2023 Year-end Real Estate Report – Hot Springs Village

This report covers the current activities against the same timeframe last year. In this case, December 2022, against December 2023. It also reflects the annual results for 2022, 2021, 2020, and 2019. I also break down sales for single-family properties by county and provide some additional granular data, based on the current month.

Hot Springs Village

Single-family properties closed in December 2023

  • 36 closed in December 2023 – 544 for YTD 2023
  • Available for sale = 81 (As of Jan. 1, 2024)
  • Average selling price – $372,260
  • Median selling price – $309,000
  • Average selling price per square foot – $157.57
  • Average days on market – 33
  • Under Contract – 29
  • Taking Backup Offers – 11

Three (3) of the homes closed in December, 2023 were new builds making the total closed through the MLS for 2023 at 63. The selling price of these homes was $686,600 or $216.71 per square foot.
There are 19 new builds in the current MLS inventory of homes available for sale, representing 23.5% of the current inventory.

On a YTD 2023 basis, 544 single-family homes have closed, compared to 616 closed in 2022. Of the 544, 258 were closed in Saline County at an average selling price of $434,215 or $175.98 psf. 286 have been closed in Garland County at an average selling price of $279,563 or $140.43 PSF.

Single-family properties closed in December 2022

  • 35 closed in December 2022 – 616 for YTD 2022
  • Average selling price – $344,553
  • Median selling price – $301,000
  • Average price per square foot – $152.45
  • Average days on market 12

State of HSV Market

1) On a YTD 2023 basis, we have closed 72 fewer single-family homes and 15 fewer townhomes, which results in total closings being down 87 properties year-over-year, or 13.9%.
2) The current selling price to listing price is 98.2%, further indicating that the escalation in selling prices we experienced are for the time being a thing of the past.
3) Cash transactions represented 48.5% of all transactions for December 2023, which may bode well for those who choose or need to finance.
4) Affordability of housing in HSV continues to be more favorable at $309,000 vs the national median of $408,459.

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 December 2023 at an average selling price of $145,800 or $110.21 PSF. On a YTD basis, 84 townhomes have closed at an average selling price of $169,800 or $122.96. As noted above, year-over-year, townhome sales are down 15 properties.

Lot Sales

In December, 2023, there were 19 lots closed through the MLS. On a YTD basis for 2023 there were 271 lots sold compared to 244 closed in 2022.

The overall inventory of available MLS lots is now 456 (down 22 from last month), where last year at this time it was 603. The good news is that we have closed 27 more lots than were closed in YTD 2022. This does not include the 5,471 lots that are owned by the POA. There is also another 6,098 that are in the Delinquent/Unproductive category, which is down 102 from last month.

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 as their own categories. It is also worthy to note these numbers are provided several days after the month has closed which may result in differences down the road due to data not having been updated timely by the real estate community. This report is effective with data available 9/3/2023.

Arkansas Real Estate Market*

  • According to Redfin, home prices in Arkansas were up 3.9% year-over-year in November. At the same time, the number of homes sold fell by 6.2%, and the number of homes for sale rose by 10.6%.
  • Median sales price in Arkansas is $245,900 compared to HSV’s median of $309,000.
  • 2023 is considered by many to be a balanced year for housing supply and demand. This is ideal for purchasers and rental property investors. We are no longer a “seller’s” market, but more of a balanced market.

National Real Estate Market*

  • Mortgage interest rates fell below 7% in December 2023 to 6.95% from a high of 7.79% earlier in the year. Additionally, the Federal Reserve has indicated the potential of three cuts to the prime rate in 2024.
  • NAR indicates that home prices fell 12.9% in 2023, but predicts they will rise by 15.5% in 2024.
  • Nationwide, 24% of homebuyers searched to move to a different metro area between Oct ’23 – Dec ’23. The top 5 states homebuyers searched to move to were Florida, North Carolina, Tennessee, South Carolina, and Arizona while California, New York, Illinois, Massachusetts, and Washington were the top five states homebuyers searched to move from.
  • Housing affordability is expected to improve in 2024 as mortgage rates fall and more homes go up for sale.
  • National Median Sales Price – $408,459 in November of 2023 vs current HSV of $301,000.

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

Feel free to reach out to me at lloydhsv@gmail.com 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

Click here to read Lloyd’s real estate report from November.

Click here to visit the Hot Springs Village POA Facebook page.