Arkansas
Housing Market
The housing market in Arkansas constantly evolves with shifting home prices and demand. Houzeo’s Housing Market Arkansas Report tracks the changes in supply and demand across the Natural State. Our report offers real-time insights to help you make informed decisions.
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MigrationArkansas Housing Market Overview
As of January 2025, the prices of houses for sale in AR have grown 7.5% YoY. This constant increase indicates the strength of the housing market. Currently, Arkansas’ median home price is $255,900. The number of homes sold also increased by 8.7% YoY.
The median days on the market further show the market's competitiveness. Homes in Arkansas now spend 61 days on the market before going under contract—an increase of 7 days. These metrics collectively shape the current Arkansas real estate market.
What Does It Mean for Home Buyers and Sellers?
The median days on the market further show the market's competitiveness. Homes in Arkansas now spend 61 days on the market before going under contract—an increase of 7 days. These metrics collectively shape the current Arkansas real estate market.
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: You have limited power to negotiate. The mortgage rates fluctuate around 6.92%, and the average home price in Arkansas is increasing. These factors are squeezing your buying power. Nevertheless, homes for sale in AR now take 61 days on market before going under contract. This brings hope that the market could soon start to favor buyers.
- If You’re a Seller: The growing prices can benefit you since the number of homes sold has increased by 8.7% YoY. This indicates a growing demand for houses for sale in Arkansas. Arkansas real estate’s current situation can benefit you more than it can help buyers.
Median Sale Price
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Arkansas Housing Supply
Arkansas’ housing supply will grow as new construction expands. In January 2025, the number of homes for sale in Arkansas rose by 15.3% YoY, with around 14k properties currently available. With 5 months of supply, the market is balanced. Fewer months of supply point to a seller’s market, while more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: An increasing median home price in Arkansas indicates that AR is a seller’s market. Nevertheless, the 5 months of supply, increasing inventory, and growing number of AR houses for sale show that the market is now finding balance. You will soon have more bargaining power while buying a house in Arkansas.
- If You’re a Seller: You must act fast and sell your home before more inventory hits the AR real estate market. If that happens, buyers will have more choices, there will be less demand, and property prices will drop. Focus on staging and marketing your Arkansas home to attract buyers before the market situation changes.
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Arkansas Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, 12.3% of homes sold above the list price, while 22.9% of homes saw price reductions. The 97% sale-to-list price ratio indicates strong, profitable sales for sellers.
What Does It Mean for Home Buyers and Sellers?
In January 2025, 12.3% of homes sold above the list price, while 22.9% of homes saw price reductions. The 97% sale-to-list price ratio indicates strong, profitable sales for sellers.
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: The Arkansas real estate market, currently in transition, works to your advantage. With 22.9% of homes experiencing price drops—up by 4 percentage points YoY—home buyers in Arkansas have increased negotiation power. However, the current high mortgage rate of 6.92% may make purchasing a house more expensive.
- If You’re a Seller: With only 12.3% of homes being sold above the listing price, you could find it challenging to make a considerable profit. In fact, the transitioning market has already started to favor home buyers in AR. Nevertheless, if you market your home strategically, you can still negotiate enough to sell your home for a reasonable price.
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Seller’s Market
Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.
Is It a Buyer’s or Seller’s Market in Arkansas?
As of January 2025, Arkansas real estate is mostly benefiting home sellers. Demand is increasing, and so are home prices. However, the current mortgage rate of almost 7% hampers buyers' interests.
Nevertheless, the market will soon start to balance. The 17% rise in new home listings provides newer options for home buyers in Arkansas. Additionally, more homes are selling with price drops than those selling above their listing price. However, these trends may vary within Arkansas’ diverse real estate markets. Check your local real estate trends before deciding to invest.
Arkansas Housing Market Insights
The transition the Arkansas housing market is undergoing is slower than the nationwide market. Nevertheless, the average home price in Arkansas ($255,900) is rising quicker than the US market ($418,478). The Arkansas housing inventory trends indicate an increasing number of homes for sale. This number aims to balance out the growing demand in the Natural State.
