Tag: northwest-arkansas

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Interest Rates Dropped: Here’s What That Mean for Northwest Arkansas Real Estate

The Fed just announced a rate cut, and suddenly, the housing market chatter is louder than Razorback fans after Sam Pittman’s unceremonious canning. Buyers are asking if now’s the time to pounce, recent homeowners are calling about refinancing, and everyone wants to know if another cut is on the way. Let’s break it down in plain English—without the economic jargon or the need for a finance degree.

What the Interest Rate Drop Means for Buyers in Northwest Arkansas

Lower Rates = More Buying Power

When interest rates dip, your monthly payment shrinks. That house in Bentonville or Rogers that felt like a financial stretch last month? Now it might actually fit your budget without causing heart palpitations. Lower rates don’t mean homes are on sale, but they do mean you can get more house for the same payment.

Translation: if you were on the fence, this rate cut is like a polite nudge from the housing gods saying, “Hey, maybe get off Zillow at midnight and actually go look at a house.”

How Much More Home Can You Afford in 2025?

A small percentage drop in rates can mean tens of thousands more in buying power. For example, a $300,000 home at last year’s rate might cost you the same each month as a $325,000 home today. That bump could mean the difference between a standard kitchen and the one with the quartz countertops you’ve been drooling over.

Why It’s Still Smart to Focus on Your Budget (Not Just Rates)

That said, don’t let “lower rates” convince you to throw your budget out the window. The right home is about fit, not just what the bank says you can technically afford. Rates help, but a house still needs to fit your lifestyle (and your grocery bill).

Should Recent Homebuyers in NWA Refinance After the Rate Cut?

Why Lenders Already Anticipated the Cut

The second the Fed sneezes, lenders have already stocked up on tissues. In other words, they usually see rate cuts coming and price them into the mortgages you locked in. That means most people who closed recently already got the benefit baked in.

When Refinancing Actually Makes Sense

Refinancing can be smart if rates drop significantly from where you locked, or if you’re planning to stay in your home long enough to recoup the closing costs. But if your rate is already competitive, chasing a tiny drop won’t save enough to justify the hassle.

The Cost of Refinancing vs. the Potential Savings

Think of refinancing like switching cell phone plans. Sure, you might save $10 a month, but if it costs $3,000 in fees and paperwork to get there, is it really worth it? Unless you see a major rate shift, the answer is probably no.

Is Another Interest Rate Cut Coming in 2025?

What Economists Are Predicting

Some experts believe another cut is possible later this year if the economy cooperates. But just like trying to predict Arkansas weather—sunny morning, tornado afternoon, snow by dinner—it’s not an exact science.

Why Timing the Market Rarely Works

Waiting for the “perfect” rate is like waiting for the perfect time to have kids, start a business, or clean out the garage. It never really arrives. If buying now makes sense for your budget and your life, don’t stall just because you’re hoping for another quarter-point drop.

The Best Approach for Buyers and Homeowners in Northwest Arkansas

The real key is flexibility. The Fed could cut again if the economy plays nice, but for now, don’t plan your whole financial future around it. If you’re ready to buy, the best time is when it makes sense for your budget, not when you’ve memorized Jerome Powell’s facial expressions on CNBC.

Bottom Line for the NWA Housing Market

What Buyers Should Do Now

If you’ve been house-hunting in Fayetteville, Bentonville, or Bella Vista, this is a great window to make your move. You’ll get more bang for your buck thanks to lower rates, but don’t let excitement push you past your comfort zone.

Why Homeowners Can Relax (For Now)

If you bought recently, congratulations, awesome! You likely already have a solid rate. Unless we see another big drop, refinancing probably isn’t worth the time, cost, and paperwork. Translation: Enjoy your new home without refinancing FOMO.

Stay Flexible, Stay Informed, and Stay Local

Could rates drop again in 2025? Sure. But don’t build your whole housing strategy on a “maybe.” The smarter move is to focus on what works for your family and your budget now. The market will do what the market does. Your job is to make sure your real estate decisions fit your life here in Northwest Arkansas.

Ready to talk through your options? Whether you’re buying your first home, upgrading, or just curious about refinancing, I’ll help you translate “Fed speak” into real-world advice (with fewer acronyms and more coffee).

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“Home Sweet Affordable Home”: Tackling the Housing Challenge in Northwest Arkansas

Affordable housing is the cry of just about any major metropolis or fast-growing area in the United States. We left Austin almost two years ago, largely because the cost of real estate, remodeling, and building had become unsustainable, at least for us.  Affordable housing was simply a buzzword that the city liked to throw around council meetings to make themselves feel good while continuing their high regulations process, which caused the price of real estate to continue to rise. Oh, the irony.

Speaking of irony, after leaving Austin, we ended up in the most expensive area of Arkansas…NWA. 

While we love it here, we realized Bentonville and the surrounding areas have their own housing issues. Affordable housing and the ability, as a builder, to offer it is a huge issue. Because I’m up to my eyeballs in construction and maybe because I’ve had four cups of coffee this morning, I’ve got many ideas, but for the sake of time, let’s start with three. 

First, addressing the affordable housing shortage in Bentonville and the surrounding area isn’t a simple, one-and-done solution. It will require a multifaceted approach involving policy reforms, public-private partnerships, and community engagement. 

Buckle up, city folks because the first thing that needs to happen is: 

1. Implementing Policy and Zoning Reforms

Expedited Approval Processes. Ya’ll are killing us with your ever-evolving approval and permitting processes (I’m looking at you, Bella Vista). By streamlining the development approval process you can help us builders reduce construction timelines and costs, which can then be passed on to the public.

I’m not the only one saying this. In November of 2021, the city of Bentonville created a Housing Affordability Workgroup specifically to review housing needs, availability, and affordability in Bentonville. While city review groups normally give me a tic under my left eye, this one has some good ideas, specifically by recommending creating expedited processes for small-scale developments and affordable housing projects that meet specific criteria. 

Like I said, settle down wielding your permitting power, city people. 

2. Fostering Public-Private Partnerships

Collaborative Developments: An affordable housing community was created in collaboration with Excellerate Housing, Bentonville Schools, Benton County, Mercy, Walton Family Foundation, and Arvest Bank. McAuley Place exemplifies successful collaborations aimed at increasing affordable housing. This 160-unit development, located near the Bentonville Community Center, includes single-family cottages and multifamily units designated for local educators and staff. 

We need more of these.

Financial Incentives: Offering tax incentives, grants, or subsidies to developers who include affordable units in their projects can stimulate the construction of such housing. The federal Low-Income Housing Tax Credit (LIHTC) program, utilized in developments like McAuley Place, is a model for leveraging financial tools to support affordable housing. 

And finally, for today, 

3. Engaging the Community and Stakeholders

Housing Affordability Workgroup: Established by the Bentonville City Council, this group conducts reviews of housing needs, availability, and affordability and provides recommendations to the city. Their efforts have led to the development of Project ARROW, a targeted approach to increasing affordable housing supply through education and collaboration.

Educational Campaigns: Raising awareness about the benefits of affordable housing and involving residents in planning processes can build community support and reduce opposition to new developments.

By furthering the above ideas, we can improve the affordable housing situation in NWA or at least begin to move it forward. 

While I don’t have a crystal ball, all signs point to the fact that interest rates will drop sometime this year, and the housing market will heat up. 

Let’s prepare and be ready.

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“Coffee, Whiskey, and the Truth About Real Estate: Why NWA’s Market Is Heating Up in 2025”

I need another cup of coffee before I dive into this.

 Or a glass of whiskey. 

I see posts like this all the time. While they’re most likely meant to grab reactions, they’re a demonstration of ignorance at best. 

I know every real estate market is different. I’ve got my finger on the pulse of both the Austin market and here in Northwest Arkansas. I get it. However, the fact of the matter is that a president, whether Democrat or Republican, will not be able to come in and single-handedly “crash” the real estate market. Wherever you’re at.

Since NWA is my home, I’m going to give you four solid reasons I believe we will see housing prices continue to rise here and why this spring will indeed be a hot market. No matter who you voted for.

But first, let’s talk about how stuff works. 

Yes, I know that a political administration’s policies will affect the market. But I also know how our economy works, as well as the Federal Reserve and their decision on what to do with interest rates, which is what really dictates what happens in all things real estate. 

A quick lesson in how the Fed determines what to do with the interest rate. 

The Federal Reserve does not make arbitrary decisions based on the last election cycle. Decisions regarding whether to lower the interest rate are based on multiple fronts.

  • Inflation: Target inflation rate is 2%. If inflation remains below this rate, this is an indicator rates could drop. Today’s current rate is 2.7%, which is a huge improvement from June of 2022 where it was as high as 9.1%.
  • Employment and labor markets: Higher unemployment rates, slow job creation, and stagnant wages could trigger a rate cut.
  • Economic growth: Slower GDP growth and a drop in consumer spending could signal a cut.
  • Stock market trends: Sharp declines can influence the Fed’s decisions on rate cuts.
  • Global market trends: Global slowdowns can also predict what direction the Feds could take in regard to rate cuts.

…just to name a few. Even natural disasters can affect the decision to raise or lower the interest rates. 

