Hot housing market in Arkansas driving up home prices
The housing market is hot right now in Arkansas with homes on the market less than 24 hours and bidding wars becoming the norm in some neighborhoods. (KATV)
LITTLE ROCK (KATV) — The housing market is hot right now in Arkansas with homes on the market less than 24 hours and bidding wars becoming the norm in some neighborhoods.
"I'll be honest, in 21 years, I haven't seen it like this. This is insane," said Charlotte John Co. Realtor Jonie Burks. "I'm seeing not enough houses to go around for the buyers that want to buy."
It's a trend no one anticipated in the midst of a global pandemic. President of the Arkansas Realtors Association Carolyn Cobb says the combination of folks spending more time at home and historically low interest rates is driving sales up by more than 15% over this time last year.
"It's almost free money. It's three-percent if you have a good credit score or even a little bit lower sometimes on a conventional loan. The interest rates have kept our market really strong," said Cobb.
Burks is warning her sellers to be ready for a quick move when they list.
"If they're under $350,000, you better get ready. You better have a place to go," said Burks.
The sudden jump in sales prices is causing some problems. Comps in some neighborhoods haven't caught up which can cause issues with appraisals.
"Part of the process of purchasing a home is being sure that it appraises for the price that you offer, and that's just what we get into with this type of market.," said Cobb.
Realtors are advising buyers to make the first offer strong in hopes of staving off a bidding war.
"It's important that you have someone on your side. You need to make sure that you have the right offer to win because you are in a bidding war a lot of times. We are talking about 2, 3, 4,,,up to 7 offers," said Burks.
Another change agents are reporting is what buyers are prioritizing in homes these days. Kitchens have always been a big ticket item, but now outdoor living spaces and home offices are what folks are looking for in their new home.
The Arkansas Realtors Association is hosting its annual convention next week virtually. The hot housing market and taking advantage of technology will be the main topics of discussion.
