Bentonville, Arkansas, is the tenth largest city in the state, comprises 13 neighborhoods, and has a population of 44,499. According to the Northwest Arkansas Regional Planning Commission, this number will rise to over 65,000 by 2030! Many factors contribute to this increase, and here are some of the current real estate trends in Bentonville:
- Median house prices on the rise
A recovering economy and stronger demand have caused median house prices in Bentonville to increase by 8.1% in 2017. Currently, only 3.9% of Bentonville residents are unemployed and the per capita income in the city stands at $35,000, translating to an annual income of $71,941 for a family of four. This means that more people are getting better jobs and advancing a financial position where home buying is a real option.
- First time buyers stepping up
Although faced with endless challenges, first time buyers are increasing in Bentonville. First timers (those who have not owned a house in the last three years) currently make up 33% of total buyers in the city. This is a 3% rise over the last year, according to data from the National Association of Realtors. Mortgage giant Fannie Mac agrees with this assessment, showing that new purchases accounted for nearly 46% of all transactions between January and April 2017, an increase of 40% compared to the same period in 2016.
- Millennials finally ready to buy
Millennials are also making their mark on real estate trends in Bentonville. Born in the ’90s, this age group has often faced criticism for not making wise investment decisions. It’s no secret that most millennials are either renters or still live with their parents, but this is changing. When asked if they planned on owning a home soon, a majority of millennials said YES. Many of them are currently saving towards their dream home. Sooner rather than later, an influx of millennial buyers will enter the market.
- Mortgage Rates Are Rising – BUY NOW!
Mortgage rates have been decreasing in recent years. The historical low for a 30-year fixed-rate mortgage in Bentonville is 3.5%, a record set in December 2012. Today’s rates are just above that mark with some banks offering as low as 3.61%, which has encouraged prospective buyers to crowd lending facilities.
- Refinancing on the rise
With these low lending rates, the number of people refinancing has risen sharply. According to the Mortgage Bankers Association, refinance applications surged 21% in July and are expected to increase even further. A 30-year fixed mortgage five years ago likely charges 4.5% interest. Even home owners who refinanced a year ago pay in the range of 4.19%. Refinancing today could reduce interest payments by between 0.5 and 1.0 percent, which can save owners hundreds of dollars each year.
Ready to buy or sell?
The Burnett Real Estate Team prides on getting our clients the best value! Whether you’re buying or selling, you can depend on us to strike gold even in the most competitive market. Contact us today at 479-657-6642 and let’s get that deal done.