Northwest Arkansas (NWA) house prices continue to rise, albeit at a slower rate than the national average. According to data from Federal Housing Finance agency, house prices in the region rose approximately 12% in the last year, with Zillow predicting that the prices could go up even further by the close of the year.
This brings the median home price in the region to around $189,700, translating to a median value of $143 per square foot.
Appreciation Across the Board
Single family detached homes are the most common housing type in NWA, accounting for 64.7% of the region’s housing units. The second most common type of housing in the area is large apartment complexes or high-rise apartments, which account for 20.2% of housing units. Duplexes, homes converted to apartments, and other small apartment buildings account for 8.9% of houses while other attached homes make up about 4.5% of total houses.
In terms of size, most of the homes in the city (41.1%) are three-bedroom followed by two-bedroom (26.3%) and then four-bedroom houses (18.5%). One-bedroom houses make up 7.3% of the properties; homes with five or more bedrooms account for 4.7% of the properties, and those with no bedroom make up 2.2% of the properties.
Whether you’re a seller or a buyer, it is also important to note that most of these homes (47.9%) were built between 1970 and 1999. A good number (41.5%) were built between 2000 and today, while the rest were built earlier than 1970.
Unsurprisingly, appreciation has been recorded for all these types of homes over the past ten years. The cumulative appreciation rate of home prices over the past ten years has been 5.6%, equating to an annual increase of 0.55%.
Reports indicate that appreciation rates are so strong in the area that despite a nationwide slow-down in the housing market, NWA’s real estate has continued to boom. Over the last 12 months, for example, home prices in the area appreciated faster than 90% of country. And, in the last quarter, NWA homes appreciated by a whopping 3.7% which translates to an annual appreciation of approximately 13.71%.
For more information, visit: https://www.neighborhoodscout.com/ar/bentonville/real-estate
A Case-by-Case Situation
While there has been a general appreciation in house prices in the state and by extension the various cities in the NWA region, figures vary from one area to another. For instance, since 2000, Bentonville and Fayetteville have posted the highest appreciation in home prices in the area.
According to data gleaned from leading real estate resources, the median house price in Bentonville currently stands at $188,600, up 8.5% over the past one year. This has partly been attributed to the unique positioning of the city as well as the rising demand for houses. The median home price in Fayetteville is also around that mark ($188,300), having gone up 6.5% in the last 12 months.
Within individual cities, different neighborhoods have also posted different appreciation rates. In Bentonville, for example, North Walton Blvd./West Central Ave. remains the fastest-appreciating neighborhood. In Fayetteville, Lakewood Drive and the Drayton Road neighborhoods have appreciated the most in the past decade. It’s important to dig deeper in order to understand trends in the specific neighborhood you’re dealing in.
We Know Northwest Arkansas
The Burnett Real Estate Team has been working in NWA for decades, and we’ve helped hundreds of people buy and sell homes in this region. If you need help analyzing these figures or need advice on pricing issues, just contact us at 479-657-6642.