Arkansas Real Estate Market

Statewide Market Overview

The Arkansas housing market is showing steady growth. The average home value is approximately $217,900, with a modest year-over-year increase of around 2.2%. The median sale price is about $227,600, while the median list price is around $271,600. Homes typically go under contract in about 38 days, suggesting a market that is active but not overheated. There are roughly 13,600 homes for sale across the state, including over 3,500 new listings.

Market Dynamics

Inventory remains relatively limited, which continues to drive competition and support gradual price increases. Mortgage rates are hovering near 6.9%, which affects affordability and buyer behavior. Arkansas maintains a favorable affordability ratio—about 4.5 times the median household income is needed to purchase a median-priced home—making it one of the more affordable housing markets in the country.

Regional Highlights

In Northwest Arkansas, including cities like Bentonville and Fayetteville, the market is particularly strong. Home values in Bentonville have risen sharply, with average prices reaching close to $450,000, representing a 7% increase year-over-year. This area continues to attract new residents due to economic expansion, especially from companies like Walmart headquartered there.

Little Rock also shows positive momentum, with the median home sale price climbing to around $261,300, marking a month-over-month increase of nearly 6%.

In contrast, Pine Bluff is experiencing a housing downturn, characterized by economic decline and population loss. Homes are selling at extremely low prices, and the area faces challenges with a surplus of abandoned properties.

Rental Market

Rental prices are gradually increasing in line with population growth and development. The median rent in Arkansas is about $1,375, maintaining affordability compared to national averages.

Market Outlook

Looking ahead to the second half of 2025, the Arkansas housing market is expected to continue stabilizing. Home prices may rise moderately, but an increasing supply of homes could create a more balanced environment. This may ease competition among buyers while still offering favorable conditions for sellers.