NWA house prices rise as supply plunges
Housing prices are rising and supply is falling.
What is happening: The semi-annual single-family and multi-family residential horizon reports for the first half of 2021 were released to the media on Monday.
Stay on top of the latest market trends and economic information with Axios Markets. Subscribe for free
In numbers : Average home prices in Northwest Arkansas rose 16% year over year, to over $ 306,000. At the end of June, only 607 homes were for sale on the Multiple Listing Service, the lowest number since 2012.
Benton County issued 1,720 building permits and Washington County issued 984 in the first half of 2021.
For the same period, the vacancy rate for multi-family properties in the NWA fell to 3.4% from 4.8% a year earlier.
The average monthly rental rate for a multi-family unit at the end of June was $ 768.48, up $ 27 from the previous year.
Source: Arvest Skyline Report. Graphic: Axios Visuals
Why is this important: As house prices and rents rise, it becomes more difficult for low-income people to afford housing or build personal wealth from their home equity.
The context: Arvest Bank is sponsoring the reports, which focus on residential and commercial real estate in Benton and Washington counties. The Commercial and Economic Research Center (CBER) at the University of Arkansas completes the research.
What they say : Mervin Jebaraj, Director of CBER, said: “As a region we have to face the fact that housing costs are rising faster than incomes.
Senior real estate broker Aaron Peters told Axios that multiple buyers line up for every property listed, and many are offering more than asking price with no surprises.
What to watch: The Skyline Commercial Real Estate Report, which gives a breakdown of retail, office and warehouse space in the NWA, is expected to be released in about three weeks.
More from Axios: Sign up to get the latest market trends with Axios Markets. Subscribe for free