And yes, I know certain policies will affect the market. But please. Stop the fatalism. The sky is not falling, no matter who the president is. 

Now, grab yourself a hot cup of coffee, and let’s go to my four reasons why I believe we’ll see a boon in the NWA market. 

  1. Continued Economic Expansion. Everyone knows Bentonville is the home of Walmart. But did you know J.B. Hunt, Tyson Foods, and Simmons Food all call this area home and continue to attract a skilled workforce? Additionally,  Walmart’s new  1 billion dollar “Home Office” campus, set to open in 2025, is expected to continue to boost local employment and housing demand.
  2. Population Growth: Let’s talk people. Bentonville’s population rose by 2.7% in 2023, and it’s not slowing down. This indicates a sustained demand for housing.
  3.  Limited Housing Inventory: While there’s lots of new construction happening here, housing inventory is still low. This means increased competition for buyers and higher prices. According to the Skyline Report, in the first half of 2024, 4,799 homes were sold in Benton County and nearby areas, marking an 8.5% increase from the previous year, with 39.5% being new constructions.
  4. Stable Mortgage Rates: Finally, future projections indicate that mortgage rates may decline slightly this year, encouraging even more buyers to enter the market and increase housing demand.

Do I have a crystal ball? No. Sure wish I did sometimes, but I don’t need one to determine whether or not the market is going to crash this year. All facts point to a growing real estate economy in 2025.

Similar to my waistline from the holidays. But I digress.

So, to my real estate colleagues, stop worrying, get out there, and sell some houses.

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The #1 Secret Your Real Estate Agent Wants You to Know

Have you ever bought or sold real estate? If you have, you know what it’s like to sweat through the offer, inspection, appraisal, and negotiation process. You either made it through to the end with success or a whiskey caffeine addiction and a twitch under your left eye. Or all of that.

Maybe it was easy-peasy thanks to a fabulous agent who made it look like a walk in the park, and you know nothing about said agent’s new nicotine addiction. 

But here’s the deal. Even if you had an award-winning, go-getting, nerves-of-steel-even-after-6-cups-of-coffee agent who makes it all look like sunshine….it’s not. Real estate, albeit enjoyable, is challenging. You’re dealing with human beings and their emotions centering around the most significant purchase they will ever make, dealing with some of the most important decisions they will ever make. Throw in any number of other extenuating circumstances, like:

  • Foreclosure
  • Divorce
  • Death

Just to name a few…..

And you have a recipe for a high-pressure, trauma-inducing, therapy-necessitating event. 

Having just anybody represent you is not a great plan. But even if you have the best possible agent beside you, you need to know something. It’s actually the number one secret that every agent wants you to know.

Ready?

Real estate agents do not own a crystal ball. 

Shocking, I know, but the fact remains that we can give you the very best updated market statistics. A detailed comparative market analysis, including showing you the average days on the market for properties in your area. We can send you spreadsheets, videos, and data with exhaustive information regarding interest rates, potential buyers, and marketing scenarios, but at the end of the day….

We’re just really educated guessers. The most experienced agent can give you all the information, list, and market your home perfectly, and it might not sell right away. Although real estate is all about numbers, list price, days on the market, interest rates, and potential buyers through the door, ultimately, it’s also about people. People who have emotions, life changes, and changing desires. 

As an agent, anxious sellers often ask me how long I think it will take for their house to sell. And with all the confidence of a 4-year-old in a Batman shirt, I cite the current market statistics and pray for the best. 

And I consider myself a good agent. 

So I guess what I’m trying to say is be realistic and don’t assume your agent has psychic skills, a crystal ball, or practices witchcraft. 

However, there are ways you can help mitigate some of the unknown. First, listen to your agent. Even without black magic, a good agent (like me!) can guide you through the process.

Remember, homes require three things to successfully sell. Price, marketing, and condition are the most important criteria. Listen to your agent’s advice about these three points. If you do, I can almost guarantee your house will be sold, and you’ll be on your way to new pastures. 

Second, give yourself and your agent grace. Selling (or buying) is a process, often with factors out of your control as well as your agents’. 

And finally, practice patience! We know that you want and need your property sold. No one wants it to happen for you more than your agent. It can be a difficult and emotional journey, but patience is the best trait to bring with you for the trip. 

As a final aside, going through a challenge with someone can often bring you closer. Facing obstacles together allows individuals to rely on one another, offer support, and work towards a common goal. In the process, connections can grow stronger, and what once started as a challenging situation can lead to developing a meaningful friendship. So, embrace challenges with an open mind, as they may bring you the gift of a good friend as well as a fabulous agent. 

Now I’m off to eBay to see if they have crystal balls for sale.