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Home Values In Northwest Arkansas On The Rise

FAYETTEVILLE (KFSM) – Home prices in Northwest Arkansas have continued to increase year over year, according to Zillow, an online real estate database. Ne...

FAYETTEVILLE (KFSM) - Home prices in Northwest Arkansas have continued to increase year over year, according to Zillow, an online real estate database.

Nearly eight years after the housing collapse that devastated communities around the county, Northwest Arkansas has rebounded, with new construction popping up throughout Washington and Benton Counties.

Dale Carlton, principal broker at Carlton Realty in Fayetteville, attributed a thriving economy to giving the local housing market a boost.

"It's really good. People are moving in because Walmart, J.B. Hunt, Tyson and other people who work with them as vendors," said Carlton. "They bring a number of people here, including the University of Arkansas."

The average price for a home posted for sale in February 2016 in the Fayetteville Metro, which includes the Northwest Arkansas region, is $148,000, which is a five-percent increase from February 2015.

The demand has resulted in prospective homebuyers having to settle on what they're looking for in a new house, according to Carlton.

"Sometimes they're having to sacrifice some of their preferred desires in order to find the right home," said Carlton. "Because the availability of homes and the reduced inventory we have is affecting the market."

Some home values in Northwest Arkansas have topped pre-2008 levels, including in the city of Bentonville where the average home is priced at a record high $172,300.

Another housing bubble is not expected in the region as long as population growth continues to remain steady, Carlton said.

"As long as the demand is there," said Carlton. "The growth is there, and if we don't get ahead of the market as we did in 2006 and 2007, building more houses than there were people looking for those houses, we should be okay."

Zillow has estimated that home values are expected to rise 2.8 percent in the Fayetteville Metro by February 2017.

Carlton also issued tips for people in the market for a new home:

  • Act now - If you see a house you want or are interested in, don't hesitate. There could be someone else interested in the same location and they could act quicker than you, Carlton said.
  • Make a list - Compile a list of your needs vs. wants. Carlton recommends focusing on your needs. Doing so could help you narrow down to a home that most suits you.
  • Check interest rates - Carlton urges renters to look into financing a 30-year mortgage while interest rates remain low.

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