Housing markets like Bentonville are highly competitive. Homes in Bentonville spend around 25 days on the market before going under contract. Meanwhile, cities like Little Rock show a different trend, with median days on the market at 84. The sale-to-list price ratio of 97% and 12.3% of homes selling above the asking price indicate that the market is starting to balance out. Overall, the Arkansas real estate market favors home sellers. So, if you plan to buy property in Arkansas, you must wait until the prices drop.
Housing markets like Bentonville are highly competitive. Homes in Bentonville spend around 25 days on the market before going under contract. Meanwhile, cities like Little Rock show a different trend, with median days on the market at 84. The sale-to-list price ratio of 97% and 12.3% of homes selling above the asking price indicate that the market is starting to balance out. Overall, the Arkansas real estate market favors home sellers. So, if you plan to buy property in Arkansas, you must wait until the prices drop.
Nationwide Migration Trends
Arkansas was the US's most moved-to state in 2024. Compared to all other states, Arkansas had the highest percentage (65%) of inbound movers. In fact, since 2023, the Natural State has been a prime choice for inbound migration.
The cost of living in Arkansas is 90.3, which is lower than the national average. People migrate to Arkansas because of affordability, growing job opportunities, and the desire for a good quality of life.
The cost of living in Arkansas is 90.3, which is lower than the national average. People migrate to Arkansas because of affordability, growing job opportunities, and the desire for a good quality of life.
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Frequently Asked Questions
How have home prices changed in Arkansas over the past year?
Driven by high demand and low inventory, the median home price in Arkansas has risen at a rate of 7.5% YoY. Multiple regions in Arkansas have witnessed a considerable double-digit percentage growth. To know how much your home is worth, use Houzeo’s free home value estimator.
When will house prices drop in Arkansas?
The prices of houses for sale in Arkansas are expected to drop slightly in the second half of the year. In January 2025, statewide prices rose by 7.5% year over year. Markets like Bentonville and Hot Springs saw significant price gains. However, experts forecast that growing inventory will soon balance the market.
What’s the average home price in Arkansas?
The average home price in Arkansas is $255,900. However, it varies depending on the type, size, and local market conditions. It typically ranges from $256,000 for single-family homes to $281,800 for condos. If you’re looking for more affordable housing, here are some of the cheapest places to live in Arkansas.
What are the AR housing market predictions for 2025?
The AR real estate market is expected to stabilize in 2025. Currently, it is in favor of home sellers. Nevertheless, the increase in new home listings and extended days on market will soon turn the tables. While the rising mortgage rates could limit the buyers’ powers, the market situation will still change because more options will help reduce demand.
Is this a good time for selling or buying a home in Arkansas?
It is currently the best time to sell a house in Arkansas. Sellers can benefit from high demand and rising prices. However, if the mortgage rates stabilize, it will be the best time to buy a house in Arkansas.
How does the Arkansas housing market compare to the national market?
The housing market in Arkansas is slower than the national market. It is currently shifting from a seller’s market to a balanced market. Despite high demand, an increasing housing supply in AR drives market prices below the national averages.
What are the steps for buying a home in Arkansas?
The first step for buying a house in Arkansas is to have a clear idea of your budget and a mortgage pre-approval. Buyers should then search for homes for sale in Arkansas, submit offers, secure loans, and complete the closing process.
How can I list my home for sale in Arkansas?
You can list your home for sale with a Flat Fee MLS Arkansas listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for home buyers in Arkansas?
The average mortgage rate for buyers in the AR housing market fluctuates between 6.08% and 6.92%. It depends on the market and the borrower's credit score. Always check current rates with lenders.
What is the average cost of living in Arkansas?
Arkansas ranks second on the list of states with the lowest cost of living. It is 14% lower than the rest of the US. A typical single-family home in Arkansas costs $256,000, with regional price variations. You can check your local region’s cost of living using our free cost of living calculator in Arkansas.
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