NW Arkansas Real Estate Blog

Crystal Bridges Museum of American Art put Bentonville on Travel and Leisure's Top Travel Destinations List

2012-01-02T12:53:00.004-06:00

You don’t have to make an appointment any more to visit Crystal Bridges. I found that out recently, when I visited for the first time with my artist/musician son who was home for the holidays. And it’s a wonderful place.

Crystal Bridges Museum of American Art is a treat for the senses. There are so many wonderful works of art that I can’t begin to cover them all in my blog, but I hope to pique your interest.

Just to know our little corner of the world is home to this beautiful museum is enough to make us all proud. The brainchild of Alice Walton, longtime art collector and daughter of Wal-Mart founder Sam Walton, created much controversy when she announced her plans in 2005. Some of the so-called ‘upper crust’ in art circles were aghast that major works would be somehow ‘lost’ in the Midwest.

The art is far from lost! It is alive and well and displayed in a work of art itself. The 201,000-square-foot museum, designed by the famed architect Moshe Safdie, is set beautifully into natural surroundings. Visitors will find eight linked pavilions bordering two large pools, which are fed by Crystal Spring. The architecture alone would be worth the trip even if it didn’t contain this marvelous collection of art from colonial to contemporary times. The pools are still in the process of being filled, however.

Even a brief glance at the list of art included within the collection shows there is something for everyone: Rosie the Riveter by Norman Rockwell, Asher B. Durand's Kindred Spirits, Maxfield Parrish's The Lantern Bearers, and Andy Warhol’s Dolly Parton. The “Rosie” work is not the famous one that everyone usually sees, however. It’s a different one.

There are eight trails on the wooded 120-acre property. I can’t wait to see dogwood trail in the spring! Also located outside is the sculpture garden.

Some of the educational offerings will include Skyspace Discussions, Shifting Perspectives with Nature, and Wonder World. Wonder World has some really interesting contemporary stuff, including a version of the Last Supper made entirely of spools of thread.

Perhaps one of the most outstanding offerings at the museum is the price of admission. Admission is totally free thanks to a $20 million donation by Wal-Mart Corporation.

Wal-Mart Family Foundation has pledged $800 million towards acquisitions, operations, and capital improvements, not to mention additional monies towards initial construction. Local philanthropists have also made additional generous donations.

This huge endowment puts it on a par with Museum of Modern Art in New York City.

Crystal Bridges Museum of American Art is already creating buzz in travel circles. Travel and Leisure.com lists it as one of the top destinations in 2012. The biggest buzz, of course, is among art lovers in the U.S. as well as overseas. It is such a huge boost to the art scene in NW Arkansas as well as local artists and aspiring artists everywhere.

I can’t sing too many praises about Crystal Bridges of American Art and its effects on the local economy. New businesses have already opened. A sparkling new hotel, 21c Museum Hotel, plans to open in January 2013. It will be similar to the original 21c in Louisville. Out-of-state visitors have already arrived and many more are coming.

You simply must go. If you’ve already been, go again. That’s what my friends and I plan to do. Just don’t go on Tuesdays. That is the one day each week when the museum is closed.

For more information visit the Crystal Bridges Website.

And here are a few informational newspaper articles from Arkansas Business, the New York Times, NY Times Travel Section, and Travel and Leisure magazine. For a great picture of the museum, click here.

Craft Fair Weekend in NW Arkansas

2011-10-14T17:08:00.003-05:00

It's a little late--I forgot all about it. But this weekend is one of those weekends that you either want to get out to all of the craft fairs or stay home to avoid the traffic.

It used to just be War Eagle, but now there are many venues. Here are some of them:

Bella Vista Arts & Crafts Festival
8-5 Friday and Saturday, 1991 Forest Hills Blvd in Bella Vista
Info: 479-855-2064 or www.BellaVistaFestival.org

Spanker Creek Farm Arts & Crafts Show
8-5 Friday and Saturday, 9-4 Sunday, 8464 W. McNelly Rd, Approximately 1/2 mile east of Walgreens and Lowe's in Bentonville
Info: 479-685-5655 or www.spankercreekfarm.com

War Eagle Mill Arts & Crafts Fair
8-5:30 Friday and Saturday, 8-4:30 Sunday, 11045 War Eagle Road near Rogers
Info: 866-492-7324 or www.wareaglemill.com

War Eagle Fair
8-5 Friday and Saturday, 8-4 Sunday, War Eagle Mills Farm near Rogers
Info: www.wareaglefair.com

Sharp's Show of War Eagle
8-5 Friday and Saturday, 8-4 Sunday, Adjacent to War Eagle Mill near Rogers
Info: 479-789-5683

Frisco Station Mall Arts & Crafts Festival
10-9 Friday and Saturday, 11-4 Sunday, Frisco Station Mall in Rogers
Info: 479-631-0006

Northwest Medical Auxiliary Arts & Crafts Fair
9-6 Friday and Saturday, The Jones Center in Springdale
Info: 479-756-8090 or www. thejonescenter.org

Ozark Regional Arts and Crafts Festivals
9-9 Friday and Saturday, NW Arkansas Convention Center in Springdale at 1500 S. 48th St. and the Embassy Suite Convention Center in Rogers at 3303 Pinnacle Hills Parkway
Info: 479-756-6954

Fall Craft Extravaganza
7-2 Saturday, 9-2 Sunday, Fayetteville Square
Info: 479-236-2910 or www.fayettevillefarmersmarket.org

Now is the Perfect Time to Buy a Home in NW Arkansas

2011-10-13T20:35:00.002-05:00

Here’s a very brief look at the current housing scene in NW Arkansas…

If you are a buyer, the opportunities are phenomenal right now. Mortgage rates are at historic lows and by historic I don’t mean the past 10 or 20 years. I mean interest rates have never, ever been this low, at least since they’ve been keeping track.

Even a couple of years ago, no one ever thought possible such rates as 3.5% on at 15-year fixed-rate mortgage or 4.25% for a 30-year fixed rate mortgage. This is simply fantastic for anyone looking to purchase a home and those rates are available right here in NW Arkansas.

The other truly bright spot is the average cost per square foot continues to drop. In fact, prices are back to 2004 levels. I realize this is terrible news for sellers but what a fantastic opportunity for buyers.

Even when home prices were this low in 2004 or thereabouts, interest rates were much higher.

So right now, you could say this is a “perfect storm” situation for buyers.

Apparently many people are taking note of this. Sales of homes in NW Arkansas rose approximately 20% compared to this time last year.

As a Certified Residential Specialist, I am ready, willing and able to help you take advantage of this great buyer’s market. Call me at 479-966-0435.

For more information:

Ozarks Unbound Blog
Arkansas Business-1
Arkansas Business-2
Arvest Bank

Bikes, Blues & BBQ Rally is Bigger Than Ever

2011-09-23T08:33:00.001-05:00

Get ready for an even bigger and better Bikes, Blues and Barbecue Rally in NW Arkansas this year. Each year since inception in 2000, the rally has added more of everything. The growth has been phenomenal in just a few short years.

The fun begins next week--Wednesday, September 28 and doesn’t slow down until midnight October 1.

Hundreds of thousands of people flock each year to a number of venues in Fayetteville. This year the Rally will expand to include two days of events at Parsons Arena in Springdale.

There will be motocross, professional and amateur racing, Harley-Davidson Village, Parade of Power on Saturday, music, food, plenty of vendors, BBQ competition, Miss BBQ competition and way more.

The best parts of all are it’s good family fun and all proceeds go to local charities such as Big Brothers Big Sisters, Meals on Wheels, Horses for Healing, CASA, Peace at Home Shelter, and many others.

More than $600,000 has been donated so far.

Let’s all go have fun for a good cause.

For more information, check the BBBQ website.

Here We Go Again – Another “Best Places” Award for Fayetteville

2011-09-06T10:00:00.002-05:00

Another honor for Fayetteville, this time by Southern Living Magazine. This time for being one of the best college towns in the nation.

Fayetteville has been recognized repeatedly by Kiplinger Magazine, U.S. News & World Report, Sperling’s Best Places, Forbes and others.

Southern Living took a different perspective for their rankings. Their report focused on best college towns. They excluded towns with populations over 200,000 because they were looking for towns where the colleges/universities provided a very strong impact on the town’ standard of living and economies.

Thus it is no surprise to see Fayetteville ranked #17 overall. Our city offers a lively social scene with support of the arts, affordable and attractive restaurants, and many independent shops with everything students want.

Other factors Southern Living found positive about Fayetteville are a dedicated and active alumni base and good old-fashioned Southern charm.

I’m always happy to see prestigious organizations recognize the many positive aspects of living in NW Arkansas.

Crystal Bridges Museum to be Free To All – Forever

2011-07-30T10:51:00.003-05:00

What a wonderful gift! The Crystal Bridges Museum of American Art in Bentonville promises to be a premier destination for people from all walks of life and now, thanks to an endowment from Wal-Mart Stores, Inc., it will be free to all visitors.

Northwest Arkansas is a remarkable place to live, but most of the cultural events have been centered in Fayetteville with concerts and other events associated with the University and the Walton Arts Center. Then Alice Walton, only daughter of Wal-Mart founder Sam Walton, announced plans to build a major art museum in Bentonville, Arkansas.

The grounds and exterior of the buildings are extraordinary. I’ve seen the plans and 3-D models and I look forward to seeing them come to life. Many of the acquisitions of American art made so far are formidable, and the collection continues to grow.

For some people, seeing the exterior is perhaps all they could afford. With that in mind, Wal-Mart Stores, Inc., has announced a $20 million endowment to the museum, which will allow free admission to all visitors in perpetuity. Indeed, Wal-Mart’s $20 million gift is a gift to us all.

In addition to Ms. Walton’s personal backing, the Walton Family Foundation recently pledged an $800 million endowment for acquisitions, operations, and future capital improvements. That gift is probably one of the largest ever to an American museum.

So mark your calendars. The grand opening is scheduled for 11-11-11 (November 11, 2011.) I wouldn’t necessarily recommend trying to visit on opening day, but do plan to go at your convenience. It will be worth your time.

In an era where the arts nationwide have repeatedly hit the budget chopping block, a gift like this assures a continuing contribution to the quality of life of NW Arkansas. The museum will expand cultural and economic development not only in Bentonville but also throughout the area. What an opportunity for us all.

For more information about the endowment, click here. The Crystal Bridges website has more information about the building, grounds, collection and programs.

Savings for Everyone August 6-7—Sales Tax Holiday

2011-07-16T22:25:00.002-05:00

Everyone enjoys a nice holiday. The word holiday evokes family gatherings, perhaps a paid day off from work, or a trip to see grandma (or the grand kids).

How about a holiday from sales taxes on everyday items? This is a holiday unlike all others. It’s a real break for families.

For 48 hours, beginning 12:01 a.m. August 6th and ending at 12:00 p.m. August 7th, state and local taxes will not be collected on a long list of items families normally buy, especially for school. For example, all clothing costing less than $100 per item will be exempt from any sales tax. Accessories and equipment costing less than $50 per item will also be exempt. I would venture a guess that not many families are planning to buy articles of clothing costing more than $100 each.

The Arkansas Legislature passed this law in 2011 as a way to keep shoppers from going to neighboring states to take advantage of sales tax holidays there, especially at get-ready-for-back-to-school shopping.

I think this break was long overdue. Families can now do their shopping at Arkansas merchants and save gasoline at the same time.

The list of items exempt from sales tax on August 6-7 is quite generous. It includes most every normal school need you can think of: books, binders, book bags, pens, calculators, notebooks, lunchboxes, and even certain art supplies. Of course, textbooks, maps and reference materials are also included.

Many items not usually associated with back to school needs are also exempt from sales taxes on the holiday. I’ve previously mentioned items of clothing less than $100 each. The tax-exempt items include accessories such as cosmetics, wigs, wallets and purses, jewelry and watches, belts, umbrellas, and more. Accessories are limited to items costing less that $50 each.

The sales tax holiday is such a boon for average people. Between state and local taxes, most of us in NW Arkansas pay 9.25% sales tax on every item listed above. The easiest way to comprehend the savings is to round the tax to 10%. If you spend $100 on the holiday weekend, you save $10 in tax. If your local store were offering a 10% discount, people would be lining up to take advantage of the sale.

It’s interesting to note the list of tax-exempt items includes things most of us would probably overlook when getting ready for back-to-school shopping. I would not have thought about diapers, receiving blankets, swimsuits, uniforms and neckties.

So mark your calendars now for big savings August 6-7. It’s the only weekend all year where you can have a tax-free holiday.

For more information, click here.

Help the Bride and Groom Buy a House: FHA Bridal Registry

2011-07-10T10:17:00.000-05:00

It’s too late for the June weddings, but maybe for those getting married in July and August and beyond this would be a possibility. I just found out about a really nifty way to help those about to be married purchase a home—establish a Bridal Registry account for their down-payment.

This novel idea has been around since the ‘90s but has received little publicity. A part of the FHA Bridal Registry Gift Funds program, all approved FHA lenders are automatically eligible to participate .

Here’s what the Bride and Groom need to do:

• Open a savings account named "Bridal Registry Account” at your bank prior to the wedding.
• Give the account information to friends and family who make deposits on your behalf.
• The entire gift funds can go towards the FHA required 3.5% down payment.
• If someone gives you a monetary gift directly, you can deposit the funds in the account.

More good news:

• You do not have to married prior to closing date.
• You do not have to provide FHA with any documentation other than proof of the "Bridal Registry Account.”
• This does not have to be your first home purchase.
• If you decide to not buy a home, you may withdraw the funds to use as you like with no penalty.

Without a "Bridal Registry Account,” the FHA normally requires a gift letter and certification of the source of funds for your down payment. With the account, your documentation is greatly simplified.

This program can be such a boon to couples as they start out in life. In addition to helping them acquire the funds to buy a home, it eliminates the consequences of receiving duplicate or unwanted gifts.

If you know folks who are planning to marry, pass this information along to them. Now we just have to find a lender who is knowledgeable about the program and who can help set up accounts. 

For more information, click here:

Housing Shortage -- Are You Kidding Me?

2011-07-01T13:57:00.002-05:00

Can you wrap your mind around a possible housing shortage in the next decade? For the most part all we hear are statements of doom and gloom. You know what I mean: “Foreclosure rate remains high,” or “Another builder has gone bankrupt,” or “Home prices slip again.”

Indeed, the real estate market in general has taken a beating since the economy began to tank a few years ago. When unemployment began to climb, people were forced to change their living arrangements. Many young people continued to live with their parents instead of buying starter homes. Many older folks stayed in homes that no longer had mortgages. Still another group whose homes had been foreclosed were forced into rentals.

With housing inventories at all time highs, many builders stopped building new homes.

Now that the economic picture is getting brighter and interest rates on mortgages are very, very low, the cycle is beginning to turn.

A recent study from Harvard University indicates demand will call for 16 million new homes during the next 10 years. The demand will be fueled by increases in population and immigration, young folks looking for their first home, baby boomers wanting to downsize, and demand for second homes.

Rent prices have increased and if that trend continues, as seems likely, more renters will return to home ownership.

So, the demand for so many homes does seem possible, maybe not right away, but don't discount the possibility.

Click here for more information.

Extreme Weather and the Housing Market

2011-05-28T12:52:00.002-05:00

The awful weather throughout southern U.S. has affected so many lives with devastating results--tornadoes, extremely heavy rains, flooding, hail and associated miseries of all kinds. Just a week ago the tornado in Joplin, Missouri caused at least 135 deaths. And other tornados affected communities in central Arkansas.

Such extreme weather also causes indirect damage to the housing market. It is next to impossible to show homes in such threatening conditions. If any good can be found at all, it’s that heavy rain clearly illustrates which properties are subject to flooding.

The latest reports shows sales of homes in Arkansas down 23% in April compared to April 2010.

In Benton County, sales were down 18% with 303 homes sold vs. 371 in April last year.

Washington County results were similar: sales down 19% with 205 homes sold vs. 254 last year.

Results do vary by town, however. Although Benton County as a whole experienced fewer sales, in Bentonville itself, sales were up in April compared to last year: 72 compared to 67 last year, according to the NW Arkansas MLS. Similarly Rogers had the same number of sales both years in April—98.

For Fayetteville, 108 homes were sold last year in April compared to only 82 this year. And Springdale was also down significantly, 115 homes sold last year in April compared to 98 this year.

But we must remember that due to government tax credits for home purchases in the early months of 2010, April had more home closings that any other month last year.

The housing market in NW Arkansas does exhibit seasonal characteristics—more sales in the spring and summer, fewer in the winter. And although the lower sales in April this year have not all been weather-driven, it is often a factor. I am hoping for some calm, comfortable weather soon. So far, 2011 has been breaking the weather records.

Click for More information

Housing Sector Still Struggles, But Some Bright Spots Appear

2011-05-14T18:33:00.006-05:00

On Friday I went to the Quarterly Business Analysis Breakfast sponsored by the U of A Center for Business and Economic Research. I like to go to these events because usually Kathy Deck, the director of the Center, gives incisive and informative economic data about Arkansas as a whole and NW Arkansas in particular. This usually confirms and explains what I see on a day-to-day basis as a real estate agent in the trenches.

Her presentation on Friday was basically positive, compared with previous meetings. The economy is getting better, according to the indicators she talked about--measures like GDP growth, Consumer Sentiment, Inflation, Unemployment, Job Growth, and the like.

The key to the real estate market in NW Arkansas is employment, and it appears that we're ahead of the curve compared to the rest of the state and to the US as a whole. If we don't have jobs, people will not want to move here. And if we don't have jobs, even people already here won't be able to buy a house. Increased employment will bring more home sales in the short term, as will seasonal factors.

But the construction sector will not lead economic growth in the near future according to Deck, rather it will follow it. And the tax credit of last year is long-since past. In addition, there is a large inventory of homes on the market, not to mention a full pipeline of foreclosures. These will continue to put downward pressure on prices.

The housing situation may be a bit brighter for some. It depends largely on an individual’s financial status, goals, and whether he is buying or selling. Home affordability in NW Arkansas, as well as nationwide is higher than it has been for a long time. And interest rates remain very low.

Nationwide the glut of unsold houses on the market is shrinking and absorption is occurring. No matter who you are, that is good news. But the glut (including foreclosures) has to be sold off before prices can stabilize. Prices will not begin to rise again until that glut is substantially gone.

Unfortunately, foreclosures are still occurring at a fairly high rate and for a time may even increase once mortgage holders work through the investigations into their sloppy foreclosure practices of the past.

Recent national statistical measures indicate sales are increasing when compared month over preceding month. However, year over year sales are down because sales in the early months of 2010 were artificially higher due to the homebuyer’s credit, which expired last June.

In some markets, prices seem to be at or near the bottom and investors are snapping up homes to rent out while they wait for the inevitable price increases.

Meanwhile, renters are feeling the impact from many sides. Owners who lost their homes through foreclosures were forced into the rental market. Builders stopped building new apartments when the economy turned sour. Some older apartment buildings have been torn down while other apartment complexes were turned into condos. More people wanting to rent fewer apartments means higher rents. The sad part is many lower income families are paying as much as 50% of their income on rent and utilities.

The March 2011 interest rate on a 30-year fixed rate mortgage was 4.84% - an excellent rate. But banks and mortgage companies are requiring higher credit ratings and higher ratio of income to monthly mortgage payment. I’m sure this is their response to the ridiculously low standards they used in the past – the standards that caused the whole housing debacle in the first place.

If lenders would return to the ratios that were in place for years before the debacle, more credit worthy borrowers would qualify to buy a home.

As the economy continues to improve, buyers will become more confident about the positive aspects of home ownership. There are already more buyers out looking, and as the spring progresses and the economy continues to improve, this will increase.

The housing sector will probably continue to struggle for awhile yet, but there are bright spots and I am seeing glimpses of more to come.

For more information:

Arkansas Business Journal
RISMEDIA
National Association of Realtors
Washington Post 1
Washington Post 2

Taxes – A Fact of Life in NW Arkansas as Elsewhere

2011-04-22T12:17:00.001-05:00

Just as the deadline for filing income taxes passed, counties started mailing out property tax bills for real estate and personal property. Individuals as well as businesses are subject to property tax.

There are a few changes this year – designed to make paying taxes a bit easier. The deadline has been October 10th for several years. The state legislature decided that changing the deadline to October 15th would help people remember it better. We all have April 15th imprinted on our brains so I guess now we can add another permanent mark there for October 15th.

The other change allows owners to pay their taxes in installments. People can pay any or all tax due at any time between the first business day in March and October 15th. There is no limit to the number of payments that can be made. This is helpful for people who would rather pay as they go, perhaps monthly, than to be hit with the whole amount due at one time.

Arkansas has a couple of quirks in its tax code and these sometimes cause problems for new residents and even some large businesses with home offices elsewhere.

For example, property owners must call or visit the appropriate county assessor each year between January 2 and May 31. At that time, they “assess” their property – meaning to make it known to the assessor that they own or lease items subject to tax. A wide range of items is considered taxable – cars, trucks, boats, office equipment and furniture, warehouse and manufacturing equipment, and most everything else a business uses. Individuals will soon discover they cannot register their car until it has been assessed.

But there are also quirks that prove highly beneficial to property owners who own the house they live in. Owner/occupiers receive a credit each year of up to the first $350 of property tax.

The other big benefit freezes appraised values of residences where at least one owner is either disabled or over age of 65. Completion of a simple form through the assessor’s office is all that’s required. The freeze results in a property tax that cannot increase due to a higher assessed valuation. The tax can increase only if improvements are made to the property or the millage rate increases.

Disabled veterans can sometimes qualify for no property tax on their residence. This depends on the degree of disability as certified by the Veterans Administration.

And, one more date to remember. July is the usual time of year that people can file protests to their tax bills. Just check with the appropriate county assessor to find out the procedure.

NW Arkansas’ Unemployment Rate Going Down--Again

2011-04-18T14:43:00.003-05:00

I’ve been hearing lately that unemployment figures are going down in NW Arkansas and the country as a whole. Nationwide, the rate for February 2011 was 9.5%.

Northwest Arkansas has had the good fortune all along to have considerably lower unemployment rates and it’s good to know that trend is continuing. Our rate for February 2011 was 6.7%.

The U.S. Department of Labor, Bureau of Labor Statistics, breaks unemployment rates into 372 Metropolitan Statistical Areas. Our MSA, which includes Fayetteville, Springdale, Rogers, and Bentonville, is ranked #43 out of the 372 areas. This is concrete proof that the economy in NW Arkansas is far better than the majority of the country.

Companies are hiring, especially in construction/trade, transportation and utilities sectors. Service sectors, i.e., professional, business, leisure, and hospitality services, also have shrinking unemployment rates. Government services is another area showing recovery.

Rising employment is exactly what’s needed to get the housing market moving again. People will soon rediscover the many good points about living in NW Arkansas.

Perhaps you have family and friends who would appreciate knowing what’s happening here.

Fayetteville Square Has Free Wi-Fi Access for the First Day of Farmer’s Market

2011-04-02T14:15:00.003-06:00

Today’s the day. Free Wi-Fi Internet access for Fayetteville Square. Cox Communications volunteered to install the transmitters necessary for the interconnected network. Plans were to have everything ready to coincide with the first day of Farmer’s Market today, Saturday, April 2.

I think this is terrific. Many other cities now have publicly sponsored hot spots. It’s nice to think of our quaint downtown Fayetteville Square keeping up with the technology that so many people rely on these days. It wasn’t too many years ago when something like this would have been laughed at as science fiction. Now Fayetteville can offer speedy connections to everyone: vacationers, students, and business people alike.

Just adds to the quality of life in Fayetteville.

University of Arkansas-Fayetteville Receives More First-Class Recognition

2011-03-17T17:55:00.005-06:00

The U of A has just been recognized as being among the top public law schools in the country according to the U.S. News and World Report 2012 edition of America’s Best Graduate Schools. In ranking the School of Law, U. S. News methodology included a peer assessment score as well as assessments by lawyers and judges. Other factors included student/faculty ratio, post-graduation employment rates, and bar exam passage rates.

And the recognition was not limited to the law school. The full-time Master of Business Administration program in the Walton College at U of A was also ranked high, as was the part-time MBA program. Both full-time and part-time programs are listed in the top tier of their categories nationally: full-time program ranked 51st and the part-time program ranked 50th among both private and public institutions.

U.S. News went on to rank U of A’s rehabilitation counseling program in the College of Education and Health Professions as among the top 22 nationally. Specifically, it ranked as #14 among public universities and #16 when private universities are included in the tally.

The industrial engineering graduate program of College of Engineering was also ranked high - 25th among all graduate programs in the country. When compared only with other public universities, its ranking moves up to #18.

All this means that, again, U of A is recognized as top-notch. It’s heartening to see the high quality faculty and students recognized for their hard work and that work translates to meeting the economic, social and education needs of Arkansas at the highest level.

For more information: U of A Newswire

University of Arkansas Earns Highest Ranking from Carnegie Foundation

2011-02-27T21:44:00.002-06:00

Good News! U of A has just announced that the Carnegie Foundation for the Advancement of Teaching has upgraded the university’s status to the highest possible rating for research. Prior to the latest announcement, U of A was ranked in the next-highest classification.

For many years, Carnegie Foundation’s rankings have been broadly recognized as the standard categorization of accredited U.S. universities and colleges. Thus, this ranking further enhances U of A’s status and reputation throughout our state, our country and beyond.

The Carnegie Foundation based the classification on data from 2008-2010 in such areas as research expenditures and results, staffing, and doctoral conferrals. After examining 4,633 institutes of higher learning, Carnegie placed U of A in the top group which includes only 108 universities. Within the 108, the Foundation does not rank any one school as better than any other.

A ranking such as this helps in numerous ways – directly and indirectly. It will provide an important boost to recruitment of more top-notch researchers and superior students. As the quantity and quality of U of A’s research projects become increasingly recognized, more research grants will be received. And that means big benefits to NW Arkansas’ economy. Higher salaries equates to greater spending power in all categories from housing to restaurants, to shopping malls and groceries, houses of worship, ad infinitum.

It’s just a circle of good no matter how one looks at it.

I’ve known for some time that U of A programs and courses of study are top notch. I have a master’s in political science from U of A and I’m now taking classes in the Journalism department. The locals have known all along about U of A’s status. It’s a pleasure for me to help spread the good news. At last—it’s not a matter of “thank goodness for Mississippi” any more.

For more information, check the U of A announcement.

Census Results for Northwest Arkansas

2011-02-21T21:22:00.001-06:00

The results are in and it’s good news for Northwest Arkansas.

Fayetteville now has 73,580 people, a growth of 26.8% since the 2000 Census.

Springdale grew to 69,797 residents, an increase of 52.4%.

Bentonville’s growth of 78.9% topped all the cities in Arkansas. Its population is now 35,301.

Rogers experienced a 44.1% increase to bring its population to 55,964.

Little Bella Vista isn’t so little any more. It now boasts 26,461 people, an increase of 59.6%.

These are huge increases in a short ten-year span. To put them in perspective, total population in all of Arkansas increased by 9.1%. Little Rock, the state capitol located in Pulaski County, increased 5.7 percent, from 183,133 in 2000 to 193,524 in 2010.

Pulaski County itself grew 5.9%.

Benton County, which includes Bentonville and Rogers, is now home to 221,339 people. That’s a 44.3% increase.

Washington County, which includes Fayetteville and Springdale, now has 203,065 people, a growth rate of 28.8%.

It would appear Benton and Washington Counties are the driving force for growth in Arkansas.

As required by law, legislative districts must be redrawn after each ten-year census. The state must ensure that population in each of the districts is equal within 1% variation.

The result is that the geographical area of Congressional District #3 will shrink. It now includes Benton, Boone, Carroll, Crawford, Franklin, Johnson, Madison, Marion, Newton, Pope, Sebastian, and Washington Counties.

Arkansas has usually kept counties intact when drawing districts. Looks like that practice will have to be replaced with some counties being split for the first time.

So, change happens. All in all, the growth is good news for NW Arkansas. As our population grows, so does our influence and clout.

Let’s face it. No one wants to move to a declining area.

For more information: Census Bureau Website

What’s Happening to the Mortgage Interest Deduction for Homeowners?

2011-02-15T16:22:00.004-06:00

The Obama administration is trying, once again, to limit the amount of interest taxpayers can deduct when itemizing deductions on their federal income tax returns. One option would exclude citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Similar proposals have been made in the past two years but Congress did not approve the cuts.

Home ownership has been the American dream since long before I was born. The income tax deduction for mortgage interest is what makes ownership possible for many people.

Perhaps not in Arkansas as much as, let’s say, California or several other states, a $500,000 home is not a mansion. Indeed, it is more the norm for average families.

Everyone knows our country is deeply in debt. We must find sensible ways to cut spending and increase income. I just don’t believe homing in on average people trying to live a decent life in America is the way to do it.

Our government spent billions of dollars in “bailout” funds to big businesses, large banks, and other large firms which were deemed “too important to fail.” It continues to spend billions on unpopular wars. Does that somehow equate to letting American families fail?

Usually I prefer to not get too political here in my blog, but I must speak out. Yes, the current proposal to limit interest deductions is for mostly high-income people with high dollar homes, but where will it stop? It is one of the few deductions that “normal” middle class people have. The deduction has been around since 1913. That’s 98 years of helping families to stop paying endless rent and instead own their own homes.

The National Association of Realtors has indicated that the interest deduction is one factor bringing stability to the housing market. Limiting it at this time will create serious problems for consumers and worsen the entire real estate market. The trickle-down effect could be catastrophic.

For more information:

Realty Times
Fox News
Housingwire1
Housingwire2
Housingwire3

NW Arkansas Bike Trails

2011-01-28T21:18:00.002-06:00

Joining bike trails from Fayetteville to Bella Vista is closer to reality due to a grant from the Department of Transportation. $15 million will be provided through the “Transportation Investment Generating Economic Recovery Program.”

Fayetteville, Bentonville and other NW Arkansas towns have already created many existing bicycle trails. But the idea now is to join them all. Read More.

Walmart Jumps on the Healthy Food Bandwagon

2011-01-22T20:22:00.004-06:00

Walmart bashing is fashionable in some circles, but credit and recognition should be given when earned. They have made some excellent decisions in recent years, such as promoting sustainability and introducing “green” features in their stores.

Now Walmart has jumped on Michelle Obama’s healthy eating bandwagon. This bodes well in the fight to reduce childhood obesity and put healthier food on family dinner tables across the nation.

Our giant neighbor in Bentonville sells more groceries by far than any other retailer. Sheer size alone gives Walmart tremendous clout. It frequently pulls the strings that cause entire industries to shift priorities, such as recent labeling changes on their Great Value label and encouragement of other products to do the same.

Here’s a summary of what Walmart plans to accomplish by 2015:

*Reformulate packaged food to reduce salt by 25% and sugar by 10%.
*Remove all trans fats and hydrogenated oils from processed foods.
*Reduce prices on fresh fruits and vegetables.
*Lower prices on healthy-choice items such as whole-wheat pasta and low-sodium canned goods.
*Build stores in poor areas that don’t have grocery stores.
*Develop a logo for healthier items to make them easy to identify.

That’s quite an agenda for the next four years. Making food healthier while keeping the taste Americans have come to love will take a tremendous effort.

On the other hand, rarely does Walmart do anything that won’t make them more money in the long run. But this time the public good and their healthy food initiative may have common goals. The only other necessary ingredient is the average American--who also needs to jump on the bandwagon.

For more information:

Fayetteville Drops Thoughts of Action Over Walton Arts Center Expansion

2010-12-28T10:39:00.002-06:00

It seems the drama over action by the City of Fayetteville regarding a new Walton Arts Center in Bentonville has died a natural death.

When the announcement was first made that WAC would build a 2,200 seat performing arts center in Bentonville as well as a new 600 seat facility adjacent to the existing site in Fayetteville, there was talk about a lawsuit which, if successful, would deny WAC the right to build anywhere but in Fayetteville.

That idea did not gain much support. Next came a resolution put forth by two members of Fayetteville city council to renegotiate the current agreement with WAC, which does not expire until 2017. The resolution would require the renegotiation in order to make certain an equitable distribution of fundraising and programming for Fayetteville’s WAC.

That proposal was defeated 6-2 at a city council meeting last week.

Walton Arts Center staff has stated that it is committed to maintaining quality arts and entertainment in Fayetteville.

I think we should all move forward. It shouldn’t be Fayetteville vs. Bentonville. It should be what is good for all of Northwest Arkansas.

For more information:

My blog post a few weeks ago
Fayetteville Flyer blog

2010-12-24T15:07:00.000-06:00

Santa Came Early to NW Arkansas

2010-12-20T10:02:00.001-06:00

In this time of giving and good will the announcement last week seemed appropriate. Grants totaling $80,000 were awarded to local NW Arkansas non-profit groups.

The funds came from the 2010 Bikes, Blues and BBQ rally, which was held in early fall. It’s a substantial increase from 2009 grants of $45,000. I think the 2010 grants bring the grand total to more than $600,000 since BBQ’s first rally in 2000.

Donations went to many worthwhile organizations in NW Arkansas – Fayetteville Boys & Girls Club, Meals on Wheels, Horses for Healing, Seven Hills Homeless Center, Youth Bridge, Big House Youth Outreach, and more. A complete list of all grants will be available later.

Bikes, Blues and BBQ is the only rally in the country that donates all proceeds to charities. It brings together bikers from all over the country, thousands and thousands of spectators, family fun, food, entertainment, and contests. Its very presence is a big boost to the local economy.

Turning all profits over to non-profit organizations is only icing on the cake.

Plans Announced for Walton Arts Center(s) Expansion

2010-12-10T15:58:00.002-06:00

Bentonville will be the location of a new 2,200-seat Walton Arts Center. Hardly anyone was surprised at this news.

Several months ago, Walton Arts Center-Fayetteville was notified that the Walton Family Foundation would be lead donor only if the expansion were in Bentonville. This statement was crystal clear but it did not preclude proposals by various entities to build it elsewhere.

Fayetteville and University of Arkansas presented a joint proposal to expand the existing site in Fayetteville. Springdale proposed building a new WAC near the ballpark, which offered excellent access to I-540. Rogers offered a proposal and some individual landowners also made proposals.

So a new, larger performing arts center will be built at or near downtown Bentonville, but Fayetteville also received good news. A new 600-seat facility will be built adjacent to the beautiful, existing WAC. I believe this announcement intrinsically means Walton Family Foundation will continue to be the major supporter for Fayetteville WAC sites.

Exactly what “adjacent” to WAC means will be determined later.

As far as that goes, there are a lot of things to be determined in the future. Site selection, funding, timetables, cooperation from and with local governments, and space for additional parking in Fayetteville.

Talk of expansion has been ongoing for at least two years. Big deals take time and this is a big deal. The announcement by Walton Family Foundation is a win-win for both Bentonville and Fayetteville. To stop its support for WAC-Fayetteville would have been catastrophic for the city.
The announcement is certainly wonderful news for all of Northwest Arkansas.

But the drama is not all on-stage. The attorney for the City of Fayetteville is of the opinion that agreements signed in the past bind WAC to be located only in Fayetteville. He opines that Fayetteville should sue to stop the Bentonville site. At this point no official action has been taken. In the meantime, University of Arkansas issued a statement that it will not support a lawsuit. And in today’s paper, some Fayetteville officials have gone on the record against litigation, seeing it as divisive and counter productive.

The future looks bright to me. Let’s leave the drama to the actors. I’m all for culture, the arts, and good entertainment. The Walton Family Foundation has done and continues to do many good works for the people of Northwest Arkansas.

For more information:

Walton Arts Center
Walton Arts Center Expansion Plans

New Outdoor Ice Skating Rink Opens in Bentonville

2010-12-03T22:39:00.002-06:00

A beautiful new facility just opened in Bentonville’s Ernie G. Lawrence Plaza, just a block or so off the square. It includes an outdoor skating rink for winter and will be converted to an interactive water feature during warm months. What fun!

Ice skating is a wonderful activity for people of all ages. I grew up in Northern Minnesota-- hockey country--where I learned to skate on a rink like this. I spent many hours in the cold outdoors and it was exhilarating (but thank goodness also for warming shacks). I also tried my hand at ice hockey, even though it was a "boy sport" then.

For the most part, it doesn’t get cold enough here in NW Arkansas to find a safe outdoor venue for ice skating – until now. Bentonville’s latest contribution to quality of life now provides this opportunity to the public. Only $3 to skate and skates can be rented for only $2 more.

I’m still trying to figure out how they can keep the ice frozen when the temperature gets above freezing. The recent nippy days and nights are usually the exception rather than the rule, as it gets up to the 40s or even 50s during the day during our Arkansas winters. But if there is a secret formula for the ice, more power to the city of Bentonville.

