Housing Inventory’s Up, Prices Are Too—So What Kind of Market Is This in Northwest and North Central Arkansas?

Markets are ever-changing, and the same can be said about the real estate market!

It’s more important than ever to understand what those changes mean and how they can work in your favor.

Coldwell Banker Harris McHaney & Faucette is here to help you understand real estate terms so you can navigate the market with ease!

What’s the Difference Between a Buyer’s Market and a Seller’s Market?

Before you understand what kind of market it is, you need to understand market conditions.

The key measurement is the Absorption Rate. It’s also known as months of inventory or months of supply.

This number tells us how long it would take to sell all the current homes on the market if no new listings were added.

Here’s how it works:

• 5-6 months of inventory: a balanced market
• Less than 5 months: a seller’s market (higher demand, lower supply)
• More than 6 months: a buyer’s market (higher supply, lower demand)

Currently, Northwest Arkansas has about six months of inventory, indicating a shift towards a buyer’s market.

Breaking Down the Data:

Now that you understand how realtors determine whether it’s a buyer’s or seller’s market, here’s a quick look at how our local market has evolved over the last five years, using data from ArkansasONE MLS*.

Anything above 6 indicates a buyer’s market, with seller’s market for anything below!

As you can see, inventory has grown, but so has home value. That’s good news for both buyers and sellers.

Buying Homes in Northwest Arkansas

If you paused your home search over the last year due to tight inventory or bidding wars, now is a smart time to jump back in.

Here are just a few reasons:

• More Options: Inventory is up, so you have more homes to choose from
• Less Competition: Fewer multiple-offer situations and more room to negotiate.
• Better fit: Much more likely to find a home that fits your needs and wants perfectly.

Selling Homes in Northwest Arkansas

While we’ve entered a buyer’s market, that doesn’t mean homes aren’t still selling.

Here’s what to keep in mind:

• Northwest Arkansas is growing: With that growth comes new opportunities daily.
• Homes are still selling: Because buyers are so common, homes still find buyers.
• Prices remain strong: Even though the market shifted, average sale prices have continued to rise. A great sign for sellers.

A Unique Opportunity for Real Estate in Northwest Arkansas

The current market offers a great window of opportunity for both buyers and sellers.

Buyers have more flexibility and negotiating power, while sellers continue to benefit from a strong market supported by steady population growth and rising property values.

Buying or Selling Homes in Northwest Arkansas

Work with a local expert who understands the numbers and how to use them to your advantage! Connect with an agent at Coldwell Banker Harris McHaney & Faucette today!

* Source: Data pulled on June 11, 2025 from Arkansas ONE MLS stats, ADOM vs List Price Median for residential sales customized by months of inventory and sales price average for specific date ranges noted above.