story by Kim Souza
ksouza@thecitywire.com
The cost of owning a home in Northwest Arkansas continues to rise as steady buyer demand outpaces the supply of properties for sale. Realtors in Benton and Washington counties sold 785 homes valued at $152.705 million, according to MountData.com, up 19.3% compared to May 2014.
Rising home prices pushed the cumulative sales volume up 20.3% from May 2014. The median home price in May was $160,500 in Benton County and $160,000 in Washington County.
Paul Bynum, analyst with MountData.com, said the local market’s home supply at 4.7 months favors sellers and rising prices. A balanced market according to Bynum is a 5- to 6-month supply of home inventory.
Through the first five months of 2015, agents in the two counties have sold 3,068 homes for a cumulative value of about $591 million, up 14% and 21% from last year, respectively, according to Bynum.
He said the market is reeling from an active buyer pool has pushed the year-to-date median homes price to $161,500 – up more than 10% compared to the same periods in 2014 and 2013.
BENTON COUNTY BOOM
Unit sales in Benton County are up nearly 11% through May, and total sales volume rose 20% because of higher home prices. The median home price in Benton County this year is $164,000, or $88.80 per square foot. Prices have risen 11.65% and 6.22%, respectively.
Nicky Dou, a broker with Keller Williams in Bentonville, said increasing prices are a partially the result of supply and demand in the new home market. She said higher building costs with new construction also push prices up and existing home sales are benefiting because there are not that many resale homes available in the most popular neighborhoods.
Dou said the Hyde Park Subdivision in Cave Springs is one area selling well this year.
“The spec homes are selling before they are finished and I have sold several re-sale homes in Hyde Park, too. I sold one recently that was a one-year-old home that the sellers were able to sell without losing money even after closing costs which is incredible and not too typical,” Dou said.
“I have several clients in Hyde Park that are selling and purchasing a larger home within the Estates Phase which are larger than the main phase. This neighborhood features a community pool, park, trails and even a community garden ... It doesn’t hurt that it's in the Bentonville school district,” she added. " I have 3 resale homes that I just listed. When I started selling homes for the builder in Hyde Park in 2013 the prices for new homes were $108 a square foot and now they are $118 to $121 a foot."
She said 2015 is shaping up to be another record year for many. In 2014, Dou earned the top selling agent award with sales just under $30 million. To date in 2015, Dou said with closed and pending sales she’s already at $26.5 million.
JOBS SUPPORT DEMAND
Stephen Brooks, an agent with Keller Williams in Fayetteville, said the summer also is sizzling for home sales in Washington County. Brooks attributes the growth in regional home sales to the ongoing new jobs added each month and the population increases.
Kathy Deck, director for the Center for Economic Research at the University of Arkansas, said recently that the 25 people day being added to the local population reflects 1.9% annual growth. She said that is 2.5 times faster than the rest of country’s 0.75% average. Newly revised data from the Bureau of Labor Statistics indicates that 10,000 new jobs were created in Northwest Arkansas last year.
“We are growing at rates you can only dream about for several years,” Deck said. “Jobs are growing at the 2004 to 2006 rates in the local region.”
Brooks and other agents said sense the exuberance in the minds of buyers, but this time there is not a housing inventory glut looming.
“There are plenty of folks looking to buy soon or now while interest rates are still very low. Interest rates have slowly rising over the past month and I think people are realizing they don’t want to miss the window of opportunity,” Brooks said.
WASHINGTON COUNTY RALLY
Home prices in Washington County continue to rise thanks to growth around Fayetteville. Agents sold 1,141 homes in Washington County during the first five months of the year, up compared to 949 homes sold during the same period in 2014.
Year-to-date total sales volume rose to $212.428 million, up 26% from a year ago. The median home price of $159,975 is up 6.7% from a year ago. While the median home price is lower in Washington County than in Benton County, the price per square foot is higher at $91.90, according to MountData.com.
The new home market in Washington County is picking up steam after a slower start this year. Rausch Coleman Homes is building in southwest Fayetteville in The Coves subdivision at the $160,000 range. The nationally ranked homebuilder is also set to begin construction on another Fayetteville development just east of downtown in the Quarry Trace subdivision. This starter home community will feature an average of 1,488- square- foot homes starting at $131,500. Rausch Coleman is also actively building in east Springdale as well with a a starter home footprint.
Riggins Construction also is active in Fayetteville with higher price, executive-type homes in the Chapel View Subdivision on the east side of town. These homes average 3,600 square feet and list for $575,000.
BENTON COUNTY
Unit Sales (Jan.-May)
2015: 1,927
2014: 1,737
2013: 1,738
Sales Volume (Jan.-May)
2015: $381.283 million
2014: $319.616 million
2013: $318.215 million
Median Price (Jan.-May)
2015: $164,000
2014: $146.875
2013: $149,900
WASHINGTON COUNTY
Unit Sales (Jan.-May)
2015: 1,141
2014: 949
2013: 1,048
Sales Volume (Jan.-May)
2015: $212.428 million
2014: $168.433 million
2013: $178.877 million
Median Price (Jan.-May)
2015: $159,975
2014: $149,950
2013: $145,000