The Jones Center for Families in Springdale has offered a big, beautiful indoor skating rink for the past 15 years and it is open year round. People can simply skate, learn figure skating, play in hockey leagues, or go curling. The rink provides fun for ages 4 to 104 (I don’t think anyone has reached maximum age yet!)

If you’ve never ice skated and would like to get inspired, here’s a great feature-length documentary for the whole family to watch.

NW Arkansas’s Economy Continues to Improve - Slowly

2010-11-26T20:47:00.003-06:00

Slow and steady seem to be the key words to describe improving economic conditions, in Arkansas as well as the country. We all wish the words could be dynamic or thriving – but let’s appreciate every bit of good news we get.

The U.S. Labor Department reported the economy added more than 150,000 jobs in October. That’s good news.

The average number of hours worked increased by 6 minutes. Doesn’t sound like much but it is good news because employers tend to increase employees’ work hours before adding new hires. Let’s face it, these days any increase in hours worked is good because people take home more money.

The number of first-time applicants for unemployment decreased. I don’t even have to tell you that’s good news.

But even better news has been happening all along in Arkansas.

Arkansas’ unemployment rate has consistently been about 2% lower than the national average, although it rose 0.1% in October compared to September to 7.8%. The national unemployment rate continued at 9.6%. The Fayetteville-Springdale-Rogers MSA* leads the state's metros with the lowest 2010 third-quarter jobless rate, at 6.3%.

Arkansas is ranked in the top 10 for states with the LEAST number of foreclosures.

Arkansas’ taxable sales were up 0.9% in the third quarter of 2010.

Projections are that Arkansas will show personal-income growth ahead of the U.S. rate at 6% for 2011.

Positive signs are beginning to appear. Keep your fingers crossed for the trend to continue. Why? Because the more jobs there are, the more people will want to move here and buy houses.

* Fayetteville-Springdale-Rogers MSA (Metropolitan Statistical Area) includes Benton, Madison, and Washington counties in Arkansas as well as McDonald County in extreme southwest Missouri.

For more information:

National Public Radio Report
Arkansas Business Report

Two More Awards Earned by NW Arkansas Communities

2010-11-17T09:12:00.000-06:00

There are so many valid and varied reasons for the outstanding quality of life we enjoy in NW Arkansas. I’ve written many times about clean air, beautiful scenery, recreation opportunities, entertainment, and more that all of us more or less take for granted.

Now I’m pleased to note that the cities of Bentonville and Fayetteville have each been named a Volunteer Community of the Year. The award was given by the Office of Governor Mike Beebe. A total of 12 awards were given throughout the state.

It’s the second year in a row Fayetteville has earned the title. For Bentonville, it’s the first year (and I’m sure there will be more awards in the future.)

According to city of Bentonville, 12,000 volunteers worked in excess of 163,000 hours during 12 months ended August 31, 2010.

Fayetteville, with its much larger population, logged 38,000 volunteers who donated more than 500,000 hours.

Volunteers serve in a multitude of ways – on committees and boards, in libraries and schools, animal adoptions and shelters, recycling, community events, food pantries, and more.

Every one of these wonderful people deserves our thanks for helping to make our communities great places to live.

My hat is off to them. It’s nice to see them receive some official recognition.

Fayetteville does it again!

2010-11-13T16:37:00.004-06:00

The Home Depot Foundation’s Sustainable Cities Institute has awarded the City of Fayetteville a half million dollars to increase long-term solutions for green planning and development. Fayetteville is one of only 2 cities nationwide out of 37 who applied to get the grant.

Initial plans are to build 40 ENERGY STAR-certified homes for low to moderate-income families in the Walker Park neighborhood. In addition to building to meet LEED standards, the design will maximize tree canopy conservation and will consider urban cooling eco-services. A section of the trail system will be extended to the neighborhood and a community garden is also included in the plan.

For more information, click here.

NW Arkansas Craft Fair Weekend Locations

2010-10-14T19:16:00.000-05:00

Come join the throngs of vendors and buyers at arts and crafts extravaganzas throughout NW Arkansas October 14th through 17th. But don’t wait until the 17th. All the best items will already be gone and some of the shows close on the 16th.

These shows attract people from hundreds of miles away. Each year the shows grow larger and new vendors vie for available slots to show and sell their handmade, unique items. It’s estimated some 200,000 people will flock here this weekend – and the weather is perfect! Bright, clear, sunny, with temps in the seventies. I can’t imagine a better time to view all the goodies, and admission is free.

Here’s a quick rundown of locations with addresses and indications of whether they are open on Sunday or not:

Bella Vista
1991 Forest Hills Drive (intersection of AR 279 and AR 340)
Closed Sunday

Spankler Creek Farm
8334 W. McNeely Rd., Bentonville
Open Sunday until 4 PM

Southern Suzy’s Craft Fair (Indoors)
Indoors at Clarion Hotel
211 SW Walton Blvd, Bentonville
Open Sunday until 2 PM

War Eagle Fair
11045 War Eagle Rd (east of Rogers) or Hwy 303 North from Hwy 412 (east of Springdale)
Open Sunday until 4:30 PM

Sharp’s Show of War Eagle
(next to War Eagle Fair – see above)
Open Sunday until 4 PM

Frisco Station Mall (Indoors)
100 N. Dixieland, Rogers
Open Sunday until 4 PM

Ozark Regional Shows (Indoors- 2 locations)
John Q. Hammons Center
3303 Pinnacle Hills Pkwy, Rogers
and
Holiday Inn
1500 S. 48th St., Springdale
Both shows are closed on Sunday

Jones Center (Indoors)
922 E. Emma Av., Springdale
Closed Sunday

Walton Arts Center Hits a Home Run

2010-10-10T16:30:00.002-05:00

It’s the post season for baseball, so this analogy seems appropriate. Last evening I attended the 2nd concert of the Walton Arts Center’s 10x10 series. This is a series of concerts priced at the ridiculously low price of $10 per ticket in an effort to get more people to attend events at the WAC. There will be 10 of them during this concert season of various kinds of music, dance and other events. The first one was a chamber music concert on Friday by the Chamber Music Society of Lincoln Center (New York).

The concert I saw last night was an unforgettable experience--an evening with Omara Portuondo, an 80-year-old “torch singer” in the old tradition from Cuba. She was accompanied by a group of 5 top caliber jazz musicians (Latin jazz).

Portuondo is a funny, charismatic, extremely talented singer, who (although she spoke entirely in Spanish) was able to communicate with the audience and establish a rapport early on. Through hand gestures she got everyone clapping and participating.

Sometimes it wasn’t immediately evident what she wanted us to do, but eventually we caught on. For example, at one point, she bent down and began chanting, which the audience was also supposed to do. We didn’t, until she stood up and stated loudly the only words in English that she spoke all evening: “pig sooie.” She had done her homework and had us calling the Razorbacks in the middle of her concert, mostly of very old songs in Spanish from the 40s. The only one that most people probably recognized was Guantanamera, and also perhaps Beseme Mucho.

The piano player was extraordinary, as were the other musicians: a bass player, guitarist, and two percussionists, one on a normal drum set and the other on other percussion instruments like conga drums, special sound effects, etc. The concert was structured like a jazz set and Portuondo gave each musician a chance to solo and shine various times throughout the concert.

I had never heard of this lady before, but according to her bio, she is a legend in her own country. It’s really a shame that politics gets in the way of art, where the Cuban trade embargo has deprived us of such extraordinary music for such a long time. I would have liked to see this lady in her prime.

And I applaud the Walton for bringing an event such as this to NW Arkansas. We really are lucky to have such a facility here where we can hear great music, see Broadway shows and dance troupes, as well as many other sorts of entertainment. This concert was totally unexpected, from my point of view, and it made me realize that I really do like Cuban music.

For information about upcoming concerts in the 10x10 series as well as other events at the Walton Arts Center, click here.

The Recession Supposedly Ended in 2009 – Who Knew?

2010-09-29T14:34:00.003-05:00

The powers that be (The National Bureau of Economic Research) have declared the recession over – going so far as to say it actually ended in June 2009. I suppose that’s good news to politicians and statisticians but most regular families don’t believe it and have not seen any proof of it.

Statistics by academic economists don’t impress an unemployed person who is struggling to pay his bills and feed his family. Nor do they influence the family who just lost their home to foreclosure.

More than 15 months have passed since June 2009. Consumer confidence is still low, though slightly higher than it was. Home sales have dropped off a cliff compared to 2009 and that year was nothing to brag about. Unemployment is still high and we’re told it may go still higher.

Mortgage rates are near an all-time low but homes aren’t selling because even the employed folks worry about job security.

This recession has been one of the longest and most devastating I can recall. So many people are seriously distressed and demoralized. Most everyone has suffered to one degree or another.

I can only hope the average person will soon see evidence of the recession’s end. That will mean that they might actually get out an want to buy a house.

For more information, click here.

Bikes, Blues & BBQ Rally in Fayetteville

2010-09-17T15:26:00.002-05:00

It’s that time of year again. In just a little more than a week from now, Northwest Arkansas will once again welcome motorcycles from all over the country to the 11th Annual Bikes, Blues & BBQ Rally. The rally runs from Wednesday, September 29 through Saturday night, October 2, 2010.

Many people will rev up their bikes and arrive early. Who can blame them for wanting to be here as long as possible? The Ozarks are beautiful and the weather is near perfect in the fall. Warm days, cool evenings, and hints of fall color in the trees.

There will be thousands of bikes to see with events such as a Poker Run, a Parade of Power, customization competition and Battle of the Bikes competition.

And this year there is so much music and entertainment planned, it has to be spread over several venues. It all starts Wednesday, September 29, at 5:30 and keeps on going.

The BBQ is world class. The smoky aroma of barbequed chicken, ribs, pork, and beef brisket wafts around Fayetteville beginning Friday morning with public tasting events. The best of the best will be named Saturday afternoon with trophies and cash prizes awarded.

A 2010 Harley-Davidson Rocker C motorcycle will be raffled off.

More than 100 vendors will be on hand with everything from sunglasses to Harleys.

Don’t overlook (perhaps I say “look over”) the Ms. BBB competition.

As if all that isn’t enough, classic cars & trucks, street rods, tuners, and low riders will also be showing off.

Join the hundreds of thousands of people who come each year for the BBB Rally. Fayetteville is only six hours from Dallas and St. Louis, five hours from Memphis and Kansas City, and two hours from Tulsa, Oklahoma and Branson, Missouri.

The rally is good, clean fun. A lot of effort goes into keeping it family friendly and in line with community values.

BBB is self-funded and does not receive any government funding. All proceeds go to local charities. Since the rally started in 2000, more than a half-million dollars has been donated.

For more information, check out the BBBQ website.

Q2 Skyline Report a Mixed Bag—the Good, the Bad and the Ugly

2010-08-09T23:08:00.003-05:00

I try to attend as many events as possible, sponsored or promoted by the Center for Business and Economic Research of the Sam Walton School of Business at the University of Arkansas. The information given often gives validation to my own anecdotal observations about the economy and the housing market in NW Arkansas.

Last Friday Arvest Bank (for whom the report is prepared) sponsored a breakfast for Realtors® and affiliates in Washington County to outline the contents of the 2nd quarter Skyline Report prepared by the CBER. The Skyline Report looks at Residential, Commercial and Multi-Family real estate in Northwest Arkansas. However, Kathy Deck, Director of the Center, usually puts this information into a larger economic context in her presentations.

According to Deck, the key to the real estate market in NW Arkansas now is employment opportunities. Although our unemployment rate is significantly lower than the national rate, it is still higher than in past years. And without new job creation, new people will not be drawn to the area to buy or rent houses or apartments or to lease or purchase commercial space.

Another factor is that although most national economic measures show a recovery, consumer confidence is still very low. Thus despite the lowest interest rates in years and incentives such as the tax credit, most people are not feeling like the economy has improved and are acting accordingly—saving more and spending less, especially on credit. Plus nationally, large private sector employers are not hiring new people (which one would normally expect in an improved economy), despite increased profitability.

In NW Arkansas, there was a 0% net increase in non-farm employment growth between June of this year and June of 2009. There was increase in education and health services, government, professional and business services, but the other sectors lost jobs. These included the leisure and hospitality sectors, financial activities, trade and transportation, and construction.

In the commercial real estate sector, there were 70,805 square feet of positive absorption in Fayetteville in office and retail space, and there were 127,787 square feet of positive absorption in Springdale, primarily in warehouse space. Nevertheless, in all categories of space, there was more available than one year ago, a dangerous situation since the absorption was weak compared to the amount of space available. There were also anecdotal reports of so-called “aggressive tenant demands” and free rent, greater build-out allowances, delay of scheduled lease rate increases at renewal, and the removal of long-term termination clauses. Commercial vacancy rates in all of the NW Arkansas communities are higher than the national average of 8%.

In the multi-family sector, there are variations between Fayetteville and Springdale, due primarily to the fact that rental units associated with the University of Arkansas comprise a large part of the rental market. However, in Fayetteville the vacancy rate for 1 and 2-bedroom apartments is high, primarily since in the past few years there were a number of large complexes built to accommodate a proposed increase in the number of students at the U of A. Enrollment did increase, but the university also built some new dorms, so with the new apartment complexes this created a glut of rental housing in the university sector in Fayetteville.

The Q2 Skyline Report distinguishes between units newer than 2008 and those which are older. The vacancy rate for the 11,256 older units in Fayetteville was 15.4%, while that for 1885 units constructed in 2008 or later was 31.2%. New apartments have also been constructed in Springdale, where the vacancy rate for 5,732 older units was higher in Q2, 12.9%, while for 312 newer units built after 2008 was 6.7%. In NW Arkansas as a whole the vacancy rate for 25,476 units constructed before 2008 was 14.0% and for units built in 2008 or after was 34.8%. Many of the units constructed in 2008 are still vacant.

With regard to condominiums, Fayetteville has the largest quantity of these. In Q2, there were only 9 sold in Fayetteville with an average sales price of $120 per square foot. However, one did sell for over $300 per square foot, 2 more sold for over $100 per square foot, and the remaining 6 sold for less than $100 per square foot. From my own experience, the Fayetteville condos are of three different types at different price points—the pricey central Fayetteville units as compared to those elsewhere in the city and the least expensive condos for the university market.

Finally, in the residential sector building permits are back at 2008 levels, a reasonable balance between the net increase in population vs. the number of new houses being built to serve those families. Gone are the days of overbuilding with a huge inventory of new homes. Now the oversupply is in existing housing. Currently there are over 5000 homes listed in the NW Arkansas MLS. Prices are more stable and have declined less in Q2 than in past quarters: 2.9% in Washington County and 2.3% in Benton County.

Altogether, we have to wait and see what will happen with the housing market. Despite incentives in the government stimulus measures passed by Congress, it has not improved markedly, and in NW Arkansas, prices are still generally declining. It’s a great time to purchase a home since interest rates are at record lows, but with consumer confidence also low, the task will be to convince potential home buyers to take the plunge. Even though the first-time home buyer credit has ended, the low interest rates--coupled with the large selection of homes on the market at modest prices--make this an ideal time to buy a home.

Let’s Keep Walton Arts Center in Fayetteville

2010-08-07T22:23:00.003-05:00

There’s been talk of enlarging or building a new Walton Arts Center for more than two years. A feasibility study indicated Northwest Arkansas had grown to the point that it could support an arts center with 2,500 seats.

The existing WAC opened to great fanfare in 1992 in downtown Fayetteville and proved to be the impetus that helped revitalize the entire area. Since then WAC has hosted world famous artists, Broadway shows, ballets, and too many more to list in this space. However, it has only 1,200 seats and limited parking.

The city of Fayetteville owns WAC but it is widely known that the Walton Family Foundation has always been the lead donor.

So it was bad news when the Foundation recently said it would not continue to be the lead donor if a new WAC was not built in Bentonville. To most people, that seemed to mean it would be Bentonville or it just wouldn’t be.

But Walton Arts Center invited proposals for enlarging or building a new arts center and received 24 proposals from cities, chambers of commerce, the U of A, and individuals. The next step will be review of each proposal. The review committee hopes to narrow the proposals down to perhaps three by December 2010.

I know the review will be a daunting task. Personally I would love to see Walton Arts Center stay in Fayetteville and I believe Fayetteville’s proposal stands an excellent chance of approval. It is the only one of the proposals that offered potential funding of approximately $33 million.

That’s not to say Springdale and Bentonville did not make good proposals – they certainly did. I’m just prejudiced by my affinity for Fayetteville. Plus the Fayetteville proposal has the advantage of expanding the facility on the current site.

Wherever the new Walton Arts Center ultimately lands, it will be a major economic benefit to that area.

If you want to view the proposals, click here. For more information, click here.

For Sale: 3BR/2BA Single Family House in Fayetteville, AR, $120,000

2010-08-01T18:51:00.001-05:00

I just discovered a wonderful new tool to feature listings that I have. Here's a wonderful country retreat not far from town at a modest price.

For Sale: 3BR/2BA Single Family House in Fayetteville, AR, $120,000

The U of A Rocks--updates at the University of Arkansas

2010-07-18T20:23:00.005-05:00

I have written in the past about how the University of Arkansas contributes to the economy of Fayetteville, how Fayetteville has been rated as one of the best college towns in the country, and how Fayetteville has been at the top of many “best places” lists, often because of the university.

I ran across some additional facts about the University recently that I wanted to share.

First is a video about renovation plans for the university. I’m glad to see this happening because to offer a top quality education, students need good facilities—labs, classrooms, technology, etc.

Awhile back the U of A had made an offer to purchase Fayetteville HS. The idea was that Fayetteville schools would then use the money to help build a new, state-of-the-art high school. When the University withdrew their offer, I always wondered why, and this video explains it.

I’m sorry that Fayetteville HS will have to be remodeled and stay in the same place, but on the other hand, some facilities at the University need remodeling too. And that’s where the money that was originally going to be used to purchase Fayetteville HS is going.

Another indication of its commitment to excellence can be found in the music department which has set plans in motion to become an “all-Steinway” school, one of only 113 colleges and universities worldwide to attain this status. It's going to cost about $1.3 million, with funds being sought from private donors. So if you have some spare change ...

Second, the University of Arkansas permits people who are at least 60 years old to attend classes for free on a space available basis as part of the Senior Razorback program. They may be degree-seeking or non-degree-seeking. According to one of the employees of the admissions office, the oldest person she knew of who got her Bachelor’s degree through this program was 83 years old! I guess we’re never too old to learn.

