The Smart Money's on Little Rock Real Estate

Author:	Alan Sarfati
Source:	Homes Discovered
Date:	July 1, 2006

What metropolitan area was ranked 10th by Forbes in terms of income growth and 22nd of 200 best places in America for business and careers and has a housing market that is up to 17% under market value?  Surprise!  It's Little Rock!   Never previously considered a real estate hot spot, Little Rock is emerging today as a solid, steady market winner.  Moody's Investment Services named Little Rock as having the second most diverse economy in America, which translates into stable local growth and a resiliency to the dip in the housing market seen most everywhere else in the country.   For both the past two years Little Rock's housing market has appreciated over 7.5%, a trend Fortune Magazine expects will continue for at least another two years.  Local Market Monitor, a real estate analysis firm, determined Little Rock to be one of the most undervalued markets in the country, by as much as 17% in some neighborhoods.  The National Association of Realtors (NAR) recently estimated the median price of a single-family house at $124,000, which is $100,000 less than the national median.  This, coupled with the fact that it takes less than 13% of the average person's income to buy a typical house in Little Rock (compared with 52% in San Francisco), makes Little Rock a very affordable housing investment.  The Arkansas Realtors Association can boast of overall increasing home sales for the past 15 years.  Job growth, the variable most heavily figured in the moderately priced housing market, remains steady and sales of Little Rock homes under $250,000 are still up.  Little Rock offers a thriving River Market District, historic treasures, and great outdoor activities.  With interest rates still relatively low, it is no wonder home buyers are relocating to Little Rock.  Little Rock real estate is an attractive and affordable alternative for families, singles, and retirees alike.

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