The residential real estate market in Arkansas’s two largest metropolitan areas are, on balance, harbingers of good news. According to the U.S. Department of Housing and Urban Development Office of Policy Development and Research’s 2025 Comprehensive Housing Market Analysis released in July, the central Arkansas and northwest Arkansas metro are enjoying good inventory and favorable market conditions, boosting home sales — if one can afford it.
The report looked favorably on the economy and sales market balance, which speaks to the ability to earn one’s mortgage payment, as well as enough homes for sale to meet demand. Profiling Little Rock, North Little Rock and Conway, the report noted there were four months of inventory, consistent with the national average, and total home sales remained flat, while the U.S. overall saw a 4-percent decline.
Average new-home sale price in those three communities was $319,400, a year-over-year decrease of 2 percent, while the average price of existing homes rose 2 percent to $253,200. Notably, HUD highlighted the market for affordability.
Becky Finney, executive broker at Keller Williams in Little Rock, said the market appears to finally be regaining its footing after the tumult of COVID-19 and its economic aftermath.
Becky Finney (Photo courtesy of Keller Williams)
“People ask all the time, ‘What’s going on?’ and I say that the market is basically correcting,” she said. “Things are still selling depending on price range and how well the home’s prepared for the market. More than ever, it is important that people not overprice their homes and that they present them well.
“If their REALTOR® has a good marketing strategy and those two things are in place, then a house is going to sell probably in that 60-day range and, at some price points, even less than that.”
By contrast, the Fayetteville-Springdale-Rogers market was more expensive and had less inventory but also much lower mortgage delinquency than its neighbors at the center of the state. In all, 10,000 homes were sold in the three communities, 1,350 more than the previous 12 months, or 16 percent, but below the peak of 13,600 sold during the 12 months ending in March 2022.
Average price of a new home in the area was $391,000, a 2-percent increase, while the average existing home price grew 3 percent to just more than $400,000. The inflated prices were, in part, due to tighter inventory, only 2.6 months’ worth, nearly a full percentage point off the national average.
Also worth noting is that unlike Little Rock-North Little Rock and Conway, the bulk of NWA sales fell within the $300,000 to $399,000 range and outpaced central Arkansas home sales in the $500,000 to $749,000 and $400,000 to $499,000 categories, respectively.
Market conditions do not only affect move-in ready properties being purchased by individual families but those that are being bought for investment purposes or to be rehabbed and used as income properties. Amber Wood, who has built that segment into a thriving part of her company, Mid South Realty in Little Rock, said when prices go up, they generally go up across the board, affecting even properties that appear to be on their last legs.
Amber Wood. (Photo courtesy of Mid-South Realty)
“There are definitely homes to be found, distressed and not quite so distressed,” she said. “There’s this kind of a middle ground with investors where sometimes a home is almost too nice to be able to add value. What we’re doing is we’re focusing more on those that we can do a lighter rehab to right now and putting those out for rentals and things like that.
“It’s a little hard on the really distressed properties right now. It’s cooled down a little bit, but those prices are still a little too high. Sellers are still expecting top dollar for their homes, material costs and labor costs haven’t gone down at all, and with interest rates where they are, it is making it harder for investors to be able to generate cash flow or turn a profit on a flip.”
Regardless of what part of the state a person is shopping and for what ultimate purpose, experts say certain fundamentals apply to both buyers and sellers to help ensure a successful transaction.
“I tell my sellers, one, they’ve got to release all emotions regarding that house and start looking at it through the buyer’s eyes,” Finney said. “That means it needs to be in excellent showing condition, OK? I always tell them less is more when you’re selling, so I encourage them just basically to make that house look as light, airy and empty as possible.
“For buyers, the first thing I do is have that buyer preapproved so that we know we’re looking in the right price point. I don’t want them just to randomly go out and start looking at three bedrooms, two baths because that can run from $30,000 to $3 million, and I want them looking appropriately. Buyers also need to keep open minds when it comes to going in and doing some updating or repairs. I tell them, ‘If you’ve got good bones, don’t be afraid of cosmetics.’”
Wood said in choosing an agent, give due consideration to the results the person has already achieved as a measure of how equipped and experienced they are to address the inevitable problems that come with any real estate deal. She said the best agents are ones that can stand firm and fight for a project when necessary while still offering good chemistry between themselves and their clients.
“When you hire an agent, forget about their cute photo or catchy tagline,” she said. “Think about what happens when you get into the middle of a transaction and need to solve problems. A good agent will save the deal and solve the problems before you even know about it. A good agent will fight for you even at the risk of ruffling feathers. A good agent will have contacts with contractors that will be honest and efficient and will also help you find a lender that fights just as hard as she does. A good agent will not let the other side take advantage of you.”
SEE THE FEATURE BELOW AND IN OUR SEPTEMBER 2026 ISSUE OF AY MAGAZINE
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