Bentonville is a small city renowned for big things. Known for being the corporate home of Walmart, the world-renowned retailer, and home to the Crystal Bridge Museum of American Art, one of America's best museums, Bentonville is undoubtedly one of Arkansas' most popular cities. Nowadays, Bentonville is growing into one of the top mountain biking destinations in the country. The Slaughter Pen Mountain Bike Park is taking the world by storm with its soft and challenging trails for both experienced and beginner riders.
On the other hand, many tourists view the city of Bentonville AR as an adorable small quaint town where there are tons of things to do. Exploring Walmart’s history, visiting the Crystal Bridge Museum, or riding one of the bike trails are just some of the attractions that welcome you to Bentonville. The square is the heart of Bentonville, and it is one of the most vibrant places you can find in the state. Here you can enjoy live performing musicians, free parking, and plenty of local restaurants, small businesses, and coffee shops populating the area.
With such a heartwarming community and family-friendly environment, it is easy to see why many people find Bentonville to be one of the best places to live in Arkansas. With the prosperous economy in the area, residents enjoy a safe environment with plenty of educational and job opportunities, which further boosts the city's population number. All these factors indicate a thriving real estate market, perfect for investment opportunities.
What are the real estate market trends for 2021, and what can we expect in the upcoming years? Let’s find out!
Northwest Arkansas had a strong year in 2019 as far as the housing market goes. With more than 10,000 home sales in Benton and Washington counties, the area has a head start in the new decade. Real estate agents in Bentonville AR, and the two-county area managed to close about 10,627 home transactions.
By comparing data, we can see an increase of about 6.3% from 9,992 home sales in 2018. However, historical data from back in 2016 show us that the year-over-year gains were positive each year, and the sharpest increase in home sales happened in 2019. The combined price of single-family homes sold in the two-county area reached an all-time high of $2.64 billion. Compared to 2018, the total value has increased by 12.3%, and for the first time in 2017, prices managed to break the $2 billion mark in the area.
Benton County’s home sales topped the $1 billion mark in 2019 for the fifth consecutive year. By the end of 2019, the sales volume reached $1.75 billion, an increase of about 16% compared to 2018. The number of units sold was close to 6,900 with an 8.8% increase, and the average selling price was around $255,000.
By narrowing down our research to Bentonville, Arkansas, we can see that at the end of 2019, the median home value in the area was close to $255,000. With the development of the area and the increased population, the housing demand continued to grow, making it a seller’s market. Bentonville’s competitive real estate market managed to draw a lot of attention, and many investors rushed to the area to benefit from the continuous growth of the market.
According to Zillow, by the end of 2020, the home value reached a staggering $280,000. The year-over-year increase in home value is 11%, and the trends indicate a positive growth further down the line. The price per square foot in Bentonville was roughly around $140 by the end of 2019. At the end of 2020, it passed the $180 mark.
There are 16,900 homes and apartments in Bentonville AR, and the selling price for 44% of listings is between $124,000 and 248,000. Furthermore, 21% of houses for sale are listed at a price between $248,000 and $372,000, and only 12% are priced between $372,000 and $496,000.
Currently, 6.4% of homes are vacant, 46% are tenant-occupied households, and 53% are owner-occupied. The types of homes featured on Bentonville’s housing market are predominantly single-family homes, with about 66% of the total amount. After single-family homes, 18% of the housing options are apartment complexes, and townhomes, along with small apartment buildings, are roughly the same number at around 7%.
The great news about Bentonville’s housing market has to do with the fact that more than 50% of the homes are less than 20 years old as they were built after 2000. Housing options with 3-bedrooms are the most common types of homes, and they constitute about 40% of the total amount. Two and four-bedroom home options are roughly around the same number, both constituting 20% of the total among homes in Bentonville AR.
In the area, real estate agents admit that Bentonville AR is in the midst of the largest seller’s market they’ve seen in the past 33 years. If back in 2018 there were about a total amount of 507 listings, today you can only find about 120 listings available. However, the area is developing rapidly, and much of the new home construction is happening outside of Bentonville in the surrounding area and in Centerton.
The question still remains, is it a good time to buy homes in Bentonville? Is it profitable to invest in the area? Are we looking at a promising future for the real estate market of Northwest Arkansas? The forecast shows that Bentonville city is not very good for short-term investments, but if you are looking for homes for sale with good flipping profits, there are quite a few investment opportunities available in the area.
Long-term investments are your best bet in Bentonville since the home value has been increasing year-over-year for the past decade. According to Zillow, the prices are expected to grow by at least 7% by the end of 2021. The city of Bentonville provides a quaint and peaceful living environment with great schools and family-friendly amenities. That will attract more families in the area, and they might become the potential homebuyers of tomorrow.
Not to mention that Bentonville is increasing in popularity thanks to its incredible cultural attractions and history that caters towards tourists. Investing in rental properties can be quite a profitable niche in 2021 as more tourists rush to visit the area and explore the hidden gems of Northwest Arkansas.
From a humble farming community, the town of Bentonville has grown to be the home of the largest retailer in the world. Aside from that, the city is known for its great communities, family-friendly environment, and cultural attractions that make it one of Arkansas’s most desirable places. In Bentonville, you can find the perfect balance between life, work, and play, and there are plenty of opportunities for all of these aspects.
With that being said, a desirable place is also a place with a promising housing market. With the real estate market trend of Bentonville AR in 2021, you are looking at some of the most profitable investment opportunities. If you enjoy our content, make sure to share it with your friend and family on all your social media platforms.