Arkansas Real Estate: Bracing for a Spring Surge?

For years, Arkansas' real estate market followed a predictable seasonal pattern. The months of March through May were reliably the busiest, with homes listed in early spring selling at higher prices.

Then, COVID-19 happened, disrupting everything.

The seasons we could usually depend on went out the window. Suddenly, any time was a good time to sell. Home prices soared, and competition among buyers was fierce. Of course, this boom wasn’t sustainable, and it was soon followed by a market correction. And then the spring market of 2023 didn't conform to the old seasonal norms. Instead, we saw brief periods of increased activity and rising home prices, followed by declines. The spring of 2024 followed a similar pattern. Early listings in February attracted multiple offers while those in March stayed on the market, due to rising interest rates and increased competition. It was a bit like a roller coaster.

Don't Be Fooled by a Fleeting Spring

We also saw Arkansas experience a surge in popularity. It seemed as though the best-kept secret was out, and suddenly people wanted to move to Arkansas from all over the country. This drove demand and home prices up rapidly. But, we’ve seen the pool of potential homebuyers shrink due to affordability issues (higher interest rates, slower job growth, and return to office mandates eliminating work from home opportunities). This reduction in buyer demand has led to increased inventory.

Many homes that didn't sell were either held off the market, rented out until the market improved,, or were being sold through off-market avenues. We expect a lot of these properties to be relisted on the MLS this spring, creating a potential surge in inventory.

A Wave of Homes Is Coming

What does this all mean? The Arkansas real estate market is facing a potential flood of new listings. While the exact number of homes is difficult to estimate, all evidence points to large number of homes waiting to be listed.

This means that buyers who aren't working with an agent who has access to homes on the private market may miss out on a lot of potential homes

Good for Buyers, Challenging for Sellers

This expected increase in inventory is great for buyers, offering more choices and negotiating power. Sellers, on the other hand, may face challenges selling their homes quickly and at the amount they feel their home is worth because of increased competition. Listing early, before the surge, could be a big advantage

Navigating the 2025 Arkansas Real Estate Market

The Arkansas real estate market is changing. Here's what to expect for single-family homes:

• A smaller percentage of homes are receiving multiple offers compared to the peak of the market.

• Homes are taking longer to go under contract, giving buyers more time to make decisions and sellers needing to prepare for a longer marketing period.

• Sellers may need to make price adjustments to attract buyers, while buyers may have opportunities for negotiation.

• Updated and move-in-ready homes are highly desirable, with buyers willing to pay a premium for them.

Advice for Sellers

With a potential surge of homes hitting the market, sellers should:

1. Price Strategically: Set a competitive listing price based on current market conditions.

2. Update and Stage: Ensure the home is updated and appealing to buyers.

3. Be Flexible on Price: Be prepared to make price adjustments to attract offers.

4. Be Patient: Understand that the selling process may take time.

Advice for Buyers

Buyers in the coming months should:

• Work with an agent who has access to off-market listings.

• Take your time and explore all available options.

• Negotiate favorable terms.

Ride the Wave

While the future of the Arkansas real estate market is uncertain, understanding the current trends and potential challenges can help both buyers and sellers make informed decisions. Whether you're looking to buy or sell, working with an experienced real estate professional can make the difference in the coming year.

If you are planning to buy or sell in 2025, now is not the time to go it alone! You need an experienced Realtor on your side. Live Love Arkansas is here to help you in anyway we can. Give us a call today at (479) 747-2466, and let’s talk about your Real Estate goals.