And there are some fun things that can be done. An acquaintance of mine took Italian classes with his wife and then went to Italy on vacation to “practice.”

Finally, for those who are interested, the fall Razorback football schedule is out:

Razorback enthusiasm is palpable during the school year, and the team enjoys support from the entire community. Because there are no professional teams in Arkansas (except the NW Arkansas Naturals baseball team), Arkansas sports fans have tailgate parties and other events to promote and support the team.

The Razorbacks website also has all kinds of information about the teams, traditions, facilities, tickets, shopping for Razorback gear—you name it.

And if you really want to find out about the right way to do that hog call, listen in. Woo Pig Soooie!

PS. For those who might be interested actually getting a college education, the University's main website has information about the usual stuff: admissions, financial aid, courses, etc.

Rogers Picked as One of the Best Places to Live

2010-07-14T22:54:00.003-05:00

Little old Rogers (actually not so little any longer) has been picked by CNNMoney.com as #10 on their list of best small cities to live.

It’s ironic sometimes that as we watch things gradually change and grow, we sometimes do not stop long enough to look at the big picture. CNNMoney did that for us.

Rogers has lots to offer – excellent schools, lakes, golfing, upscale shopping and office facilities, low unemployment, good weather, and a population of 57,000 people from all over the country. Many of the residents were drawn by Rogers’ proximity to Wal-Mart’s home office in Bentonville. They liked what they saw and in many cases they encouraged friends and family to join them.

Rogers is indicative of life in the other cities of NW Arkansas. Sperling’s Best Places, U.S. News and World Report, and others have frequently cited the City of Fayetteville and the entire Fayetteville Metropolitan Statistical Area, which includes Rogers, as outstanding places to live. Those ratings considered affordability, education, clean air, employment, crime statistics, and just about everything else people take into consideration when deciding where to live.

Congratulations Rogers. Keep up the good work.

For more information:

CNN-Money Article

Wikipedia on Rogers, Arkansas

Property Tax Appeals – NW Arkansas

2010-06-16T10:46:00.002-05:00

Home prices in NW Arkansas are still falling, but the decline is less than in the recent past. In fact, we may be nearing the bottom of the market, but we won’t know that until after that moment has passed. Nevertheless, July is generally when property tax notices for the coming year go out, so residents may find that the value given their property does not conform to current market conditions.

In Washington and Benton County, Arkansas, assessments are normally done every three years. And appeals normally are accepted during the month of July and part of August. However, this year is an assessment year in Washington County, so notices will be sent out to all property owners during the first two weeks of July with the new assessed values. There will be instructions on the notices on how to appeal if you think your taxes are too high, compared to the market value. The latest date for appeal will be August 18.

In Benton County, next year is the assessment year. Tax notices this year will go out in early July and residents may call to schedule appointments to appeal their property tax bill from July 15 to the 3rd Monday in August. The Benton County website has a special page on the appeals process for that county.

One thing to keep in mind is that Washington County Assessor’s Office personnel are aware that we are in a declining real estate market and will be reassessing accordingly. Another is that in Arkansas on one’s principal residence, there is a $350 annual Homestead Credit. You only have to apply once for this and then it is subtracted every year as long as you live in the home. Also there are caps for senior citizens and tax breaks for disabled veterans.

Washington County also has established a website, explainmypropertytax.org, where county residents can obtain answers to their property tax questions. Once notices have gone out by mid-July, it will be possible for property owners to obtain information about their properties and taxes on that website. At this time, only general explanatory information about the tax and appeal process is available.

NW Arkansas is Getting Greener Every Day and Not Just Because It’s Spring

2010-05-27T09:59:00.002-05:00

Mother Nature endowed the Ozarks with mountains, millions of green trees, lakes and rivers everywhere. This beauty and diversity calls people outdoors to enjoy it. It is heartening to know governments, corporations and individuals are working to preserve it all for generations to come.

You can walk, hike, mountain bike, or jog at your own pace on hundreds of miles of trails throughout NW Arkansas, many of which interconnect. Springdale has been a bit slower than other cities in building new trails, but now has plans under consideration to repair an old dam and reopen an existing trail around a lake. Additionally they may convert an empty building in the downtown area into a staging area connecting trails.

Green is more than just a buzzword in these parts. As everyone knows, NW Arkansas is the home of Walmart, one of the leaders in the sustainability movement here and throughout the country. Walmart’s membership-club arm, Sam’s Club, is a great illustration of green possibilities. The Fayetteville store showcases numerous environmentally sustainable features such as wastewater recycling, motion-sensor lighting, harvesting rain water for landscape plants, and more than 200 sky lights.

In 2007, Walmart Foundation gave a $1.5 million grant to fund The Applied Sustainability Center, based at the University of Arkansas Sam M. Walton College of Business. According to the Center’s web site, they have developed a broad-based coalition of partners to advance efforts in building and supporting an economy built around people, planet and profit.

The Fayetteville Chamber of Commerce introduced a new program named the GreeNWAy Initiative to certify businesses that are going green. The GreeNWAy committee partnered with the City of Fayetteville, the University of Arkansas Students In Free Enterprise (SIFE), and the University of Arkansas Applied Sustainability Center to develop the certification process.

Some time back, many separate organizations joined together to form Green Valley Development in NW Arkansas. The idea is to bring together sustainability innovators, businesses, and technologies to coordinate resources and services for green companies to excel in the world market. Charter members include Walmart, several construction companies, banks, real estate companies, retailers, electric cooperatives and more.

What I’m trying to say is…

The continuing greening of NW Arkansas and adoption of sustainable policies is alive and well. It’s one of those things that make Fayetteville and NW Arkansas regular visitors to national “best places” (to live, retire, raise children, etc.) lists. And the green is one of those things that contribute to our high quality of life here.

Bentonville Schools Millage Increase Passes with Ease

2010-05-02T19:28:00.000-05:00

No one likes higher taxes, but sometimes they are necessary to provide for important things—things like a good education for our kids. And in the case of NW Arkansas, sometimes those higher taxes also contribute to the high quality of life for which our area keeps getting kudos and recommendations from a variety of sources nationwide.

On this occasion, I want to commend the voters in Bentonville School District for passing a 3.6 mil increase in property taxes. The increase will provide $70 million for a new K-6 elementary school and junior high school as well as funds for maintenance throughout the district. The voter turnout was high and the increase passed with approval of about 60% of voters.

It is not easy to have proposals to raise taxes pass voter muster in this difficult economy. Fayetteville School District saw the proof of that last year when their millage increase proposal was defeated.

But a look at the bigger picture confirms that the continued growth of our area (and our state) depends on having an educated base of employees. A good education and promotion of schools is essential to development of the area and contributes to quality of life of its citizens.

Good schools also add value to real estate. Two identical houses, one in a highly rated school district and the other in a lower rated district, will have different values due to those ratings.

Springdale School District is seriously considering asking voters to approve a 1.9 mil increase this year to build new schools and improve athletic facilities. If that proposal passes, the district will qualify for $15 million from the Arkansas Department of Education’s Facilities Partnership Program.

And last but not least, Fayetteville has totally revamped its priorities and hopes to get a millage increase passed this year. If so, the district could also receive funds from the state’s Facilities Partnership Program.

Bentonville voters have set the new standard. Their vote denotes a populace that recognizes the importance of education. They “get it.”

Is NW Arkansas unprepared for this or what? RRP—what it is and why you need to know.

2010-04-19T22:31:00.006-05:00

It seems like there are always some “hot-button” issues that realtors, landlords and others related to housing and real estate must deal with. Radon, asbestos, sexual offenders, and mold come to mind as issues from the recent past. And in some areas of Arkansas we can add meth houses.

Now lead-based paint is back on the front burner all over the country in the form of a new federal law.

Renovation, Repair, and Painting (RRP), is a new federally mandated program to deal with the issue of lead paint in homes, primarily those homes built prior to 1978. The program takes effect April 22, 2010 (that’s this Thursday for those who are paying attention).

It’s important that general contractors, real estate agents, plumbers, remodelers, handy-men, painters, property owners, carpenters, electricians, and all others who work in home repair or maintenance be aware of the rules and the requirements for compliance. Failure to do so can result in a fine of $37,500 per day, per violation! Heavy duty stuff.

The issue is “disturbing” lead-based paint which was commonly used in the past. Homes built after 1978 (when the federal law against the use of lead-based paint went into effect) do not have lead-based paint, and even many homes built after 1950 may not have it, since that’s when some paint makers voluntarily quit making it.

What constitutes disturbing lead-based paint? Sanding it or scraping it off, for example, on an interior wall area more than 6 feet square or an exterior area more than 20 feet square. Also such activities as replacing windows.

The main problem appears to be lead dust which can be ingested or airbourne. The issue is to limit the exposure of humans, especially children, to lead-based paint hazards. Thus buildings potentially inhabited by children in addition to homes and apartments, such as day care centers and schools, are covered by the new law.

The bottom line is that renovations of such buildings must be done by a certified renovator and supervised by someone who has taken an approved training course. There are certain techniques and practices for such renovations, which must be followed. Compliance in many cases will be difficult and in many cases, costly. In some cases, there may not be an issue if a certified inspector finds that there is no lead-based paint in the building or home.

However as of now, there are only 4 approved lead paint contractors on the Arkansas Department of Environmental Quality—ADEQ--list in the whole state of Arkansas. There are lots of contractors approved to deal with asbestos, but not lead-based paint. And none of the approved lead paint contractors is in NW Arkansas.

But there’s lots of information out there, and there are some opportunities. For contractors who remodel older homes, getting approved and licensed may mean a foot in the door and more work before competitora also get approved. For landlords with older buildings which are lead-free, this may become a marketing advantage.

There are also responsibilities for realtors and property management companies. Both would be advised to recommend to their repair personnel that they become certified.

This blog post doesn’t begin to address all of the issues, but does hope to draw the attention of those who may be in the process of purchasing an older home or about to do so to the new law and the issues surrounding it.

There are a number of websites for information--just click on the following links:

State of Arkansas ADEQ list of approved contractors

National Association of Realtors Video FAQs and other information

HUD lead paint disclosure requirements

EPA printable brochure about the new law

EPA requirements and information about the new law

NW Arkansas Naturals season starts and Crystal Bridges exhibition opens

2010-04-14T21:10:00.005-05:00

The opening game for the NW Arkansas Naturals was last week on April 8 at Arvest Ballpark in Springdale, and then there were games on subsequent nights as well. The first couple of games didn't go too well--in the one on Friday they lost to the San Antonio Missions by a score of 13-1 as almost 5000 fans watched, speechless.

But on Saturday they came back and beat the Missions by a score of 4-3.

Whether the Naturals win or lose is not the important thing. Having a baseball team like the Naturals here in NW Arkansas is wonderful for the region and a sign of positive growth. As our collection of small towns expands and more people move to the area, the idea of a variety of activities for residents to enjoy becomes more important. In the absence of a professional team for football, basketball and other sports, the U of A Razorbacks garner an almost-fanatical following. But the Naturals, now only 3 years old, are also making their place here.

Similarly in other disciplines. Soon the new Crystal Bridges art museum will be opening in Bentonville, but there have already been exhibitions at what is called Crystal Bridges at the Massey. The most recent was a juried exhibit of local photographers which opened April 2. With more than 100 entrants from 12-year-old amateurs to seasoned professionals, Crystal Bridges showed that it too will be a centerpiece of NW Arkansas culture. The photographers were asked to capture the changing landscape in Benton, Carroll, Madison and Washington counties.

Fayetteville and Northwest Arkansas have garnered recognition on many "best places" to live, retire, raise a family, start a business--you name it--and with good reason. Our quality of life is enhanced by places like Crystal Bridges and the Walton Arts Center, not to mention the U of A as artistic and intellectual venues, or even places like Georges on Dickson St. as popular music venues. And the NW Arkansas Naturals complement the Razorbacks as a sports destination for many Northwest Arkansas residents.

NW Arkansas IS a great place to live!

University of Arkansas Has Huge Impact on NW Arkansas

2010-04-10T17:31:00.005-05:00

The University of Arkansas’ flagship campus is located in Fayetteville, right where it’s been since it was founded in 1871. The university offers more than 200 graduate and post-graduate programs and its research, development, and outreach aids local public and private sectors.

None of that is news to most folks but I wonder how many of us ever stop to think about the overall economic impact the university has in NW Arkansas…

$725.4 million for the fiscal year ended June 30, 2009 was the amount concluded by an exhaustive study recently produced for the Office of the Chancellor. The study looked at direct expenditures by the university as well as spending and taxes paid by faculty, staff, students and visitors.

A few examples include payroll of $246 million, direct expenditures to NW Arkansas businesses by the university of $56.9 million, student expenditures of $173.7 plus visitors added an additional $127.5 million to the local economy.

Not only are those numbers huge, they must be extrapolated many times over to take trickle-down factors into consideration. Most of that payroll is spent locally. Homes and vehicles are purchased, state and local taxes paid, children of faculty and staff are enrolled in schools, contributions made to local churches and charities, restaurants, medical professionals, gas stations, clothing stores – the list is endless.

If University of Arkansas were not here, this area would have an entirely different landscape.

Go Hogs!

Read the entire 106-page report:

http://www.uark.edu/rd_vcad/economicImpact/rd_vcad/documents/The_Economic_Impact_of_the_University_of_Arkansas_Final_Version_for_Print.pdf

Crystal Ball Look into the NW Arkansas Housing Market

2010-03-21T20:28:00.003-06:00

Predicting what's going to happen in the NW Arkansas housing market is somewhat difficult. People always ask me if the market has hit bottom yet, but I can't really tell them, since generally speaking, prices are still declining.

For those who want to get the "best" deal, there are several factors consider:

1. If you are waiting for the market to hit bottom in NW Arkansas, I think it's close, but not necessarily there yet. It also varies by town.

2. Interest rates are still very low, but predictions are that they will rise this year. What this means is that if a house is cheaper a few months from now, but the interest rates are higher, the monthly payment may still be the same. If home prices begin to rise, and interest rates rise as well, buyers may not be able to purchase as nice a home for the amount they have qualified for. Thus, buyers who are serious about purchasing a home may want to do so sooner rather than later if they find a home they really like.

3. The first time home buyers tax credit of up to $8000 was extended at the end of last year, but to get it, buyers must have an accepted offer by April 30 and close by June 30. Buyers who already have a home and want to purchase another as their principal residence may get a tax credit of up to $6500. They must have lived in their current home for at least 5 of the past 8 years. Check the IRS website to get specific information about these programs.

4. Real estate purchases are normally considered to be long-term investments. During the recent housing bubble, investors and other speculators treated them as short-term investments because they could--prices were appreciating by double digit percentages. Now that is not the case, market adjustments have occurred or are occuring, and buyers need to plan to hold on to their real estate purchases for a longer time before selling.

Which brings me to an interesting article from CNN Money about
homes prices in NW Arkansas and whether it's a good time to purchase a home here.

According to their data, the market in NW Arkansas will hit bottom in the 3rd quarter of 2011 (i.e. next year). Also that there will be a 3.1% decline in prices from the first quarter of this year to the first quarter of 2011. A couple of observations about this data:

1. It refers to all of NW Arkansas, or the Fayetteville-Springdale-Rogers Metropolitan Statistical Area, which also includes part of SW Missouri and Madison County, in addition to Washington and Benton Counties.

2. I'm not sure where Moody's gets their data from, but according to sales in the NW Arkansas MLS (Multiple Listing Service), the peak was different in Washington and Benton Counties, and also differed by town. According to my data from the NW Arkansas MLS, Washington County median home prices peaked in the 3rd-4th quarter of 2006 whereas Benton County's peaked in early 2007. I suppose that if they got their data from county records and/or other sources which also includes homes not listed by a realtor, the aggregate could have been the third quarter of 2006.

Who knows when the bottom will occur? In any case, we won't know it happened until after the fact and we can look at the data. And then it will be too late--prices will already have begun to rise, and who knows about interest rates?

For more current data and an ongoing look at the housing market in NW Arkansas and nationally check out Judy Luna's daily "real estate tidbits" on her Facebook business page.

NW Arkansas Housing Market--4th Quarter Skyline Report

2010-03-14T10:18:00.002-06:00

In the last few weeks the 4th quarter Skyline report was released by the Center for Business and Economic Research at the U of A. At the quarterly Washington County breakfast sponsored by Arvest (also sponsor of the report), Kathy Deck, director of the Center and chief researcher for the Skyline report, talked about the economy as well as the housing market.

The economy—particularly employment—strongly influences the housing market for Northwest Arkansas. If there are no jobs then people will not move to the area. If we don’t have more people moving to the area, there will be no need to construct new homes, establish new businesses (to fill up the vacant commercial and office space we have), improve rental vacancy rates, etc. And if people don’t need homes, the real estate market suffers. It’s that simple.

Nationally it seems that the economy is picking up slightly, and NW Arkansas figures are somewhat better than the national ones. The GDP is up—which means that production is up. Inventories have been depleted so factories are producing more. Some folks who were laid off have been called back to work, a good sign. On the other hand, employers don’t feel confident enough to hire a lot of new people either. Thus in NW Arkansas employment figures are now at about 2006 levels, while nationally they’re at about 2000 levels.

Bottom line is that although there is some positive growth again, it will not be the “go-go” growth of the bubble years. What is needed is good, sustainable growth. According to Deck, “flat is the new up,” when compared to declines during the recent recession.

In the realm of commercial space in Q4 in NW Arkansas, there was near record available space in all sectors. This is one area where NW Arkansas figures are worse than the national figures. For example, office and retail space in all of the NW Arkansas communities is a lot above the national average, although it varies by town. Thus leasing costs have gone down and there are anecdotal reports of greater demands by tenants—leasing incentives such as greater build-out allowances, free rent, and delays in scheduled lease rate increases, for example.

For multifamily, vacancy rates are also above national levels. The national vacancy rate is 8.5% for 1-2 bedroom apartments. NW Arkansas rates approached 15% in Q4, primarily because of a lot of new apartments which were constructed, especially in Fayetteville. Expected population growth didn’t materialize, so the number of vacant units remains high. Springdale is lower, but still over 10%.

In the single family arena, building permits are now very low but the market can sustain this level. The value of permits issued has risen, since many of the residential building permits are for custom homes in Fayetteville and Springdale. In the smaller towns of Washington County most of the new permits issued have been for small, affordable homes.

The inventory is down and the problem of absorption is no longer due to overbuilding, but rather a slow down of demand (i.e. fewer people are to the area). According to Deck, the market can support a low level of construction, in fact we need to have some construction occur. As available units are absorbed, there needs to be replacement or prices will rise significantly as demand outpaces supply.

Prices on single family homes have continued to decline, so that values are now at approximately 2004 levels. In Benton County, the decline was 7.7% compared to the same period last year, and in Washington County there was nearly a 14% decline. There may be continued adjustment due to downward pressure caused by foreclosures and sales of distressed properties as well as by the decreased absorption rate.

Ultimately, low interest rates, lower prices, and the first time home buyer tax credit make this a wonderful time to purchase a home in NW Arkansas. Not a great time for selling, however. The thing buyers need to remember is that purchasing a home is normally considered to be a long-term investment, so that even if prices continue to decline, they will eventually begin to appreciate again.

Predictions are that interest rates will begin to rise, and (with low rates of construction of new homes) absorption of current inventory will also cause prices to begin to rise again.

For more information about real estate in NW Arkansas visit Judy Luna’s main website:
http://www.JudyLuna.com

To search for homes or other property in the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com

For more information about the Q4 Skyline report:
http://www.arkansasbusiness.com/article.aspx?aID=120778.54928.132923
http://www.arkansasbusiness.com/article.aspx?aID=120604.54928.132745

2010 Census Coming Soon to Your Mailbox

2010-03-08T21:40:00.001-06:00

National Census Day is April 1, 2010. Use that date as your reference point for completing the census forms which will be arriving in mailboxes all over the country in March.

The Census Bureau says this census will be one of the shortest in history - just ten simple questions. Most Americans grew up knowing the national census takes places every ten years. But for newcomers, the census can cause questions, uncertainty, and apprehension.

There is nothing to fear about the census. There are no questions regarding whether you are living in this country legally or illegally, Social Security numbers are not collected, and your privacy is secure.

The data are grouped together and used in a variety of important ways (for example):

--Congressional districts will be redrawn and reapportioned.

--$400 billion is distributed annually to state and local governments for infrastructure and community services (think bridges, hospitals, senior citizen centers, and job training, for example).

--Pools of skilled workers can be located.

Completing the census is mandated by the U.S. Constitution and it makes good sense for the welfare of our community.

All you have to do is take about ten minutes to complete ten questions and mail it back in its postage-paid envelope. If you don’t do that promptly, a census worker will have to drive to your home, knock on your door and ask the questions - and that costs considerably more than the postage-paid envelope. So give yourself a break and save the government some money at the same time.

For more information:
http://2010.census.gov/2010census/why/community-benefits.php

To see the actual questions:

http://2010.census.gov/2010census/how/interactive-form.php

And to get a part time job as a census taker:

http://ar.thebeehive.org/jobs/job-articles/2010-census-jobs

Real Estate News in NW Arkansas

2010-02-09T11:49:00.002-06:00

Now that I’m reading the local newspaper on line again, I can use it to help my readers find information on news and issues of importance for the area.

With regard to real estate there are a few things.

First, an article Saturday in the new NW Arkansas paper provided good information about the housing market in NW Arkansas in relation to property taxes collected and delinquent taxes. It seems that the sum of delinquent taxes declined last year, but that doesn’t necessarily mean that the housing market is improving.

Second, last Friday was the annual Economic Forecast Luncheon at the Hammons Center in Rogers, sponsored by the Center for Business and Economic Research at the U of A Sam Walton School of Business.

We learned about recent occurrences in the world, national and local economy and postulations about what’s coming in the near future. Actually the outlook was more positive than I would have imagined and I hope the crystal balls of the speakers are not cracked or broken. We need some positive economic news to get buyers out into the streets again, purchasing homes.

The economic stimulus measures of the federal government have helped, particularly the first time home buyer tax credit, which was expanded and extended into this year. Now if only the weather would improve… ;-)

The other event which I just found out about at the Metro Board of Realtor Luncheon on Thursday was the imminent merger between two of the large local real estate companies of NW Arkansas, Harris McHaney and Coldwell Banker Faucette Realty. This will make the largest real estate company in the NW Arkansas area.

This comes on the heels of the merger under the Weichert umbrella of the Griffin Company and Weichert Clark Long and Associates in December just before Christmas.

The real estate business in NW Arkansas is a changin’. Small boutique firms (and even larger firms like Griffin and Harris McHaney) are having a tougher time. The housing market has suffered with the recession, and may continue to do so. The recent announcement by Walmart of laying off 300 people here in NW Arkansas may have a chilling effect on the economy and housing market just as Walmart’s layoff of 800 people last year did.

Foreclosures are high and there are a lot of short sales. With some of our major corporate employers also cutting back, growth in the area is bound to be curtailed, compared to the peak a few years ago. This (in turn) will lead to fewer new homes being built and sold at a time when we are still trying to absorb the inflated inventory of homes from our mini housing bubble.

I certainly don’t have a crystal ball, but I’m still optimistic.

For more info on the housing market and property taxes:
http://www.nwaonline.com/news/2010/feb/06/unpaid-real-estate-taxes-dip-20100206/

For more info on the Economic Forecast Luncheon and the economy:
http://www.nwaonline.com/news/2010/feb/06/green-jobs-sustainability-could-boost-area-economy/
http://tinyurl.com/ygyzk98
http://tinyurl.com/yzqehch

For more info on the merger of Coldwell Banker and Harris McHaney:
http://www.arkansasbusiness.com/article.aspx?aID=120146.54928.132287

For more info about Fayetteville and NW Arkansas and purchasing or selling a home there:
http://www.JudyLuna.com

And for searching the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com

Newsworthy in NW Arkansas

2010-02-06T23:11:00.004-06:00

Well, I bit the bullet and signed up to pay $5.95 per month to read the local newspaper on line. I don’t get the paper version any more and haven’t for a long time. But a few months ago, the two NW Arkansas newspapers merged and now one has to pay money to read local news on line.

As anyone who has been reading my blog for awhile knows, I have used the local newspapers for “more info” on topics that I blog about. I’m sorry you now have to pay too, but that’s the way it is. I resisted for a long time because of principle. If I can read the major newspapers in the country (Washington Post and NY Times) for free, I didn’t want to have to pay for a mere local newspaper.

Neither of the old papers were that great, but they did tell us what was happening in our neighborhoods, local towns and cities. And the new paper does that too. And we need that information to be informed citizens.

The main turning point for me was that in order to read certain articles to find out news important to my business, I have to pay. Another was a comment by Kathy Deck at the Economic Forecast Luncheon on Friday on the importance of supporting our news organizations financially.

And that got me thinking about the importance of the media in a democracy like ours. Without a strong independent media, we have an uninformed electorate. But for democracy to flourish, we need a strong media which can elucidate the issues and (in an unbiased manner) provide information about our candidates, issues of importance to our daily lives, and the functioning of our political system.

Our local newspapers, like newspapers across the country, have been suffering of late because of increased use of the internet to obtain information. Television competes as well. Major newspapers such as those mentioned earlier have deeper pockets and can find alternative ways to survive without charging website visitors to read their stories. Unfortunately our local papers need additional financial help.

Thus I registered and provided my credit card number to be able to read the local newspaper. It’s a sorry sign of the times, but there it is.

The new NW Arkansas newspaper website is http://www.nwaonline.com . The old website for Judy Luna's information about real estate in NW Arkansas is http://www.judyluna.com/.

Fayetteville HS options

2010-01-26T20:00:00.003-06:00

I have been somewhat remiss on reporting on some of the issues that I used to write about. One reason is that the two NW Arkansas newspapers merged and now one must pay to read the newspaper on line. I personally think this is a bad idea and even if I would pay to read the newspaper, I don't want readers of my blog to have to pay to get more information than what I am providing in my blog.

Thus some local issues have fallen by the wayside in my blog and the Fayetteville HS is one of them. However, the Fayetteville Flyer is a great source as well and has a good article on what's happening.

It seems that money is limited for the Fayetteville HS renovation so there are 2 options as to what gets done first. Click on the link below for more information.

http://bit.ly/91jOvy

Does Your Mortgage Guy (or Lady) Know What He’s Doing?

2010-01-22T20:50:00.002-06:00

I was reading the NY Times recently and came across an interesting article. It has to do with the professionalism and knowledge of mortgage loan originators. As you might imagine, this affects my business so it piqued my attention. The ability of a loan originator to get transactions closed cuts down on headaches and frustration for buyers--and their realtors.

It seems that something called the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) was passed by Congress in July 2008 and required states to pass legislation requiring the licensure of mortgage loan originators. The SAFE Act mandated that state agencies participate in the Nationwide Mortgage Licensing System and Registry (NMLS) and that mortgage brokers meet national standards in order to obtain a license.

Testing began in summer 2009. Now that results are starting to trickle in it appears a substantial of mortgage brokers have a lot more work to do to meet standards. Some 10,000 people have taken the tests and more than 30% failed the federal portion. The number of failures on the applicable state portions was slightly less – 27%. All in all, that’s a pretty sad state of affairs.

I would like to think Arkansas’ brokers are a cut above those dismal test results. At least our area did not suffer the horrendous housing collapse that occurred in many states where many unqualified borrowers were given loans they had little ability to repay.

Nineteen states have offered the tests to date, including Arkansas where tests began November 1, 2009. So far I haven’t been able to find results specific to Arkansas.

When a buyer asks me for recommendations about the best place to obtain a mortgage, I usually refer them to few trusted people at local companies who have done a good job in the past for my clients. I don’t necessarily trust some of the on-line lenders that advertise frequently on TV. Sometimes you get a good loan originator, sometimes not.

The other thing to look for is whether you are dealing with a mortgage broker or a bank. A bank will process the loan according to its guidelines. Sometimes they keep the loan and sometimes they will sell it to another lending institution. A mortgage broker has a lot of “investors” (usually banks) to whom they will sell the loan. Some have better relationships with their investors than others and are better able to exert pressure to get problems solved and the transaction closed. Banks who regularly sell their loans also need to have such relationships, but even the experience (or lack thereof) of loan originators within their own institutions can sometimes make or break a transaction.

A proven track record speaks volumes. A good, experienced, and knowledgeable loan originator is important, and the same is true for the realtor you select.

For more information:

http://mortgage.nationwidelicensingsystem.org/safe/Pages/default.aspx

http://www.nrmlaonline.org/App_Assets/public/ef8c2414-00da-4cff-8c69-e45d2ca45a82/SAFE%20Act%20Update.pdf

http://www.nytimes.com/2009/12/27/realestate/27mort.html?

http://www.securities.arkansas.gov/page/338/mortgage-loan

Bitter Cold Strikes NW Arkansas

2010-01-08T18:44:00.003-06:00

I’m writing this Friday at lunchtime. The outside temperature is 7 degrees F. The wind chill is approaching 15 degrees below zero. There are light snowflakes hitting the ground and it is all highly unusual for NW Arkansas.

Our region had snow Sunday followed by cold, which created hazardous driving conditions. Then it got colder. In fact, it’s been brutally cold since late Wednesday night and the forecast calls for more of the same. On Sunday, if all goes as expected, the daytime temperature should warm up to 34 degrees F. and then get a little warmer each day next week.

I realize NW Arkansas is not alone in the cold. Much of the northern and eastern parts of the country are at least as cold and some are even colder. Right now northern Minnesota where I grew up is slightly warmer than Fayetteville, Arkansas. (The kind of cold that northern Minnesota experiences every winter is a major reason why I no longer live there.)

It has been more than 20 years since NW Arkansas had a deep freeze like this one (and I hope it will be another 20 years before it happens again.)

Unusual cold is more dangerous in places where homes and buildings were not designed to handle it. Buildings in places like Minneapolis, Detroit, New York state, and northern New England have more insulation and larger furnaces for heat. Northern states also have more equipment to remove snow and sand roads. Residents in those climates normally have more warm clothes.

This time of year NW Arkansas would expect temps in the 30s and 40s. A cold night might be 20 degrees.

The result of the Arctic air is many faceted. It’s been too dangerous for school buses to navigate icy rural roads, thus schools are closed. In fact, many schools have not reopened since the holiday break. People are cold, pipes are freezing, and cars won’t start. Some older homes don’t even have central heating. It takes a lot of wood to try to heat a home that isn’t properly insulated.

There is good news, however. Several agencies in NW Arkansas have opened warming centers where people can go to avoid frostbite and worse. Many are offering hot food and some have cots for sleeping. At least one agency I heard of is allowing people to bring their pets – because many folks simply will not leave their pet behind to freeze.

So stay inside if at all possible – this too shall pass. I can't wait...

Happy New Year

2009-12-30T15:08:00.003-06:00

It's a good thing 2009 is almost over. Not a good year for a lot of people. Hopefully 2010 will bring recovery to the recession and more prosperity to all. And for all sellers out there, I hope your house sells wherever you are, so you can move to NW Arkansas and purchase a home here. ;-) Happy New Year.

Consumer Confidence Up in NW Arkansas? I hope so.

2009-12-30T15:03:00.002-06:00

When I was out shopping before Christmas I encountered horrendous traffic near the malls and lots of people in the stores. My impression was that “consumer confidence” in NW Arkansas was back in force.

Now that some of the business reports are coming in, the numbers show my impression was correct. Basically my observations of are “anecdotal” evidence but I also pull data from local sources and the MLS. So when the economists trot out the statistics I look for those to validate my gut feelings and in this case they did just that.

As I have mentioned in the past, Americans are saving more than they did before the recession and that’s a good thing. But for a healthy economy, people need to spend money. Individuals don’t often realize the impact their personal spending habits have on the economy as a whole. But the truth is that consumer spending is a huge driving force on the economy and people need to spend money if the recovery is to gain momentum.

I’m happy that things are picking up at the retail level. It’s a positive sign of economic recovery. My hope is that the housing market responds in kind.

For more information:

http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119367.54928.131493&page=2

http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119366.54928.131492

Some Positive News for the NW Arkansas Housing Market

2009-12-15T21:22:00.003-06:00

There are a couple of events that I try to attend on a regular basis, because I get validation for my “feelings” about the market gleaned from my own business and from anecdotal evidence from other realtors. It’s “my homework” so I can stay apprised of trends in the market (in addition to the data I pull from the NW Arkansas MLS) and the effects of the economy on our area.

One event is the quarterly Skyline breakfast that Arvest bank sponsors for realtors, developers, builders and others in the housing business in NW Arkansas. Kathy Deck from the Center for Business and Economic Research at the U of A provides information about new home construction, absorption, and the economy of NW Arkansas. Mostly the report for Arvest deals with residential real estate, but normally there are also segments on multifamily housing and commercial real estate as well.

A second similar event is the quarterly Streetsmart breakfast coffee hour sponsored by that organization. Streetsmart is a commercial venture which provides similar data for profit to developers, builders and other real estate investors. They tend to focus more on commercial real estate, but they gather all kinds of data on residential and multifamily as well.

The third is the quarterly economic breakfast sponsored by the Center for Business and Economic Research at the U of A. This provides more general information about the economy with only limited information about the housing market itself. But what’s happening in the local (and national) economy influences housing, so it also becomes important for my personal quest for information.

The 3rd quarter Skyline breakfast was held about 3 weeks ago. Kathy Deck, the director of Center for Business and Economic Research at the University of Arkansas, was cautiously optimistic about the residential housing market, but we’re not out of the woods yet because of national economic trends, which also influence us here.

Third quarter 2009 numbers show signs that demand is beginning to lower the number of new homes available (decreased inventory), but the absorption rate has slowed, not because of over-supply such as occurred at the peak of our housing bubble here a few years ago, but rather because there are fewer people moving into the area.

Kathy always starts her talks with unemployment figures, because job growth is what fuels the demand for housing. As long as there is positive job growth in NW Arkansas people will be drawn here and thus purchase homes. However, the number of people moving here is about 1/3 of what it was at the peak several years ago. Nationally there has been a loss of 8 million jobs in every sector except health services and education. The latter are strong sectors here and the only sectors which have shown positive job creation. There have been some job losses here but not on the scale of the nation as a whole.

Nevertheless, sales of new-but-never-occupied homes increased 30% in the third quarter over the second quarter of 2009. Correspondingly, the available inventory of complete but unoccupied homes fell by 27%. But this is partially because building permits are way down.
The average price of homes continued to decline in the third quarter. The average price per square foot of homes sold in Benton County was $80.26 in the third quarter compared to $97.16 in the third quarter of 2006. In Washington County, the average price fell from $103.63 to $86.28 per square foot.

Other factors in the economy nationally have also affected the housing market in NW Arkansas. These include consumer sentiment--people are saving their money instead of spending it in part because they are being forced to (credit is less available now than it was in the past). Loss of employment have also made people cautious, so they are not buying things. Normally this is a good thing, but if everyone does it (as they are now) then the economy suffers. Retailers are putting fewer products on the shelves, “rationalizing SKUs”, and home builders are not building a lot of new spec homes.

The positive numbers regarding home sales have been spurred by income tax credits of up to $8,000 for first-time homebuyers. These credits were due to expire November 30, 2009 but have now been extended into 2010. And now a new credit is available to current homeowners who wish to buy another home. (For more information on either of these credits, read my blog below, “Homebuyer Tax Credit Extended! Hurray!” posted November 15, 2009.

My suspicion that the multifamily and commercial sectors are suffering was borne out at the Streetsmart Coffee Hour held last week. Tom Reed of Streetsmart spoke and presented some additional economic data which basically supported what Kathy Deck had to say. Hotel/motel tax receipts are down, and those for restaurants are the same as for last year in the 3rd quarter. Job creation has declined—non-farm jobs in NW Arkansas are down by 1.4% or about 3000 jobs. This is better than the state and national figures (2.4% state decline in non-farm jobs and 4% national decline) but compared to past years when we had a job growth surplus, the decline is not good news.

For residential housing, building permits are down—there’s been a 23% decline when comparing Q1-3 of 2009 to Q1-3 of 2008. Also home prices have declined by 8.1% when Q3 of this year is compared to Q3 of last year in Benton County and by 6% in Washington County. However, the amount of decline is less than what it has been in previous quarters, leading one to believe that perhaps prices are leveling off. But the number of home sales is up.

An interesting fact mentioned by Reed was that there were a substantial number of home sales recorded in the county records which were not in the Multiple Listing Service. When asked to account for the large number of homes not listed or sold by a realtor, Reed speculated that these were sales by banks. Essentially the number of new home sales in the first three quarters of 2009 (as recorded in the MLS) was doubled when non-MLS sales recorded in the country records were counted: 287 new home sales reported by the MLS of 526 new home sales in active subdivisions recorded in the county records in Benton County and 170 new home sales reported by the MLS of 340 new home sales in active subdivisions recorded in the county records in Washington County.

