Rapidly Appreciating Market: Benton County Sees Property Values Soar
Residents in Benton County were recently confronted with a significant increase in their property values following a countywide appraisal in 2024. The rise in property values reflects a hot real estate market fueled by aggressive demand and limited supply
According to Benton County Assessor Roger Greaves, people moving to Northwest Arkansas drive up property values, leading to a significant surge in the tax base. For homeowners, this means larger tax bills unless they are over 65 or disabled and apply to freeze their taxable value
The appreciation of property values is a nationwide trend. As noted by Mike Simonsen, President of Altos Research, there has been a steady rise in home prices due to a balance of moderate demand and slowly increasing inventory
In Benton County, the taxable value of properties is protected by the Arkansas Property Tax Relief, which limits the annual tax increase to a maximum of 5% for residential properties and 10% for commercial or investment properties. This relief ensures that the increased property values do not directly translate to drastically higher taxes
Insurance agents also emphasize the importance of updating home values to ensure that homeowners have adequate coverage. According to Jeff Danley, an insurance agent, replacement cost is a key factor to ensure that homeowners are covered for the full cost to rebuild if needed, regardless of the market value assessed by the county
The dramatic surge in property values across Benton County has been fueled by the thriving real estate market. Homeowners who disagree with their assessed values can contact the county assessor’s office to discuss the matter further
Signs of a Changing Market
While property values continue to rise, some signals suggest a shift toward a cooling market. For instance, price reductions are increasing, indicating that sellers are becoming more motivated to make deals. This trend may be an early sign of a market top before a potential decline
Mike Simonsen also notes that the dynamic of home purchases has changed. Floridans and Texans are feeling the effects of rising costs, including taxes and insurance, which may slow down the market in those regions. Overall, local markets are gaining momentum, and subtle shifts in the national market are beginning to appear
