HSV Real Estate Update for Period Ending 3-31-2024

This report covers the current activities against the same timeframe last year. In this case, March of 2023 against March of 2024. It also reflects the annual results for 2023, 2022, 2021, & 2020. I also break down sales for single-family properties by county and provide some additional granular data, based on the current month. This month’s report has been expanded to cover information regarding wire transfer fraud and the NAR lawsuit settlement.

Hot Springs Village

Single Family properties closed in March 2024

• 41 closed in Mar. 2024 – 119 for YTD 2024
• Available for sale = 86 (As of Apr. 1, 2024)
• Average selling price – $336,635
• Median selling price – $315,000
• Average selling price per square foot – $152.75
• Average days on market – 35
• Under Contract – 38
• Taking Backup Offers – 24

Seven (7) of the homes closed in March 2024 were new builds. The selling price of these new home sales was $468,342 or $198.80 per square foot.

There are 15 new builds in the current MLS inventory of homes available for sale.

For the month of March, 41 single-family homes were closed. Of the 41, 19 were closed in Saline County at an average selling price of $423,392 or $178.20 psf. 22 were closed in Garland County at an average selling price of $261,709 or $130.77 psf. Keep in mind that most new builds are closed in Saline County, which is the major contributor to the selling price and per square foot (psf).

Single Family properties closed in March 2023

• 57 closed in Mar. 2023 – 124 for YTD 2023
• Average selling price – $354,987
• Median selling price – $345,000
• Average price per square foot – $156.79
• Average days on market 36

State of HSV Market

1) HSV continues to be balanced and holding steady. A balanced market has decent inventory and a healthy number of buyers. However, sales can remain impacted by higher interest rates, and currently, it is taking longer for a sale to close.

2) The current selling price to the listing price is 98.2%. This would continue to enforce the concept that most houses are being listed at a price the market is accepting.

3) 53.7% of the transactions closed in March 2024 were cash transactions.

4) Affordability of housing in HSV continues to be more favorable at a median of $315,000 vs the national median of $412,095.

5) PLEASE refer to further information provided under the heading National Real Estate Market to learn more about the proposed settlement of the NAR settlement regarding compensation paid to buyer and seller agents.

6) It has been reported that home buyers and sellers say they are not getting enough information or warnings regarding the risks of wire fraud and other scams targeting real estate transactions, and they want agents to educate them more about protection, according to CertifID’s newly released study. Make sure your agent is providing you this information whether you are buying or selling.

7) In 2023, there were 545 single-family home sales. The length of time (DOM-Days on Market) can be associated with the listing price vs the selling price. For instance, in 2023, 52 homes were essentially sold before they were officially listed, and those homes sold for 99.08% of the listing price; 328 sold in 1-30 days at 98.95% of the listing price; 105 sold in the 31–90-day range at 96.81% of the listing price; and the remaining 60 sold in the over 90 category were sold at 94.88% of the listing price.

NOTE: Keep in mind that these numbers only include transactions that have gone through the MLS and, as such, will not include those where lot owners have contracted directly with a builder or someone has sold FSBO.

Condos/Townhome Sales

Six (6) townhomes were closed in March 2024 at an average selling price of $203.666 or $133.12 psf.

Lot Sales

In March 2024, there were 13 lots closed through the MLS. The overall inventory of available MLS lots is now 524, whereas last year, at this time, it was 600.

Information provided comes directly from the MLS (Cooperative Arkansas Realtors MLS – CARMLS) and contains only information from within the Village boundaries. Other sources may be providing their statistics based on zip code, and most of them also contain lot and townhome information, which this report breaks out into their own categories. It is also worth noting that these numbers are provided several days after the month has closed, which may result in differences down the road due to data not being updated in a timely manner by the real estate community. This report is effective with data available 4/3/2024.

Arkansas Real Estate Market*

1. Home prices in Arkansas were up 1.7% year-over-year in February. At the same time, the number of homes sold rose 1.4%, and the number of homes for sale rose 10.6%.
2. The median selling price for Arkansas was $240,700 compared to $315,000 in Hot Springs Village.
3. The average months of supply is four months, up 0 year over year. This compares to HSV, where inventory is currently only two months.

National Real Estate Market*

1. Home prices nationwide were up 6.4% year-over-year. At the same time, the number of homes sold rose 2.6%, and the number of homes for sale rose 4.6%.
2. U.S. home prices were up 6.4% compared to last year, selling for a median price of $412,095.
3. By now, many have most likely heard about the NAR (National Association of Realtors) lawsuit regarding commissions paid by Sellers on behalf of buyers. A settlement has been proposed, and unless something changes, the settlement will become effective in mid-July 2024. What does that mean to buyers and sellers in Hot Springs Village?:

a. In Arkansas and specifically in HSV, the impact is basically insignificant. Brokerages, for the most part in Arkansas have been operating with these settlement points for quite some time.

b. However, one of the changes that will take effect in July, 2024 is that offers of compensation will not be allowed for inclusion in the MLS (multiple listing services).

c. All buyer agency agreements will need to be in writing (already required/encouraged by AREC 10 (a) & (b). What this means to
buyers is that an agent cannot legally show a house without first obtaining a buyer agency agreement. Just means more
paperwork.

d. Offers of compensation from selling brokers to prospecting selling brokers will need to be communicated much as they were prior to origination of MLS.

e. Seller concessions to buyers may continue to be made in the MLS other than cooperative sharing of seller side fees.

4. What d & e are getting at is that sellers should never have been led to believe that they were responsible for selling the buyer side compensation/concessions and that it has always been an option and has never been a set number and could have been negotiated. Now what sellers have needed to understand are the implications of not paying buyer side compensation/concessions, which agents should have been explaining to them in Arkansas all along.
5. Direct Quote From ARA (Arkansas Realtors Association – “The option for sellers to cooperate on buyer broker compensation is extremely important to homebuyers, especially for first-time buyers who have been challenged by higher mortgage rates, inflation and rising home prices – additional out-of-pocket cost could push them beyond their budgets or out of the market altogether.”

*Data on an Arkansas and National basis tend to lag by one month, whereas data regarding HSV is available through the end of the current month.

This NAR Settle Proposal may be as clear as mud to some, so feel free to reach out to me at lloydhsv@gmail.com or 501-204-2770 if I can answer any questions for you. For disclosure purposes, I am a Realtor® and the numbers reported here come directly from the MLS.

By Lloyd Sherman, Associate Broker, Trademark HSV Real Estate

Lloyd Sherman

Author & Real Estate Agent
Email: lloydhsv@gmail.com