According to Reed, the bottom line for residential home sales in the 3rd quarter showed new construction activity slow but building permit totals increased during the year. There will need to be some housing starts or the time will come when there are no new homes available. There was a continued reduction in inventory of complete but not occupied dwellings—the number of these decreased by 23.5% from the 2nd quarter. Interest rates remain low and the home buyer credit appears to be having an effect in increased buyer activity. Lot sales were up significantly in Q3.

For multifamily the situation is that there is an oversupply—in Fayetteville the vacancy rate is almost 18% due to a number of new apartment complexes which have come on line recently. Siloam Springs has a 16% vacancy rate, Springdale 14%, Rogers over 12% and Bentonville approximately 11%. Basically it is too high in all markets in NW Arkansas. Lower end homes for sale are competing with multifamily rentals. This could be an effect of the tax credit for first time buyers.

There is also an oversupply of commercial space. Nationally the vacancy rate for class A and B office space is about 15-16%. In NW Arkansas the vacancy rate is about 19-22% (varies by town). According to Reed, if office space to be absorbed, jobs need to be created. Office space is directly tied to job creation. The situation is similar for retail space. The vacancy rate for class A and B retail space nationally is about 11.5-12%. In NW Arkansas it is about 15-16%. And occupancy rates for hotels here is declining due to many new hotels constructed in the past few years.

Of particular concern in the commercial arena, according to Reed, is the amount of maturing commercial debt. Nationally, of $3.5 trillion of outstanding debt in mid-2009, $1.56 trillion of that debt will be coming due within the next 36 months, when loans will be re-set/refinanced. In past recessions, small businesses have been responsible for growth with a loss of only about 9% of jobs. In this recession there has been a 45% job loss in small businesses. Because of the linkage of small business with local community banks, small businesses will be in trouble if community banks cannot give them loans. Ultimately job creation must improve for absorption of vacant commercial space.

Bottom line from these two reports is that the increase I have noticed in residential activity is not a figment of my imagination. I would suspect that the 4th quarter numbers will show some more positive trends. As I mentioned at the beginning, we’re not out of the recession yet but the picture is not all doom and gloom.

For more information:

http://www.arkansasbusiness.com/article.aspx?zone=AB_ENEWS_EarlyLateBreaking&lID=&sID=&ms=&cID=PM&aID=118766.54928.130892

http://www.nwanews.com/news/2009/nov/24/little-progress-noted-housing-20091124/

Bikes, Blues and Barbecue Announces Charitable Contributions

2009-11-22T19:08:00.001-06:00

$45,000 – that’s the amount Bikes, Blues and Barbecue Motorcycle Rally was able to donate to local charities last week. It comes at a time when many worthwhile causes are in great need due to the economic downturn.

The recipients include such well-known names as Big Brothers & Big Sisters, Habitat for Humanity, Humane Society of the Ozarks, Muscular Dystrophy, and the Jones Center for Families. Several more non-profit groups perhaps not as widely known but equally worthwhile include Peace at Home Shelter, Fayetteville Public Education Foundation, Horses for Healing, and CASA of Northwest Arkansas.

Bikes, Blues & Barbecue was not able to make any donations in 2008 because of expenses incurred to enlarge venues and other one-time expenses so it’s wonderful to see the rally back in the black.

Since 2000, BBB has given more than $500,000 to local charities.

Kudos for all you do!

For more information:

http://www.bikesbluesandbbq.org/charities.htm

Homebuyer Tax Credit Extended! Hurray!

2009-11-15T18:35:00.005-06:00

Check out this video to get all of the details on the extension of the first time home buyers tax credit.

$8000 Home Buyer Tax Credit

Last Friday, President Obama signed the law to make the extension official, after the Senate gave its approval and the House of Representatives voted overwhelmingly to pass the legislation.

The $8,000 first-time homebuyer tax credit was supposed to expire Nov. 30, 2009, but now it will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.

But not only a time-limit extension was part of the new bill. The tax credit was also extended to include home buyers who already own a home. They can apply for a $6,500 tax credit for the purchase of another home. To be eligible, the existing homeowners must have lived in their current residence for five of the prior eight years and the eligible homes must be worth $800,000 or less. Both credits are available only for primary residences, not second homes or investment properties. The legislation took effect November 7, 2009 and is not retroactive.

The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two years. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.

News about News in Northwest Arkansas

2009-10-29T19:57:00.001-06:00

I suppose it was inevitable, but the merger of the two major newspapers in Northwest Arkansas has saddened me. Readers and advertisers alike will no longer have a choice of newspapers. Competition is virtually good – keeps everyone on their toes and helps keep prices down.

The merger includes the Northwest Arkansas Times in Fayetteville, Benton County Daily Record in Bentonville, Morning News in Springdale plus several weekly or twice-weekly newspapers, a Spanish language weekly and a monthly magazine devoted to Arkansas Razorbacks athletics.

Another sad result of the merger is the loss of jobs. More than 500 people are employed either full- or part-time by both newspapers. At this point, no one is sure how many will still have a job when the dust settles.

I’m surprised this is all taking taking place so rapidly – Sunday, November 1. The proposed merger was announced less than two months ago (September 3, 2009). Seems like a huge effort and yet the pieces fell into place as soon as the U.S. Department of Justice concluded the proposed merger would not create any antitrust violations. The Justice Dept. used to feel differently about these things but faced with the reality that newspapers have suffered huge losses across the country, the merger was quickly approved.

All versions of the newspaper will include the Arkansas Democrat-Gazette but depending on locality, readers will also receive either the Northwest Arkansas Times, Benton County Daily Record, or the Morning News. It’s possible the Morning News will publish slightly different versions for Rogers and Springdale.

To access the versions not included in a particular area, readers will either have to drive to a newstand in that area or go online. Newspaper subscribers are permitted free access to websites but others must pay a monthly fee for the privilege.

I must say I’m a little put out about that. While I can sympathize with their plight (i.e., subscriptions and advertising way down), if two of the premier newspapers in the country (New York Times and Washington Post), among others, are still free, I sort of resent having to pay to read the local newspaper.

On the other hand, a lot of realtors no longer advertise in the newspaper (or magazines either), contributing to the problem. Statistics show that about 90% of home buyers now find their home on line. With home sales down and limited advertising dollars, the real estate industry is changing. The same is probably true for other industries. And unfortunately our local papers are paying the price.

C'est la vie.

For more information:

http://arkansasnews.com/2009/09/03/northwest-arkansas-newspapers-seek-joint-venture/

http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118172.54928.130298&view=all

http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118171.54928.130297

Good Economic News in NW Arkansas

2009-10-11T21:53:00.003-05:00

Some thoughts from the Arkansas Economic Issues Breakfast meeting I attended a few weeks ago on September 30…

First, at little background: This was the first in a semi-annual series bringing together Arkansas’s business, community, education and government leaders via video conferencing. There were people gathered in 7 locations, and speakers at three of them. In Fayetteville, the gathering was held at the Sam Walton School of Business at the U of A. The series is sponsored by Arkansas Business to promote economic development by disseminating high-quality information and analyses.

Governor Mike Beebe in Little Rock kicked off the event with good news: "We've added 22,000 new manufacturing jobs in the last 20 months.” Beebe also said we are on the brink of several non-U.S. companies coming to Arkansas.

The general consensus is that Arkansas has endured the recession considerably better than many states. Unemployment rates here never came close to double digits and the housing market did not suffer the huge declines seen elsewhere.

Kathy Deck, director of the University of Arkansas (Fayetteville) Center for Business and Economic Research, stated the recession is technically over, while at the same time acknowledging that the average consumer may not yet be ready to agree. People are still worried about the future in general and continue to be concerned about possibility of unemployment and the decline in value of homes and 401(k) retirement accounts.

On a scale of 1 to 5, with 1 being much better and 5 being much worse, the Fayetteville area's economic condition was ranked 2, which is better than all other areas in the state.

To summarize, NW Arkansas appears to have come through the recession better than the rest of the state and Arkansas, better than many other states.

However, there is always room for improvement. Highway construction, transportation, education, improving job skills, and business investment and expansion are at the top of everyone’s list. Other concerns include the overbuilt real estate market and health care.

For more information:

http://www.arkansasbusiness.com/printable.asp?aid=117380

Deadline to Pay Property Taxes is October 13, 2009

2009-10-06T21:03:00.001-05:00

The normal deadline for paying property taxes and personal property taxes is October 10th each year but because the 10th is a Saturday, 11th a Sunday, and Monday the 12th is a Holiday, there is a small reprieve.

Many homeowners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. The bank holds the tax portion of the payment and then pays the property tax when due. If this is your situation, you can relax since your property taxes have already been paid.

But if you don’t have a mortgage or don’t pay taxes as part of your mortgage, be aware October 13th is rapidly approaching.

When the bills were sent out last spring, they included an option to pay taxes in three payments. If you took advantage of that, don’t forget the third and final payment.

Personal property taxes on cars, trucks, boats, etc., are also due October 13th.

Late payments incur an automatic 10% penalty plus interest.

You can pay your taxes in person but in Washington County this year that is rather inconvenient due to very limited parking. The parking garage is being demolished and a new one will be operational next year. In addition to paying in person or mailing a check, both Benton and Washington Counties offer an ePayment Service. You can pay by Visa, MasterCard, Discover or American Express credit card. Washington County also accepts payment via eCheck - a method of debiting the funds electronically from your checking account just as though you had written a check.

However, be advised that if you use any of the methods just mentioned, you will incur a processing fee. The county websites state, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”

The web addresses for paying online are:

https://www.ark.org/washingtoncounty/index.php
https://www.ark.org/bentoncounty/index.php

Bikes, Blues and Barbeque in Fayetteville, AR

2009-10-01T14:19:00.002-05:00

What a party! The 10th annual Bikes, Blues and Barbeque Rally was held in Fayetteville September 23-26, 2009. If you weren’t there, you should have been. Hundreds of thousands of people made their way to the festivities for music, food, seeing and being seen, parade of power, poker run, and more.

There were all kinds of bike competitions: plenty of conversions, plenty of chrome, and all shining in the sunshine.

I couldn’t count all the bands and musicians that were on hand to provide music and dancing.

The Barbecue cook off saw 53 teams compete and was won by The Smokin Hills of Overland Park, Kansas.

The Ozark Mountain weather certainly contributed to the success of Bikes, Blues BBQ. We’d had quite an unusual spell of overcast weather leading up to opening day. As soon as the rally started, blue skies broke through and temps stayed in the low 70s. Just absolutely gorgeous weather.

The whole purpose of Bikes, Blues & BBQ is to conduct a safe, fun and family-friendly motorcycle rally and all profits go to local charities. It will take about a month for all expenses to be paid at which time the charitable donations will be announced.

Mark your calendar now for next year’s rally - September 29 – October 2, 2010.

For more information and pictures:

http://www.bikesbluesandbbq.org/

Back to the Drawing Board – Again – for Fayetteville High School

2009-09-19T16:31:00.002-05:00

The voters of Fayetteville School District spoke clearly and loudly about the proposed 4.9 mil increase in their property taxes to build a new high school. The answer was a resounding NO!

Two huge factors unquestionably influenced the vote – the overall expense and calling for the election at a time when many people were already struggling to provide for their families.

I believe the large majority of residents agree that an updated facility is needed. So, it’s back to the drawing board for the school board. It took four years to reach the current point. How many more years for the next plan is anyone’s guess.

A few things to consider (or re-consider) based on some of the issues already on the table:

1. Reconsider the decision to add 9th graders to high school. Building a new high school for only grades 10-12 means a smaller, less costly school.

2. Reconsider the decision to demolish the 1991 addition because it’s “too old” to blend with new construction. It’s only 18 years old and it’s possible taxpayers are still paying for it. Several more millions of dollars saved. It could be that the most cost-effective solution is remodeling the current high school totally and making additions as necessary to accommodate future growth.

3. Reconsider remodeling the existing site and building a second high school on property the district already owns. In that case, I would divide the two schools by grade rather than by the part of town that students come from. This might bring the 9th grade back into the equation if one HS is for 9-10 grade and the “new” HS is for 11-12 grade (or vice versa). Creating two 4-year high schools in different parts of town could have unintended consequences as happened in Springdale, where a sort of “classist” divide has arisen between the old HS and the new Harber High, which has even affected property values in different parts of Springdale. This, despite the fact that the old Springdale High has been remodeled and has some innovative programs that the new Harber High doesn’t have.

4. Actually, while back at the drawing board, reconsider the decision to build a new school at the existing site. One of several reasons I heard for doing so was the nostalgia factor. Something like, “That’s where I went to school and we should keep the high school here.” I don’t understand that rationale. If all the buildings are demolished and a new school is constructed on that site, everything tangible – including the murals that many art students created over the years and which give the current HS a link to the past – is lost. All that’s left for fond memories is the dirt the school was built on.

As I’ve written previously, there are many valid justifications to build a new high school (or even a second high school or even just remodeling the existing school). Now that the millage proposal has failed, the school board must rethink their previous decisions, open the process to the people again because folks have learned much more about this issue than they knew even a few months ago, and move forward with an affordable plan. It can be done.

For more information:

http://www.nwaonline.net/articles/2009/09/15/news/091609fzelectionresults.txt

Vote Tuesday in Fayetteville!

2009-09-13T23:30:00.002-05:00

Residents of Fayetteville School District have the opportunity to make their voices heard this Tuesday, September 15, regarding the proposal to increase property taxes by 4.9 mils to build a new high school.

This is just a reminder so no one will forget to vote on such an important matter.

I have written about this issue in the past, but I still have mixed feelings about the issue. Bottom line is that I think that Fayetteville needs a first class educational institution to continue to attract good people to live here. As a university town and cultural center of NW Arkansas, we provide a good education for our children. Fayetteville HS in the past has rated highly for academic excellence nationally, but the physical structure needs to keep up with the times and take us into the future. The issue involves the different ways to get there.

One the one hand, it seems that a first class facility could be obtained for less money. I didn’t follow the debate on whether the 9th grade should be included in the new school (basically I think it shouldn’t and a lot of money could be saved by not including them, but if that’s what has been decided through the democratic decision-making process, it’s no longer up to me).

But the big issue is paying higher taxes, and no one wants that unless there is a good reason.

On the other hand, there are some good things that can be said for a new HS.

Basically, Fayetteville voters need to decide about quality of life in the future, and the high school (even if one doesn’t have children who will be attending the school) is an important part of the equation. We need to attract new industry to the area, and people moving here want to know that their children will receive a good education. Fayetteville HS already has a great reputation and rates highly in terms of academics, even nationally. And whether to build a new HS has been through several years of eliciting public input on where and what will be built. What will be voted on is what has resulted from the public process. It’s what the people say they want. And I believe in letting the people decide.

In the interest of full disclosure, two things: 1) my son graduated from Fayetteville HS five years ago. I asked his opinion and he indicated that the physical plant probably needs some improvement. But surprisingly his main question had to do with what would happen with to great murals in the existing building. Those are part of the history of Fayetteville High and will probably be lost in the renovations. And that’s something no one has mentioned in the debate…. 2) I no longer live in Fayetteville, so whatever is decided won't affect me.

For more information, read my blog article dated July 11, 2009. Also there is a comprehensive article and some great letters to the editor in the Sunday (9/13/09) NW Arkansas Times. I’m not providing links any more because you now have to pay to read the Arkansas Democrat Gazette and all of its affiliate papers. The Morning News has an article on Sunday about how the different NW Arkansas school districts spend their money.

For both newspapers click on NW Arkansas Links on the home page of http://www.JudyLuna.com. Check the left column on the resulting page for the two newspapers.

Light Rail for NW Arkansas?

2009-09-11T22:48:00.003-05:00

Picture working for Walmart, living in Fayetteville or Springdale and not having to fight traffic to get to and from work. Read the newspaper on the way (if they still exist) or keep up with your email. This could be the reality in 10 to 20 years in NW Arkansas.

Thursday the idea for light rail in NW Arkansas got a boost when the Washington County Quorum Court unanimously passed a resolution to implement a feasibility study on the issue. This is the first step toward getting federal funding for such a project.

This is welcome news to me, as I have been bemoaning the slowness of infrastructure improvements in NW Arkansas for a long time, especially for transportation. But the city of Fayetteville passed a similar resolution on July 7, and Springdale passed a similar resolution on August 25.

Some people think the idea is way too idealistic and can never come to pass, but a growing number of supporters say otherwise. Justice of the Peace Gary Carnahan, who brought forward the resolution is one of them. He compared the idea of light rail now to the development of the NW Arkansas Regional Airport and credited our “nice airport” to visionary people in the area.

For light rail, one of those visionaries is Stephen Luoni, director of the University of Arkansas Community Design Center in the Architecture Department. About a month ago, I heard Luoni speak at an informational meeting at the Fayetteville Public Library. It all made perfect sense to me since we already have the rails for a large part of the system. A majority of costs in other areas have been to acquire right of way, and we already have an underused rail system passing through all of our major towns.

The Community Design Center has already thought through many aspects of the project and compared it to similar projects in other parts of the country. Although NW Arkansas is not a major city, such projects in other less populated regions have met with success.

The poster child for light rail projects has been Dallas, where similar objections were voiced two decades ago. Now the Dallas rail system is considered to be one of the best in the country and has generated more than $1 billion in mixed-use, high quality urban development.

The NW Arkansas system would extend from the Fayetteville airport north through Fayetteville, Johnson, Springdale, Lowell, Rogers and Bentonville and end at the NW Arkansas Regional Airport. It could stimulate economic development, create new housing and commercial projects revitalizing central areas of our towns, and provide sustainable “green” growth instead of the sprawl that results from new highway construction. It would be a less expensive way to move more people, and it could enhance our already-famous quality of life indices.

Other advantages are that it would allow more parts of NW Arkansas to stay “natural” and create so-called Transit-Oriented Development (TOD). This type of development creates a lifestyle not just a transportation system, and it guides smart growth. I could go on, but there’s too much for just a blog article.

For the feasibility study to actually take place, federal funding must be pursued by the NW Arkansas Regional Planning Commission, the Northwest Arkansas Regional Mobility Authority, and the Northwest Arkansas Council.

I hope they start the process soon. It’s going to take a long time for all of this to happen so we need to start now.

