T
he Arkansas real estate market is experiencing a period of calm, with agents describing it as neither a buyer's nor seller's market. Home prices are still appreciating in value, but interest rates between 6 and 7 percent for 30-year-fixed rate mortgages have slowed the market. This has made buyers more diligent in their research and less likely to rush into purchases.

    "We're not in the frenzy we were in in 2021 and 2022 during COVID," said Beau Durbin, co-owner of ESQ Realty Group in Hot Springs. "But we certainly have a healthy real estate market in Hot Springs particularly." Durbin noted that many buyers in Hot Springs pay cash, making them less affected by high interest rates.

    Bob Bushmiaer, executive broker at The Janet Jones Co. in Little Rock, said the market is leaning towards a buyer's market but experts are "on the fence" about it due to home price appreciation. He advised sellers to be patient and price their homes correctly, as the days of getting multiple offers or prices above asking are gone.

    Suzett Sparks, managing broker at Lindsey & Associates in Rogers, said even with high interest rates, Arkansas Realtors are staying busy. She noted that renting is also expensive, making real estate a more attractive option for long-term investment. Concerns about housing inventory have subsided as interest rates leveled, and the state still has a housing crisis.

    A recently passed bill broadening the ability to build auxiliary dwelling units on properties aims to address this issue. The National Association of Realtors is also requiring written buyer agreements before showing properties, aiming for transparency and a relationship with buyers.

    Realtors are warning clients about scams that can occur during real estate transactions, particularly in northwest Arkansas. They advise using best practices such as video conferencing or meeting in person to verify identities and double-check wiring instructions.

    Buyers now want homes with open concepts, big garages, outdoor living spaces, and newer construction instead of fixer-uppers. Many newcomers to Arkansas are looking for green space, a yard, and a slower pace of life. Realtors say the state's affordability and attractions drive people from other states to buy homes in Arkansas, making it an upward trend for sure.