In 1836, Arkansas became the 25th state in the United States. The 29th largest state at 53,179 square feet, the Mississippi River makes up the eastern border. It was formerly known as The Land of Opportunity and is now currently known as The Natural State and is most noted as the home of well-known people such as businessman Sam Walton, musician Johnny Cash, and former president Bill Clinton. With 2,978,204 residents, Arkansas is the 33rd most populous state. Population growth is expected to grow by 5 percent between 2015 and 2025. The present unemployment rate is 3.9 percent. Job growth between December 2014 and December 2015 grew by 2.3 percent, through 2016 another increase of 0.3 percent has been recorded. The top employers are Wal-Mart Stores followed closely by the University of Arkansas. Find out more about the Arkansas real estate market in our report.
The 2016 Housing Market in Arkansas is stable with a 4.6 out of 10 rating from Zillow. The median list price is $115,000, median closing is $145,000, and the average sale price is $150,318. Housing market predictions forecast a 5.2 percent increase over the next twelve months. The real estate market sees a vast difference between real estate for sale and real estate for rent, 31,705 properties for sale versus 1496 properties for rent.
Influencing Factors for the 2016 Arkansas Real Estate Market
- The median home value of a house in the Arkansas real estate market, according to the Zillow Home Value index is $114,700. This is a 4 percent increase over 2015, and the increase is predicted to continue at approximately 3.5 percent through 2017.
- As of August 2016, the foreclosure rate is 0.79. This is 6 percent higher than July 2016 and 26 percent higher than the same time in 2015.
- Arkansas’s median rental price is $1070 per month. This price is 1 percent higher than the preceding year, 2015.
- The APR for a mortgage in the Arkansas real estate market commonly falls within the range of 3.26 percent to 3.35 percent, currently 3.33 percent. The average rate is 3.35 percent which is on target with the national average of 3.31 percent.
Best Places to Live in Arkansas
The capital of Arkansas is Little Rock; it is also the most populous city in the state with 199,500 residents. Thirty-nine percent of residents are single and the median age is 38 years. Along with some of the largest non-profit organizations, Little Rock is home to the headquarters for Dillard’s, Windstream Communications, Acxiom, Simmons Bank, Bank of the Ozarks, and Stephens Incorporated (a large brokerage firm). The state’s largest employer is University of Arkansas for Medical Sciences with approximately 10,552 employees.
The Little Rock real estate market is considered a warm market—favoring the seller. The rating from Zillow is less healthy, receiving only a 3.9 out of 10. Sixty-three percent of people own their homes. Zillow Little Rock lists the current home value at $130,400, a 3.1 percent value increase over the previous year (2015) and is projected to increase 3.4 percent through 2017. There are about 390 homes in some stage of foreclosure as of August 2016, 10 percent lower than July 2016 and 27 percent lower than August 2015. The median list price is $139,000, and the median closing price is $175,000. Trulia Little Rock lists houses with two or three bedrooms starting as low as $20,000 up to a five bedroom home in excess of $3 million. In addition to the 1971 homes for sale, there is an additional 233 properties for rent. The median rent is $1000 per month; Zillow’s rent index is $1084 (there is no change from the previous year). Trulia provides listings for one or two bedroom units around $500 per month up to three to four bedroom houses for over $2000 per month. Craigslist Little Rock has rental listings for mobile homes starting for less than $200 per month, two bedroom apartments for $300 and up per month, and two to three bedrooms furnished apartments and condos for $3000 to $5000 per month.
