Fayetteville Arkansas, University of Arkansas--Old Main Overview

Fayetteville Arkansas, University of Arkansas--Old Main Overview
Overview of Fayetteville, AR

Sunday, December 16, 2007

NW Arkansas Weathering the Mortgage-Crisis Storm

According to an article published in the last few weeks in the Arkansas News Bureau, the mortgage crisis in Arkansas is not as severe as national media would have us believe.

Governor Mike Beebe is quoted as saying, "I've talked to the state bank commissioner about the housing market and have been assured that Arkansas bankers, lenders and consumers have been more responsible than those in some other parts of the country."

Arkansas was ranked 17th nationally in foreclosures in October 2007, which was about the same as a few years ago during the boom according to RealtyTrac, an on-line marketplace for foreclosure properties.

There is some debate as to whether sub-prime lending caused the foreclosures or adjustable rate mortgages resetting at considerably higher rates. But another thing to consider is the number of builders being foreclosed due to overbuilding in our area as opposed to individual homebuyers.

Whatever the answer, the effect of foreclosure sales is downward pricing. For the most part, although prices have decreased due to supply and demand issues (i.e. oversupply of homes) as well as some foreclosures and sales of bank-owned properties, I don’t think we’ve encountered the level of price decreases in NW Arkansas that other parts of the country are experiencing.

The result is that this is probably the optimum time to invest in real estate in NW Arkansas—despite the negative stories in the national media. With prices lower, a huge selection of homes on the market in all price ranges, and low interest rates, I would suggest that buyers get off the fence and start buying before interest rates creep up again and the supply of homes diminishes, resulting in higher prices.

But buyers do need to be careful. There are a lot of overpriced properties out there, as some sellers haven’t gotten used to the current buyer’s market yet. A reputable buyer’s agent will do a market analysis for his buyer to determine a fair market price.

For sellers, it’s important to work intelligently with their agents when an offer does come in. If the seller doesn’t want to accept a particular offer he may lose the sale. In this market a counter offer from the seller may make the buyer select a different property and an opportunity to sell the home quickly may be lost. Buyers hold the winning cards now and there are a lot of homes to choose from.

For more information:

Read my blog posting October 6, 2007 “What’s the Mortgage Crisis All About?”


Saturday, December 01, 2007

No Shortage of Hotel Rooms in NW Arkansas

Have you ever given much thought to whether there are enough hotel/motel rooms in a given area? If you’re like me the answer is probably “No.”

We’re all used to seeing these establishments but I was surprised to learn recently just how many rooms are available in our area and how many more are under construction.

Currently there are some 7,000 rooms in the four cities of Bentonville, Rogers, Springdale and Fayetteville. In the next six months, as many as 1,000 more will be ready to serve travelers.

Bentonville has the highest occupancy rate of all – 95% on Monday through Thursday nights. That’s understandable when you consider all the business people who come to town to do business at Wal-Mart’s home office. On Friday, Saturday and Sunday nights the occupancy drops off appreciably.

Fayetteville normally has a higher occupancy rate on weekends than weekdays but except for University of Arkansas sporting events and Bikes, Blues, and Barbecue it’s probably fair to say that city does not enjoy occupancy rates approaching 95%. But that doesn’t seem to slow construction of still more hotels.

Rogers expects to add at least 300 more rooms when several establishments are completed in 2008. That will bring their count to some 2,500 rooms.

Springdale has approximately 1,500 rooms and will no doubt need more when the new baseball stadium opens next spring.

I am just amazed at these numbers and what it all means to the overall economy of NW Arkansas!

For more information: