44 between $501,000 and $750,000; 9 between $751,000 and $1,000,000; and 17 that are over $1,000,000.

3. The 139 listings which have gone under contract in the last 30 days are 31 under $200,000; 55 from $201,000 to $350,000; 37 from $351,000 to $500,000; 11 from $501,000 to $750,000; 4 from $751,000 to $1,000,000; and only 1 above $1,000,000.

4. I’m not listing what has closed because they were already under contract prior to the virus.

5. Something that I think is relevant to the conversation is the number of contracts that are “falling out” or being cancelled for whatever reason; this can be from fears over the virus or a bad home inspection, there’s really no way to determine this. That number for the last week is 8. If you want to extrapolate this out, it’s about 35 a month. I’m guessing that this number will increase by the week.

6. Listings by week - last week, there were 18 homes listed in Bentonville. 31 went pending, and 20 sold.

What can we determine from these numbers?

1. There has been an increase in listings this month of 13

2. Your home that is listed between 0 and $350,000 is quite valuable; the market is still incredibly volatile in that range. The $350,000 to $500,000 range is also good.

3. Home are selling. The market is skittish but not nearly as affected as other bigger markets. People are still coming to Bentonville and they will continue to come as long as Wal-Mart needs them here.

4. Realtors are still working, albeit now from home. They are still listing and selling, they can still show homes and close escrow. There are safety precautions that we can take in order to show you homes, be it online or in person. Your home can be just as easily listed this month as it was last month, and remember - most people shop online to find the right home first. We can get your home listed and marketed with ease. WE ARE NOT AFFECTED and will continue to serve you as needed.

So, in conclusion, Northwest Arkansas is FINE - so far. The real estate market continues to boom. Agents continue to work. If you need me, give me a call at 479-903-0328 or email me here.

Stay home and practice social distancing! This will begin to hit home as people you know are affected by the virus. Don’t panic, stay safe, and wash your hands. By next month, this post may look different, but it will soon go away and we’ll need to be back to business as usual as soon as possible. We’re here for you and looking forward to the purchase of your new home or sale of your old one.

Bentonville Sales Figures February 28, 2020

I used to write these more often, especially on Facebook, trying to provide information to my clients. I have decided to post them here instead and link to it.

These figures are for the Bentonville market; if you live outside Bentonville, just drop me an email and I’ll provide the information you need.

The market here is just jaw-dropping, especially if you have been here for a while. The numbers continue to climb, and according to the experts, it will continue to do so.

There are currently 179 homes for sale in Bentonville today. The breakdown of listing and sales figures is as follows:

Price #currently listed #sold per month absorption rate - months of inventory

100,000-200,000 4 41 10 per week

200,000-349,000 59 80 3 weeks

350,000 - 499,000 60 33 2 months

500,000 - 749,000 27 13 2 months

750,000 - 999,000 13 3 4.5 months

1,000,000 + 15 1 15 months

Here are the average and median prices per square foot, listed and sold. Remember, median is exactly in the middle of all prices and average is adding all together and dividing by the total number

listed ave/median sold ave/median

100,000-200,000 140/142 116/115

200,000-349,000 146/134 130/125

350,000 - 499,000 168/140 138/133

500,000 - 749,000 236/180 167/154

750,000 - 999,000 233/234 193/191

1,000,000 + 615/247 190/196

So what does this tell us?

1. Homes under 200,000 sell nearly immediately. Average days from list to close is 49. That’s fast. Anything under 175,000 will usually never make it 24 hours.

2. Homes over 1,000,000 are hard to peg. The market is vary narrow and the prices shown reflect differences in acreage size and location.

3. Homes between 200,000 and 350,000 are in demand. “Selling like hotcakes.” How well do hotcakes sell? The market has the ability to turn over every three weeks.

4. Homes in the 350,000 to 750,000 range sell pretty well. We have two months’ inventory, which is not a lot. Not as brisk but still good.

5. 750,000 to 999,000 has few listings and take a little longer to sell, as the market is narrowing as you go up in price.

What have we learned?

If you own a home in Bentonville and your home is in the 100,000 to 200,000 range, don’t sell it short. You make take a chance on it not selling immediately, but what’s that chance worth to you? Would rather sell it the first day or maybe price a little higher and sell it next week and make more money? When an agent shouts on social media, “SOLD IN 24 HOURS!!” what does that tell you? It’s a seller’s market, not a buyer’s market. If it sold in the first few hours, it was priced too low. Every. Single. Time. If you have too much money, send some my way. But I’ll bet you’d rather keep it in the family.

If you are considering listing your home or considering buying a home, give me a call. There are nearly 3000 agents in Northwest Arkansas but few of them have the 33 years experience in Northwest Arkansas real estate. Don’t hesitate to ask for help. Advice is free. 479-903-0328

The New Book is Here and I'm Excited!

I’m so happy to be done with the book! Copies are available from me, here in the office, or by purchasing online. The books are $25 and I can ship anywhere in the US for $5. I think you’ll be happy to learn of the history of our little town! Just email me and pay through PayPal, Venmo, check or cash. llhorton@Hotmail.com

Sold! - New Listing $149,900 Not Far From Downtown Bentonville

I have a listing coming up in late May, 1244 sqft 3 BR 2 bath, garage has been made into a heated and cooled room, nice patio and privacy fenced back yard, clean and well-kept and just a few blocks from downtown Bentonville. If you want to get on the list to take a look or even if you have an agent who wants to be ready to look, call or text me at 479-903-0328. I’ll get you in as soon as I’m allowed.

Sold! - 1776 sqft on nearly an acre, in Bentonville, $205,000 MLS #1110091

Tough to find .99 acre lot in Bentonville just minutes from downtown and only a couple blocks from Climb and the new Bentonville Brewery…and Aldi’s is at the end of the street. 3 bedroom bath and 3/4 home with a big native stone fireplace, built-in china hutch, granite counter tops in the kitchen, large utility room, storage building. The owner has just moved out and it is ready for your personal touch. Call me at 479-903-0328 if you would like to take a look.

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

Keep in Mind...

I have a house that's not listed that's in North Bentonville, agent owed, nice corner lot with trees, landscaping, lawn irrigation, etc... House is 1825 sqft, 3BR 2 bath, plantation shutters, crown molding, recently remodeled kitchen, HVAC is 3 months old. Let me know if you are interested...

903-0328

Business Insider, Bentonville and the Walton Family

Every time I see a national news site speak of Bentonville, I love it! Free advertising in a national market The article below is from Business Insider. 

https://www.msn.com/en-us/money/companies/see-all-of-the-changes-walmarts-wealthy-founding-family-has-brought-to-its-hometown/ss-BBKaSKb?ocid=spartanntp#image=1

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