For more information about the system envisioned, visit the U of A Community Design Center website at http://uacdc.uark.edu/. Download a nifty book about the envisioned transit system, or for a small fee, have them mail you a copy.

It’s Almost Time for Bikes, Blues and Barbecue in Fayetteville Arkansas!

2009-09-03T19:15:00.003-05:00

Mark September 23-26 on your calendar and come to Fayetteville for the big BBB event. Each year it grows bigger and better.

What’s to do, you ask?

Show off your motorcycle, ride it in the Parade of Power or the Poker Run. If you don’t have a bike, there will be thousands of them to look at. Most of the major motorcycle companies will be present and some will offer demo rides.

Eat some of the best barbecue around or help decide the People’s Choice Award. The Kansas City Barbeque Society has added BBB to its 2009 Great American BBQ Tour.

Listen to great music – free.

Enjoy breathing good, clean air. Enjoy good, clean family fun. Enjoy the beautiful Ozarks.

And if all this isn’t enough, how about the fact that the proceeds go to local charities and no taxpayer funds are used to host the event. Hundreds of volunteers make it happen.

See you there?

For more information:

http://www.bikesbluesandbbq.org/

Sometimes “No Vacancy” is Good News

2009-07-28T16:15:00.000-05:00

There’s been many a time while traveling that I saw “No Vacancy” signs and wished the “No” part wasn’t lighted. But according to the Arkansas Business Journal, hotels in Fayetteville and the surrounding area are happy to report “no vacancy” for both the Razorback football team’s opening game on September 19 and the big Bikes, Blues and BBQ shindig September 23-26 (more on that later).

I keep hearing pieces of good news in various sectors and one has to wonder if indeed the worst is over. I honestly don’t know about that but then, who does?

I do know to having sell-out crowds descend on Fayetteville is extremely good news. Let’s hope everyone has a wonderful September in NW Arkansas. We’ll tell them “Y’all come back real soon!”

P.S. If you haven’t made reservations yet for those two weekends, you might want to get on the phone or on line to do so.

For more information:

http://www.arkansasbusiness.com/article.aspx?zone=AB_ENEWS_EarlyLateBreaking&lID=&sID=&ms=&cID=PM&aID=116238.54928.128364

Benton County Property Taxes Lowered for Some

2009-07-19T21:02:00.001-05:00

Benton County has lowered values on some residential real estate by more than $2.5 million dollars. That means about 38,000 people will see their tax bills lowered for 2009. Note that 2008 taxes, which must be paid in full by October 10, 2009 will not be affected.

The move was a result of a report by an independent appraiser that Benton County had hired due to the public outcry on reassessments. The adjustments were limited to residences in towns and cities, not business or commercial properties or rural residences, since the majority of devaluations were residential properties located in cities, according to the report.

The county is under no obligation to send notices of the adjustments to owners via U.S. Mail. To find out if your property is affected, you need to go online http://www.co.benton.ar.us/BentonCountyNews.aspx?id=22 and fill out a short form.

If you wish to appeal the assessment on your home, you need to contact the Benton County Assessor at 479-271-1000 between July 20 and August 17 to make an appointment with the board of equalization.

Washington County property owners take heart. The county assessor is seeking permission to begin a similar process. If she receives the go-ahead, it’s possible homeowners and landlords may see tax relief next year.

You can call the Washington County Assessor’s Office now at 479-444-1500 if you wish to appeal the appraised value on your property.

For more information:

http://www.nwaonline.net/articles/2009/07/08/news/070909bzequalization.txt

Mixed Feelings About Proposal for Fayetteville’s New High School

2009-07-11T15:05:00.001-05:00

I have mixed feelings about the proposal to build a new high school for some 3,000 future students on the site of the existing high school in Fayetteville - and the 4.9 mill tax increase it will take to build it. Perhaps the best way to express my feelings is in the form of questions…

Given the current economic factors, what are the chances of taxpayers approving a measure that would increase their property taxes by almost $165 annually? The Washington County Assessor says taxes on an average house in Fayetteville (valued at $166,075) are currently $1425. The last time I checked, Fayetteville school taxes were the highest in NW Arkansas.

It’s expected those 4.9 mills will be on the tax bills for 30 years and when the economy improves and property values start increasing again, the $165 will go up in accordingly.

The strange thing about taxes is that they seldom if ever go down. By the time 30 years has passed no one seems to remember the increase was scheduled to stop. It’s usually a case of “Let’s continue those mils because we have many needs to fulfill.”

Fayetteville voters have, in recent years, been reluctant to pass millage increases. The largest millage increase passed by voters in the past 20+ years was 4% and many a proposal has been defeated.

Is it truly in the best interest of all parties to build the new school on the current site? I know public meetings were held with all sorts of factors and wishes considered but I sometimes think a better choice would be to build on a more level site to lower costs and remove disruptive construction activities while classes are in session.

I also think many taxpayers will readily recall the fact that the Fayetteville school board had the opportunity to sell the existing high school site to University of Arkansas for $50 million – money that would have gone a long way towards the cost of a new school at a different location and a much lower tax increase.

Fayetteville always wants something better than surrounding areas to set it apart - but at what cost? Is it really necessary to demolish the addition built in 1991 because to remodel it is not good enough for Fayetteville? Rogers used part of an existing site when it built a new high school and saved their taxpayers a good piece of change.

But the most interesting aspect of the entire proposal is this: $83 million to build the school but the school district is asking for $113 million – a difference of $30 million they say is needed for furnishings, specialized construction of classrooms, technology, staffing, and other operation costs.

Fayetteville’s proposal to build five smaller, friendlier buildings instead of one big building also adds to the cost plus the district says it will need more staffing for five buildings than it would for one large school.

Let’s look at the cost per student of Fayetteville’s proposal. At $83 million amount, that’s estimated to be $27,667 per student. At $113 million, that’s $37,667 per student. Springdale’s cost per student was $18,619, Rogers was $15,600 per student, and Bentonville came in at $17,534.

How much extra will it cost to make the new school LEED (Leadership in Energy and Environmental Design) compliant? The LEED Council says schools built to their standards use approximately 1/3 less energy and water and create some 75% less solid waste. The Council estimates building to LEED standards adds about 2% to construction costs. Everyone is thinking about the environment these days and Fayetteville as a whole is trying to go ‘green,’ so the LEED certification certainly seems desirable.

No one wants higher property taxes but everyone wants the best school possible. Now that I’ve just written that sentence, it screams out at me – COMPROMISE! Let’s build the best school we can afford!

Fayetteville is a great place to live, work and raise a family but does it need the most expensive public school ever built in our state? I really have trouble justifying the money it will take to earn that distinction.

I think the district has much hard work ahead to sell this proposal to the taxpayers. There’s a lot to consider before the September election.

For more information:

http://www.nwarktimes.com/nwat/News/77657
http://www.nwaonline.net/articles/2009/06/25/news/062609fzfayschlbrd.txt
http://www.nwaonline.net/articles/2009/06/18/columns/brenda_blagg/061909blagg.txt
http://www.nwarktimes.com/nwat/News/77779
http://www.fayar.net/community/p21ccharetteinfo.html
http://www.nwarktimes.com/nwat/News/77972/
http://www.nrdc.org/buildinggreen/leed.asp

Points to Ponder Regarding “Short Sales” and Foreclosures in NW Arkansas

2009-07-01T16:10:00.001-05:00

This post is somewhat long—but the topic is complicated. Be patient and bear with me.

A lot of what’s on the market right now in NW Arkansas is either a short sale or a foreclosure (REO). This type of property is called a “distressed” property, and is very common across the country as well as in NW Arkansas.

When a home is sold for less than what the seller owes the lender, it is called a “short sale.”
In that case, the seller’s lender must approve the sale. But this is not as easy as it sounds.

Short sales were originally seen as a good deal for homeowners who found themselves in the sad position of owing more than their home was worth in the current market. It seemed simple enough for those sellers who were being relocated or absolutely had to sell for other reasons--get the mortgage holder (bank or other lender) to sign off on the sale, and everything would be over and done with. The seller would list and sell for less than what was owed, get a recordation of release or Satisfaction of Mortgage from the mortgage lender upon receipt of funds.

However, to sell a home as a short sale requires that the seller have a bona fide emergency (i.e. medical emergency, etc.) and not be able to sell his/her home under normal circumstances. This is a pre-foreclosure measure to try to protect the seller’s credit. But there is a lot of paperwork involved (including a “hardship letter”), and the banks are extremely slow to approve this type of transaction, despite recent government incentives to do so. Also, unlike REO or foreclosure properties, procedures for dealing with short sales within financial institutions have not yet been established and often take a long time. Thus even agents who specialize in short sales often have trouble getting the banks of their sellers to agree.

Ultimately if a seller has other assets (which would allow him to pay off his mortgage), is current on his payments, or is in the process of bankruptcy, the seller may not qualify for a short sale. Just being “upside down” with regard to selling one’s home is not enough.

On top of it all, it often turns out that buried in some fine print somewhere, mortgage holders have the right to pursue the difference between what was owed and the sales price. If the property has a second mortgage, a separate negotiation with that lender would also be required.

Lawsuits are becoming more frequent as lenders pursue every option to recoup their losses, especially if they determine the seller has other assets as opposed to being bankrupt.

Another aspect of short sales that was frequently overlooked is the income tax due on the amount of forgiven debt. In the past, IRS ruled that the amount of the discharged indebtedness had to be added to gross income for that year.

Now the feds have given a temporary break to most homeowners who sell short. A special form, Form 982-Reduction of Tax Attributes Due to Discharge of Indebtedness, needs to be filed with IRS.

Not to be overlooked is how state tax commissions will treat the situation. I highly recommend that anyone in this position consult with a tax professional, not to mention a real estate professional who specializes in this type of transaction.

If this all seems to be too complicated, the most important thing that people, who are behind on their mortgages, can do is talk to their lenders. It may take some doing to find the right person to talk to, but sometimes arrangements can be made for paying back their loans on new terms, etc. (i.e., loan modifications), so as to avoid a short sale or foreclosure. Basically the first step for people who want to remain in their homes is to contact their lender to see if there is a way to make an arrangement. They should not avoid calls from their lender when they are behind on their payments.

There are also important issues for buyers of properties listed as “potential” short sales.

Getting approval from the seller’s lender in a short sale situation often takes a long time – average about 90 days, and sometimes more. Thus if a buyer needs to "lock in" his interest rate for a 30- or 45-day period, there’s a good chance the short sale will not be able to close in that time.

From my point of view as a buyer agent, purchasing foreclosed properties (many of which are listed by realtors) may be easier and quicker than purchasing a property as a short sale. Those properties have already passed through the foreclosure process and can usually close in a normal time frame.

But there are also pitfalls there. First, foreclosure properties are normally sold “as-is, where-is”, which means that what you see is what you get. The seller (bank or other financial entity) will not be doing any repairs.

According to the normal Arkansas real estate contracts from the Arkansas Realtors Association, a buyer has 10 business days to have an inspection. If issues that make the buyer not want to purchase the home arise, the buyer can get out of the contract and get his earnest money back. There will be no repairs on the property, but at least the buyer will know what it will take to bring the property back to livable condition.

But in a recent training course which I attended on “distressed” properties, the instructors recommended that buyers take the inspector with them when they view the property even before making their first offer. If there is a major issue which will require extensive repairs, the inspector (without a written report and at a lesser price than a normal inspection) may be able to give an indication of what is wrong with the house before even making an offer. This would influence the offering price, while taking into account the cost to fix the problem.

Another aspect of foreclosures having to do with problems financing the foreclosed home, especially if it needs extensive work to make it livable and thus make it possible for the buyer’s loan to be approved. Banks and other financial institutions, who own the properties in question, do not want to make repairs, so if a home needs work, there may be a problem to get the buyer’s loan approved.

Normally mortgage loans permit buyers to purchase homes in livable condition. If the foreclosed home needs extensive repairs to put it in livable condition, there are a number of alternatives. If the home is a Fannie Mae owned home it may be eligible for Homepath Financing which will allow financing for the repairs. Freddie Mac has a program called Home Steps financing for homes owned by them.

If the home is not Fannie Mae or Freddie Mac owned, the FHA 203K program may provide a solution. This type of loan allows for funds to make repairs and bring the home into livable condition. However, most banks do not do this type of loan, so make sure the loan originator is familiar with the new “streamlined” version of this loan and can get it closed. Your realtor can help with recommendations in this regard.

The current real estate market situation is extremely complicated for sellers, especially those with problem mortgages. Often it depends on who “owns” your mortgage if you are having a problem. The people you make your payments to may not own your mortgage, but rather only be the “servicer”. If you are a seller wanting to sell your home, check with your realtor and your lender, especially if you are having problems.

The easiest solution ultimately (if you are a buyer) is when you can find a “normal” property, which is priced to compete with short sales and foreclosed properties. Normal properties at excellent prices are available and the buyer is less apt to run into title or other problems that more frequently rear their ugly heads on foreclosed properties or lengthy negotiations with lenders involved in a short sales.

The important thing is to have a buyer agent, knowledgeable about the market. Your agent can do a market analysis of recent sales in the area so you don’t pay too much and check on the history of the home to determine “wiggle room” for a potential offer.

And if you are a seller who does not have to sell and can continue to pay your mortgage, it is best that you do so and not put your home on the market now. This market will not last forever.

It’s a great time to purchase a home now, but not necessarily a great time to sell—except if you can save more money on the buying side compared to what you are losing on the seller’s side. And if you are an investor, there are some phenomenal “deals” out there now.

Your experienced real estate agent can guide you through the pitfalls of the current complicated market whether you are a buyer or a seller.

Look for a new forthcoming section about foreclosures and short sales on my main website at www.JudyLuna.com. I hope to have it up in a week or two. There will be more detailed information there.

For more information:

http://online.wsj.com/article/SB124104990739271023.html
http://www.fanniemae.com/homepath/homebuyers/buying_fanniemaeowned.jhtml
http://www.freddiemac.com
http://www.hud.gov

More Good News for NW Arkansas

2009-06-20T21:33:00.001-05:00

NW Arkansas was ranked 2nd best in the country on Forbes Magazine’s recent list of best and worst cities for recession recovery. Forbes projected Northwest Arkansas' gross domestic product to grow from $13.9 billion to $14.5 billion by 2010.

It’s always refreshing to see good news about our area and to know that prestigious organizations recognize the good things happening here.

Of course, this is not the first time for such recognition. NW Arkansas frequently receives excellent ratings in such areas as Best Places to Retire and Best Places to Raise a Family by Sperling’s and Kiplinger as well as Forbes.

Just a few weeks ago, Forbes ranked our area as 4th Best Place in the country for business and careers.

And we continue to add about 100 new jobs each month - admittedly fewer jobs than a couple of years ago but is still a positive figure by anyone’s standards.

Other news reports this week continued the encouraging news.

Arkansas surpassed all but six states in personal income growth in the first quarter. Only 11 states were able to report a rise in income. Average for the whole country was a negative ½ of 1%.

Arkansas had the largest drop of all states in initial unemployment claims for the week ending June 6, a decline of 1,206 claims compared with the previous week, the department said.

I’m not saying everything is rosy – we all know it could be better. But good news is good news and these days anything good is worth knowing.

For more information:

http://www.forbes.com/2009/06/09/recession-economy-cities-business-beltway-recovery-cities_slide_3.html

http://www.nwarktimes.com/adg/National/262305/

http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Thursday&lID=&sID=&ms=&cID=Z&aID=115496.54928.127622&page=2

http://www.nwarktimes.com:80/adg/News/262123

Open House Today 2-4 p.m.

2009-05-31T08:03:00.002-05:00

Open house today at 2427 Summeroak in the Pinewood Subdivision north of Springdale. This home has everything that most folks want--over 3000 sf, 4 bedrooms plus office, 3.5 baths, 3-car garage, granite counters, 2 living areas, wood floors, crown molding, covered patio and more. $322,000. Pinewood subdivison is conveniently located and has a community pool and clubhouse, playground, and a pond for catch and release fishing. Smith Elementary and Harber High.

Directions: From I-540, take the Elm Springs exit, go east on Elm Springs Road, turn left (north) on 40th St., turn left (west on Falcon), turn right (north) on Pinewood. Turn right into subdivision. Turn right at T. House is toward the end of Summeroak on the right.

Getting from Here to There--Transportation in NW Arkansas

2009-05-31T07:49:00.001-05:00

I came across an article the other day regarding a proposal for a high-speed, state-of-the-art rail line that might someday run between San Diego, California and Vancouver, B.C. While I don’t expect NW Arkansas will ever be ready for something like that, it did get me thinking (again) about the need to improve transportation in our area.

I’ve written about this problem before – but I don’t see a lot of significant progress.

For example, plans for a proposed light rail system in NW Arkansas don’t seem to be any further along than they were a couple of years ago. In fact, I don’t know if they’re still on the drawing board.

NW Arkansas is still very “car” oriented. There are decent bus lines but the funding is limited which means the routes are limited. The majority of folks in NW Arkansas have multiple vehicles and multiple garages to house them. Want to go to the movies? Get in the car! Want a hamburger? Get in the car! We bank from our car, get our prescriptions and other items at the drive-through. This love affair with the automobile will not help the new "Green" image NW Arkansas is trying to promote.

Meanwhile, traffic on I-540 and the connector roads during the rush hours grows worse by the day. I-540 needs to be widened to 6 lanes (3 north, 3 south). There’s good news lately about the Bella Vista bypass. Currently, the high-speed interstate ends in Bella Vista and cars and trailer trucks crawl through a town with several traffic lights. When the traffic finally reaches Missouri, the road once again becomes a high-speed highway. Lack of funding has delayed this project for years.

Now it appears the Arkansas and Missouri highway commissions will make a joint request for funds for the Bella Vista bypass from the $1.5 billion federal stimulus money being made available to states for major highway projects.

The proposed Hwy. 412 bypass north of Springdale was finally approved last year but doesn't have the money to even acquire the land--never mind actual construction.

My mother used to say "make hay while the sun shines." The sun is now glowing brighter than ever with the $787 billion economic stimulus bill Congress approved plus we have a sympathetic ear in Washington these days.

Those in positions to do something about the transportation situation in NW Arkansas should get on the stick and do whatever it takes to obtain funding for necessary infrastructure improvements. If we can’t get a light rail system up and running, we need to improve roads.

