I largely agree with Ray, but the number of people moving to NW Arkansas is no longer a net gain of 1000 per month, according to the last economic report by Kathy Deck at the U of A Center for Business and Economic Research. It's down significantly.

What that means is that there are lots and lots of homes on the market right now and the absorption rate has slowed. Sales in Fayetteville are down significantly compared to last year, but prices have been holding somewhat steady. As buyers realize that this IS a great time to purchase a home (lots to choose from and still low interest rates) I predict that they may get off the fence and actually buy.

A lot of buyers have hesitated, waiting for the "bottom" of the market. The problem with this scenario is that when we realize that the bottom has occurred, it will already be past and prices will be back on the way up again.

I have noted increased activity in recent months (could be seasonal), but nothing like previous years. The big decrease in prices in Fayetteville occurred in the 4th quarter of 2006 (14%) after the peak in about October of 2006, but since then prices have more or less remained steady. However, as Ray indicated, buyers are getting more included in those prices such as closing cost help, down payment assistance, and more amenities from new-construction builders, etc. Prices may drop some more before the bottom is hit.

I notice that your "photo" indicates that you are in Lafayette rather than Fayetteville. If you are in another part of the country, then consult a local realtor for price trends in your area.

Since the 1950's our nations real estate market has had 4-5 years ups and 4-5 year downs, to answer your question, we are now stable and in the next 12-18 months we will reach our peek again in 2009. There are some areas however that are on the extremes, some cities in Florida are down as much as 60% from late '04 and 2005.

I'm assuming you are looking in Fayetteville?
I would say that Fayetteville has several pricing anomalies. While you can get a steel in west Bentonville, prices in Fayetteville have remained fairly constant. The average price is 186,000. That is pretty good. The secret is that buyers are getting more out of the deal. Many buyers are asking for their closing cost to be partially or completely paid for. Some are asking for a fence, or to take the fridge. Where 3 & 4 years ago, we would have advised to offer MORE than what the property is listed for so that you can win the home!
There is still a lot of supply available out there, but there are still alot of people moving into the area every month. "They say" there is a net gain of about 1000 people! The builders cut back new housing starts by 36%. At that rate, the supply is already adjusting. Some of the best deals right now are found in newer subdivisions! For instances, one of my clients found a great home in a new subdivision. The price was already low, we negotiated & got a Fridge, Washer/Dryer, she picked the counters, cabinets, paint, flooring, & we got a fence, blinds & ALL of her closing cost paid for just 3,000 more than it was originally listed. The reason: it was better for that builder to start selling than to make payments! By the time her home was finished, it appraised for 17,000 MORE than what she paid for it!
Now, assuming that you are looking in the mid rage of price & size, I would say that prices will probably remain fairly stable through September & November. I think we will see a slight drop in the winter, but nothing to shout about. I really believe that by the end of next summer, we will see another booming market (barring a change in the interest rates).
That is all just my opinion though. No one can know the future & like Kaye said, prices can vary!
If I can help you in any way, don't hesitate to give me a call!

Bye for now,
Ray

Real Estate is local.. to find out what's going on in your market contact a local agent you respect. In my market, Southern Ca Beach Cities of Manhattan Beach, Hermosa and Redondo.. prices are holding steady and even going up for some properties. However go 5-10 miles inland and it's a different story.

The reality is that the answer depends on which area you live in. There are many factors that drive real estate prices, most of which centers around demand.

Some markets are still very hot, while others are cold.

I know that doesn't really answer your question, but if you are more specific, you will likely get the answers you want.