In the last 10 years, Little Rock has experienced some of the highest home appreciation rates of any community in the nation. Little Rock real estate appreciated 34.50% over the last ten years, which is an average annual home appreciation rate of 3.01%, putting Little Rock in the top 20% nationally for real estate appreciation. For a real estate investor, Little Rock definitely has a track record of being one of the best long term real estate investments in America through the last ten years.
Over the last year, Little Rock appreciation rates have trailed the rest of the nation. In the last twelve months, Little Rock’s appreciation rate has been 3.28%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout’s data show that house appreciation rates in Little Rock were at 0.53%, which equates to an annual appreciation rate of 2.15%.
Relative to Arkansas, our data show that Little Rock’s latest annual appreciation rate is higher than 60% of the other cities and towns in Arkansas.
Vacant housing appears to be an issue in Little Rock. Fully 14.40% of the housing stock is classified as vacant. Left unchecked, vacant Little Rock homes and apartments can be a drag on the real estate market, holding Little Rock real estate prices below levels they could achieve if vacant housing was absorbed into the market and became occupied. Housing vacancy rates are a useful measure to consider, along with other things, for a real estate investor.
The median sales price of a non-distressed home was $154,400. The median sales price of a foreclosure home was $67,575, or 56% lower than non-distressed home sales. There are currently 191 properties in Little Rock, AR that are in some stage of foreclosure (default, auction or bank owned) according to Realtytrac.com. Another opportunity for the savvy cash investor to negotiate prices with motivated sellers.
Is this area perfect for Real Estate deals going on right now?
With the history of positive appreciation in the Little Rock area, a rental property (based on the much higher than average rental rates) could be a profitable investment for the savvy buy and hold investor.