Fort Smith is the second most populous city in Arkansas with a population of 87,650 residents. Residents are a median age of 36 years and 38 percent are single. Located on the Oklahoma border, Fort Smith is known as a manufacturing center hosting such companies as Rheem, Trane, Georgia-Pacific, Gerber, Planters Peanuts, among others. The top employers in the city are Sparks Health Systems, Balder Electric Company, and OK Foods. The Fort Smith real estate market is not in the best condition with a less than healthy rating of 1.9 out of 10 from Zillow. The current home value is $101,600 which represents a decrease of 2.3 percent; however, home values are expected to increase by 3.4 percent over the next twelve months. Median list prices are currently $134,000 and median closing prices are $120,000. A two bedroom home starts at $15,000 while a large three or four home may sell in excess of $1 million. The 58 homes that are currently in foreclosure is a 23 percent decrease from July 2016 to August 2016 and 43 percent higher than in 2015. Fifty-five percent of residents own their homes, and while 697 homes are for sale, another 81 are available to rent. Zillow’s rent index is $869 per month, a 1 percent decrease from the previous year, and the median rent is $800 per month. A small one bedroom rental starts around $325 and a three or four bedroom apartment or condo rents for over $2000 per month.
Fayetteville is the third largest city with a population of 80,621 people. The median as is 33 years and 42 percent of all homeowners are single. Located in the Ozarks, it is the home of the University of Arkansas. In 2012, it was named number 25 on Forbes Best Places for Business and Careers. Unlike the status of Fort Smith, the Fayetteville AR real estate market has a very healthy rating of 8.1 out of 10. According to Zillow, the current home value is $189,500—11.7 percent higher than the previous twelve months and expected to increase 3.7 percent over the next twelve months. Sixty-four percent of residents own their homes, and only 83 homes are in foreclosure which represents no change from July to August but a 200 percent increase over the preceding year (2015). The median list price is $225,000 and the median closing is $187,000. Approximately 1147 properties are for sale and listings appear on Trulia as low as $70,000 for a one or two bedroom home up to anywhere from $200,000 to $500,000 for a four bedroom home. There are an additional 109 homes for rent. The median rent is $1275 per month; Zillow’s rent index is $1324, 3 percent lower than the same time in 2015. Rental properties start around $500 for a one or two bedroom home and can exceed $3000 for three to five bedroom properties.
Jonesboro’s population of 70,187 makes it the 5th largest city in the state. Home to Arkansas State University, it is also a regional center for manufacturing, agriculture, medicine, education, and trade. Thirty-one percent of residents are single, at a median age of 35 years, and 62 percent of residents own their homes. The current home value on the Jonesboro real estate market of $175,600 is 10 percent higher than the previous year. The median list price is $150,000 and the median closing price is $148,000. At least 963 properties are currently listed for sale on Realtor.com. Two to three bedroom homes sell starting just under $25,000 and go up to $1.3 million for anywhere from four to seven bedroom homes. There are 48 properties in foreclosure—33 percent higher than the previous month (July 2016) and 100 percent higher than the same time the previous year (August 2015). Realtor.com also lists 33 properties available for rent. The median rental price is $1135 per month, and the rent index from Zillow is $1114—8 percent higher than the year before. One to two bedroom homes rent beginning at $450 per month and a four bedroom home rents for more than $2000 per month.
The 4th largest city in Arkansas is Springdale with a population of 69,797. Sixty-seven percent of residents own their homes, 27 percent are single, and the median age is 32 years. Located in the Ozark Mountains, it is one of the most important cities for industry in the region. The top employer is the world headquarters of Tyson Foods with over 4300 employees. Similar to Fayetteville, the Springdale AR real estate market is very healthy with a rating of 8.4 out of 10. The current home value is $143,700, 12.8 percent higher than the year before and expected to continue to increase 4.1 percent over the next year. The median list price is $175,000 and the median closing is $156,000. Actual prices begin just under $60,000 for a two or three bedroom home while a four or five bedroom home can cost as much as $1.5 million. Seventy-one properties were in some stage of foreclosure. While Realtor.com lists 939 homes for sale, another 52 are listed for rent. The rent index is $1175, a 1 percent increase over the preceding year, and the median rent is $1272 per month. One or two bedroom apartments start around $450 and four or five bedroom homes rent for as much as $2000 or $3000 per month.