The Crazy Sellers Market in Northwest Arkansas!

Dated: July 31 2021

Views: 233

What makes our market so crazy right now and is something that is discussed frequently in the industry’s circles is the lack of available homes for sale. And the fact that there are far more available buyers than there are available listings. The supply is LOW, and our demand is HIGH. When you list your home, you will get a lot of attention. And in Northwest Arkansas we tend to see multiple offers with any listing under $400,000. Hopefully life will continue to normalize after the C-19 pandemic, but we’ll likely see the market shift.

Many like to blame the pandemic on our inventory shortage but clearly, we can’t give The Virus ALL the credit. Yes, The Virus likely made many Sellers nervous about placing their home up for sale since having many visitors walk through their home could invite unwanted “guests”. However, the truth is that this low inventory has been expected for many years. Let’s dig deeper here and I’ll explain why now is still a great time to list!

Ground Zero of the Housing Shortage:

For the last 10 years or so there has been a slow decline of new homes being built. Coupled with the recent super low interest rates for the last few years that have driven the increasing buyer demand it has compounded the effects of this Seller’s Market.


Sam Khater, the VP & Chief Economist at
Freddie Mac says, “The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”

 

Check out this recent report from NAR that tells the same story. The construction of new homes has been on a steady decline for a long time yet prior to the 2008 housing bubble fiasco we saw an average of 1.5 million new homes every year! Now check out this graph from KCM that illustrates our issue we face today.

 

In this recent report NAR provides a plethora of supporting data to show the glaring gap of underbuilding in every major region of the country. “Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the NEXT 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year (approximately 550,000 more annually than the 1.5 million historical averages.) {page 5, paragraph 2}

 

What this report is telling us is that even if we build more and more new houses than the norm year over year, it’ll still take about 10 years to close the underbuilt gap! Does that mean this heavy sided Sellers’ Market is here to stay???

 

In our Northwest Arkansas housing market, we are starting to see an increase in new home construction. I’ve personally seen several new builders enter the area and start new subdivisions all over, which is awesome news especially for those buyers who are still looking after losing over and over in their multiple offer bidding situation. But newly constructed homes won’t be enough to fill the gap we face today and down the road. We really need to see more existing single-family homes hit the market if we want to ease the constraints we see in our supply today. That means those Sellers who have been on the fence about selling, among others, should start looking for a reputable agent to discuss a timeline to potentially list their home now to help combat the problem we face.

 

Personally, I have been monitoring the Northwest Arkansas supply month over month in 2021 and have noticed a slow and gradual incline in Active Listings (roughly 100 to 200 new listings each month). This is a clear indication that the market is about to shift! Great news for buyers, am I right?? As the market begins to shift and we see more and more homes hit the market we’ll see a gradual release of tension. But don’t expect this to happen quickly! We have a long road ahead of us. But at least we can see the light at the end of the tunnel.

 

What this really means for you, MR. & MRS Homeowner, is that as life begins to normalize, as inventory rises, and with your continued rise of equity now is an excellent time to sell and look for your next home!

 

My name is Jeremy Cupp and I’m the Executive Broker at Exp Realty Rogers and Team Leader for 12 Stones NWA. We’d be honored for the opportunity to be your Realtor to list your home. Contact me and my team today and we’ll show you how we can use the limited inventory to your advantage as a seller by creating a personalized marketing plan. We’ll also help you win your next bid to purchase your new home in Northwest Arkansas.

Call us today to schedule your Free 30 Minute consultation at (479) 326-7224!  

12 Stones NWA Brokered by eXp Realty Rogers
614 N 2nd Street, Ste. D, Rogers, AR 72756

 

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Jeremy Cupp

As a John Maxwell Certified Coach, Teacher, Trainer, and Speaker, I can offer you workshops, seminars, keynote speaking, and coaching, aiding your personal and professional growth through study and pr....

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