Real Estate Market in Transition

We are seeing sharp contrasts in the 2025 housing market. Home sales are slowing down, and inventory is rising. We are seeing some price reductions, but mortgage rates remain high. Of course, that’s relative. If you lived through the real estate market in the 70s and 80s, you know what high mortgage rates really are. They were between 16% to almost 19% back then! More recently, we remember those wonderful 2.65% rates just a few years ago.

Whether you’re thinking about buying, selling, or simply waiting it out, one thing is obvious: the real estate landscape is shifting. Here's what you need to know to make a smart move in today’s climate.

What’s Really Happening in the Market?

According to the U.S. Census Bureau’s latest data, new home sales dropped 6.6% year-over-year, and the months’ supply has climbed to 9.8. What does that mean? Basically, we are heading into a buyer’s market. But that doesn’t mean you will find bargains on every block. Many sellers have drawn a line in the sand, and prefer to take their home off the market rather than negotiate lower prices.

Key Stats:

• Median new home price in Arkansas (June 2025): $251,900 (up slightly from May)

• New homes for sale: 16,358 (up 11.9% year over year)

• Median homeownership cost: $1,297/month

Sellers Are Standing Still—but Buyers Are Getting Smarter

More than ever, sellers are playing a waiting game. Delistings are up 47% nationally., Why? Homeowners with strong equity are choosing to taken their homes off the market rather than sell for those peak prices seen recently. At the same time, buyers are becoming more selective. An increase in inventory gives them more options and more negotiating power.

What We Can Learn From Investors

While home buyers may hesitate, investors see opportunity, and are taking advantage of the current market. They are looking at long-term cash flow, and buying in undervalued markets.

What can everyday buyers and sellers learn from this?

• Focus on value over hype

• Use technology to your advantage (e.g., online market tools, virtual tours, and automated alerts)

• Be flexible—your willingness to negotiate or consider nontraditional strategies could pay off

What It Means for You—Whether You’re Buying or Selling

If you’re buying:

• Take advantage of rising inventory across many parts of the state—including Central Arkansas, the River Valley, and Northwest Arkansas. With more homes on the market, you’ve got a better chance of finding the right fit at the right price.

• Watch for builder incentives like rate buydowns or help with closing costs, especially in new developments near growing towns like Bentonville, Conway, or Cabot.

• Explore areas seeing more listings—places that may have been too competitive a year ago could now offer negotiating room.

If you’re selling:

• Price your home realistically. Homes that are priced in line with current market conditions are still getting strong interest and offers.

• Expect a longer selling timeline. Homes are now staying on the market for an average of 50+ days, so patience is key.

• Don’t panic if your home doesn’t sell right away. Withdrawing your listing and waiting for the right moment can be a smart strategy.

Final Thoughts: Navigating the New Normal

The 2025 real estate market isn’t crashing—but it is correcting. That means buyers have more room to negotiate, sellers need to price their homes in line with current conditions, and both parties need to stay informed and flexible.

Whether you're thinking of jumping in or just testing the waters, now more than ever, the key to success is understanding your local market, timing your move wisely, and working with a professional who knows how to navigate uncertainty.

Curious how these trends are playing out in your neighborhood?

Contact Live Love Arkansas for a free market analysis . Let’s make a smart move—together. You can contact our team today at (479) 747-2466 for a no-pressure consultation where we'll create your personalized path to your real estate goals—including programs and strategies most buyers never hear about.