The city of Springdale has been proactive in developing alternative routes to Hwy. 412 for east/west transportation, which was always a nightmare, especially during rush hour. Huntsville Road is now almost done with 4-5 lanes from I-540 going east to Hwy. 412. The new Don Tyson Parkway across the south side of town was exceptional planning and now provides a great alternative to Hwy. 412. And work continues on another east-west road across the northern part of the city. Springdale has shown great foresight in passing bonds to get these improvements completed.

Rogers built a new exit from I-540 to the Pinnacle Hills Mall. Another example of foresight is the recently widened New Hope Road.

Bentonville improved S. Walton Blvd. from a little two-lane road to 5-lanes (and it’s jammed with traffic). I can’t imagine how that city could have grown as it has without widening that major road.

Contrast this to Fayetteville, where the ‘head in the sand’ mentality seems to prevail with regard to growth. The ‘Keep Fayetteville Funky’ folks would like that growth not happen, but it is happening and must be dealt with in a positive manner and with foresight. I don’t mean to imply Fayetteville hasn’t done anything. Indeed, the widening of Hwy. 16 West (Wedington) has really improved transportation to I-540. And in the near future, a similar project will widen Mt. Comfort Road.

On the other hand, getting from the east side of Fayetteville to the west side (or vice versa) is a nightmare. Having a mountain in the middle of town doesn't help, of course, but people rightfully expect to move expeditiously from one side of town to the other and funky little two-lane roads do not cut it.

The wider Joyce Blvd. is great, but we also need wider and easier access on the south end of town and through the middle of town. I can't picture a 4-5 lane through the historic district, so Township would seem to be IT in this regard. There was a proposal several years ago to make Township a 4-lane road from Crossover to Gregg Street. It was blocked by residents along that route, especially from College to Crossover, and I fully sympathize with property owners there. On the other hand, the few residents that this would have affected need to be cognizant of larger goals.

If we are proactive in transportation and infrastructure, our area will continue to be on national lists of "10 Best" places to live. If we keep burying our heads in the sand while hoping for a miracle, growth will come to a stand still along with the traffic.

This area is still growing and will continue to do so. Any major improvement will take years and lots of money to accomplish but if we formulate tangible plans and work with our elected officials in Washington, it might be possible to get moving. It’s time to get on the stick and do whatever it takes to obtain funding for necessary infrastructure.

If we can’t get a light rail system up and running, or at least a public bus system, we need to improve roads.

For more information:

http://www.hispanicbusiness.com/news/2009/5/11/highspeed_rail_may_connect_california_to.htm
http://www.arkansashighways.com/Environ/SpecialStudies/001966/001966.htm
http://nwasource.com/gov/2009/03/13/state-will-file-bella-vista-bypass-application/

1st Quarter 2009 Skyline Report

2009-05-24T09:31:00.003-05:00

On Friday, May 15, I attended the breakfast meeting at the Holiday Inn Convention Center in Springdale where the first quarter 2009 Skyline Report highlights were presented. Kathy Deck, Director of the U of A Center for Business and Economic Research, talked about the NW Arkansas housing market—especially conditions in Washington County, and Scott Phillips, Senior Fixed Income Portfolio Manager for Arvest, talked about some trends in the national economy which give a ray of hope that the current recession may be starting a recovery.

According to Phillips, to date there have been $1.4 trillion in losses at global financial firms. The current estimate is that such losses will go to $3.4 trillion before the recession ends. Consumer confidence is still declining nationally, and as people save more, that’s actually bad for the economy, since they aren’t spending money. On a positive note, however, consumer debt and bank lending corrections are decreasing, but unemployment rates are still high and are expected to go higher.

In response to a question from the audience, Phillips noted that for people who have lost a lot of money in the stock market, the estimate is that it will take anywhere from 3.5 to 8 years to recoup those losses. He indicated that the lowest the stock market fell was on March 9 of this year and has been rising slowly since then. Normally, he said, stock prices bottom out before earnings.

He also indicated that although the economy remains in recession, credit conditions are slowly improving. It’s a good time to purchase stocks while they are still “slightly cheap.”

For the housing market segment, Kathy Deck began where she usually does, with employment numbers, since positive job growth is what normally attracts people to NW Arkansas. Those people, in turn, purchase homes and generally determine the condition of the real estate market, including residential, multifamily and commercial sales and rentals.

Whereas in the past, NW Arkansas seemed to be immune from the type of job loss that was occurring in other parts of the country, the first quarter of this year saw the destruction of about 1300 jobs here, a decline of approximately 1% in non-farm employment. The only sectors in which there was positive job growth were Education and Health, Professional and Business Services, and in the Leisure and Hospitality sector. All other types of employment experienced job loss. Government remained steady.

The commercial sector in NW Arkansas saw very little in the way of building permits in the first quarter, and the amount of available square footage rose in Fayetteville and Springdale, as well as in NW Arkansas as a whole.

For multifamily, the vacancy rates have risen. In Fayetteville this is because of new spaces being added, in the form of new apartment complexes being built. For Springdale, it is because of population movement away from the city.

In the residential sector, the number of building permits issued for Fayetteville is the lowest it has been for many years, less than 50 for the whole first quarter, compared to over 200 during each of the peak 2nd and 3rd quarters of 2005. For Springdale only about 25 residential building permits were issued during Q1, and in West Washington County (which includes communities such as West Fork, Prairie Grove, Lincoln, etc.) new building permits were essentially at zero for the quarter. Nevertheless, the value of the average building permit in NW Arkansas has been rising in Washington County to approximately $190,000.

Needless to say, the number of houses under construction in active subdivisions has also declined, as has the absorption rate. The number of available lots in active subdivisions also showed a small decline compared with Q1 of last year, a positive step. Also showing declines were the number of homes sold in Washington County during Q1 and the average price per house sold.

Unlike in the past, according to Deck, declines in absorption are now because people are not purchasing enough homes. In the past it was because of over-building. Because of the low number of building permits pulled in the first quarter, that is no longer the case.

Affecting the housing market, of course, is the large number of foreclosures (see my post of May 16). This is a major factor driving down home prices.

For more information, see also:

http://www.nwanews.com/adg/Business/260081

A Few Observations about the NW Arkansas Housing Market

2009-05-16T11:45:00.003-05:00

While some local economists are seeing a bright spot here and there, the rate of foreclosures in Arkansas continues to rise, and the real estate market in NW Arkansas still has a long way to go to get out of the hole it is in. According to Kathy Deck, director of the U of A Center for Business and Economic Research, in Benton County there are now 1500 bank-owned properties, up from 747 six months ago. In Washington County, the situation is not quite as bad with 548 bank-owned properties, up from 475 six months ago.

In April alone, there were 504 new foreclosures in Benton County according to RealtyTrac and 357 new foreclosures in Washington County. These are not the numbers anyone wanted to see. Nationally, one in every 440 U.S. homes received a foreclosure filing in February.

It could be worse. Nevada had the country's worst foreclosure rate in February: one in every 70 housing units, which is an astounding 156% increase from February 2008. Arizona's rate was second, one foreclosure for every 147 houses.

I don’t believe anyone ever expected to see such misery in the housing market!

On the other hand, there are some tremendous opportunities for buyers now. I believe there are some outstanding bargains these days whether for first-time home buyers or investors. The average price-per-square foot of homes sold so far in 2009 was $77, down 4.9% from January and 8.3% lower than a year ago. In some cases, homes are being sold at 20%-40% below their original asking price, which is not surprising given the fact that the majority of homes sold these days are distressed sales or foreclosures.
The question everyone asks me is: has the market bottomed out and started a slow climb up? My perception is that the answer is not yet, but we may be getting close.

Spring is here and more buyers are appearing. Sales throughout the country actually increased 5.1% in February. In April in Fayetteville, more homes were sold this year than last year, 85 this April compared to 75 last April.

The new federal tax credit of up to $8,000 is a windfall for qualified first-time homebuyers. Interest rates are at their lowest ever – under 5% APR for a 30-year fixed mortgage. And the feds are taking unprecedented steps to get the credit system working again.

It’s definitely a buyer’s market and the selection of homes in outstanding.

I always wanted to buy into the stock market when prices hit bottom and sell when it was at the top. I never managed to do that and neither has anyone I know.

It’s the same with buying a home – the biggest investment most folks will ever make. It’s a long-term investment that you can live in while weathering the ups and downs of the market. We may not be at the very bottom but I think we’re close!

For more information:

http://www.nwanews.com:80/adg/Business/254750/
http://www.nwaonline.net/articles/2009/03/16/business/031709bushomesales.txt
http://www.nwarktimes.com/adg/National/255611
http://www.amerisave.com/?source=2540&gclid=COzDt97Ew5kCFR7yDAodTEffvA
http://www.realtytrac.com/states/Arkansas.html
http://realtytimes.com/rtmcrcond5/Arkansas~Fayetteville~judyluna
http://realtytimes.com/rtmcrloc/Arkansas~Springdale

Do Your Kids Want to Play Basketball? Fayetteville is the Winning Place!

2009-05-16T11:09:00.000-05:00

I’m a little late with this post, but we had an extraordinary event happen last month. There was a lot of celebratory noise coming from Fayetteville -- because of the high school basketball champions – two of them!

That’s right, both the Fayetteville High School boys and girls basketball teams became the new state champions. And not only that, they each went undefeated for the entire season.

The Lady Bulldogs team went 32-0 for the season and won the class 7-A Arkansas State Championship title by a 72-61 win over North Little Rock. (7A is the highest classification.)

Just a short two hours later, the Bulldogs (boys) capped their 30-0 season by a 40-34 victory over Rogers to win their 7A Championship title.

It’s not the first time a high school has won both boys and girls titles in the same season but for both teams to go undefeated and cap it off with the title of champion is almost unheard of. It is a first in Arkansas and may even be the first in the country.

I just want to say Congratulations (even if a little late)! Way to go!

For more information:

http://www.nwarktimes.com/adg/Sports/254985/print/

http://www.nwaonline.net/articles/2009/03/16/opinion/031709editorial.txt

NW Arkansas Positions Itself as a Leader in the Sustainability Movement

2009-05-03T13:15:00.000-05:00

It wasn’t too many years ago that NW Arkansas was known as a rural farming area, if it was known at all. But Sam Walton had a small store in Bentonville – and you know the rest of the story.

As Wal-Mart grew by leaps and bounds, so did NW Arkansas. Wal-Mart’s major vendors started opening branches here and they and their families needed housing, schools, banking, hospitals, shopping centers, highways, sewer systems, and on and on.

The burgeoning population created the housing and construction boom which, of course, brought more families with more needs.

But the economic downturn around the country and the world caused folks in NW Arkansas to wonder if this growth could continue.

The answer may well be yes! Sustainability-based research and development has the potential to drive Northwest Arkansas for years to come and action is already underway to position itself as “Green Valley.” (Think California’s Silicon Valley 40 years ago.)

Fayetteville in particular has been a leader for living green. The city has had a recycling program for several years, recently won the Arbor Day Foundation’s award as “Tree City USA” for the 14th consecutive year, and frequently wins the Garden City award for cities of its size.

Those recognitions may be small compared to the overall sustainability movement, but it bodes well for the mindset of residents and local governments.

The University of Arkansas-Fayetteville has an Applied Sustainability Center already up and running.

Forbes Magazine ranked NW Arkansas as #4 in the entire country on their new list of Top 25 Best Places for Business and Careers.

Some companies that specialize in such things as ways to improve fuel efficiency, maximize resources, minimize environmental footprints, reduce greenhouse gases, and the world's dependence on fossil fuel have moved here to take advantage of both the favorable business climate and the sustainability movement.

A few companies from Sweden, long recognized as a leader in sustainability technology, have set up U.S. headquarters here. Several other Swedish firms are in the process of doing the same and still more are seriously investigating the possibility.

Perhaps we have to give another nod to Wal-Mart for taking the position 3 years ago to reduce waste to zero and make sustainability a priority. It takes time to achieve a goal that mammoth but the fact that they’re working on it has garnered attention around the world.

Wal-Mart has more than 1,300 locally based suppliers who answered the call to develop new packaging, logistics and other practices that are now spreading throughout the industry.
Even The Washington Post and Wall Street Journal have recognized and published articles about what’s taking root in NW Arkansas.

The potential for NW Arkansas as a major player in the sustainability (green) movement is here and it’s very exciting!

For more information:

http://nwanews.com:80/bcdr/News/71577/

http://www.nwarktimes.com/adg/Business/252507

http://www.nwarktimes.com/adg/Business/240533

http://www.nwarktimes.com/nwat/News/75202/

The Internet – Ya Gotta Love It!

2009-04-19T13:19:00.002-05:00

I recently came across an interesting article that discussed who uses the Internet and what they do with it.

The survey broke usage down into several age brackets. In my group (older baby boomer) only 70% of those surveyed used the Internet for anything. I use the Net so much it’s hard to visualize what the other 30% who don’t use it at all do for correspondence, news, shopping, banking and business!

Technology is an essential part of my business. I have multiple websites where buyers can access all of the NW Arkansas MLS listings plus lots of information about buying a home. I also provide many useful links to all kinds of information about NW Arkansas.

I was one of the first few agents in NW Arkansas to provide a website to search for homes. I am among an elite group of about 200 agents nationally who have been invited to join the Allen Hainge Cyberstars, and I was an early recipient of the e-Pro certification.

Ultimately the Internet has totally changed the way I do business and the way people look for homes. There used to be fear among real estate agents that the Internet would replace agents - that people wouldn't need us any more. But that is not the case; in fact, people who want to buy or sell a home need agents more than ever.

The Internet has tons of information, but the key is to be able to INTERPET that information. A good agent (for the buyer or seller) can provide key market data and help their clients maximize what they can learn for themselves from the Internet.

For sellers, a techy agent can provide the maximum exposure of their property to the 90% of buyers who now search for their home on line.

For buyers, a techy agent can provide additional information on potential properties they may want to see. And techy buyers are way ahead of the others. They go online to research potential homes and rule out the obviously unsuitable ones. Ultimately, buyers and I save lots of time, not to mention gasoline!

The Internet also provides the means for me to quickly send listings and photos by email, as well as documents for signatures.

If I can help you buy or sell, please let me know. It’s what I do, and I particularly enjoy helping first-time homebuyers fulfill their dreams.

If you would like to see how your usage compares to others in your age group, go to:

http://www.usatoday.com/tech/webguide/internetlife/2009-01-28-online-generations_N.htm

The Mortgage Melt-down explained

2009-03-10T21:28:00.003-06:00

I just discovered a wonderful video on You Tube which explains the mortgage melt-down in terms that everyone can understand. It's very clear, and there's also part 2 to continue the explanation.

Click below to see part 1.

http://www.youtube.com/watch?v=Q0zEXdDO5JU

It applies to the current situation in NW Arkansas Real Estate in that in this area we are victim to what happened in the mortgage meltdown. In addition, there were some contributing factors.

For example, back a number of years ago, the stock market tanked. Local people (who maybe lost money in the stock market) started looking at real estate investment rather than the stock market. A piece of land or a house is a tangible entity after all. They invested in single-family rentals and other multi-family real estate.

Then in 2004 the Fayetteville-Springdale-Rogers MSA (Metropolitan Statistical Area--i.e. basically NW Arkansas) ranked #1 for the Millkin report on the economy for all of the US, ahead of Las Vegas. All of a sudden the vultures started circling. Investors from all over the country were trying to purchase the same homes that first time home buyers were trying to purchase. Prices skyrocketed on the low end as demand far exceeded supply. Builders were not constructing new homes on the low end, because land prices were too high.

The result was that it became almost impossible to purchase an affordable home in NW Arkansas.

Then the mortgage melt-down happened and the investors from elsewhere disappeared. Inventory in NW Arkansas was high (i.e. lots of homes on the market in all aprice ranges).

Now we have a lot of homes on the market including affordable homes. Prices have declined precipitously. Of course, it all depends on price range.

The bottom line is that now is a terrific time to purchase a home. There are a lot of homes on the market in all price ranges. The low end is showing homes for less than $100K, a phenomenon not seen in many years. Lots of foreclosures, but also lots of good deals.

If you want to purchase a home, give me a call. I can help. I mostly help buyers, but my knowledge of the market also helps sellers.

See my home search website: http://www.NWArkansasHomeSearch.com or my regular informational website at http://www.Judyluna.com

Benton County Homeowners to Receive a Break on Property Taxes—Yeah!

2009-03-07T01:06:00.000-06:00

Benton County will be lowering values on residential properties by 2% - 6%. The percentages vary by area. Northeast Benton County will decrease by 6%, the southwest portion of the county will decrease by 2%, and other areas will be between those two figures.

When homeowners received their property assessments in 2008 there were thousands of unhappy people. By law, those values were based on 2005-2007 sales when prices were rapidly escalating. Thousands of appeals were filed, which resulted in many lowered valuations.

Now that property values have decreased again the county assessor is taking the first steps to lower appraisals.

This is a bit of good news for homeowners who are seeing the value of their homes shrink.

Commercial and industrial property appraisals will remain unchanged.

Note: In Arkansas, counties assess properties every third year. Thus, the next reappraisal was not scheduled until 2011. (For more details about the hows and whys of Arkansas appraisals, see my blog “Benton County Reappraisal Process is Complete” which I posted July 19, 2008.)

For more information:

http://www.nwaonline.net/articles/2009/03/02/news/030309bzequalization.txt

http://www.nwarktimes.com/adg/News/253986/

$8,000 Income Tax Credit for First-Time Homebuyers--WOW what a deal!

2009-03-01T20:46:00.005-06:00

The new economic stimulus bill which was recently signed into law has a tremendous benefit for first-time homebuyers – a credit of up to $8,000! This is phenomenal--basically a gift from the federal government if you buy a home this year before December 1.

The credit is 10% of the cost of the home up to a maximum of $8,000 and does not have to be repaid if the buyer lives in the home for at least three years.

This provision is the difference between night and day compared to the $7,500 tax credit that took effect last year for homes purchased after April 9, 2008. The 2008 credit had to be repaid over 15 years, which essentially meant it was an interest free loan. (See my blog of August 30, 2008, “First-Time Homebuyer Tax Credit Explained.”)

So, I repeat: under most circumstances, the credit does not have to be repaid.

The home must be purchased between January 1, 2009 and November 30, 2009. December 1, 2009 is too late! The date ownership legally passes to the buyer is the qualifying date.

Who is a "first-time home buyer?" People who have not had an ownership interest in a primary residence during the last three years are eligible. Ownership in a vacation home would not be considered a primary residence.

Income qualifications for the full credit are $75,000 or less if single or $150,000 for a married couple. Partial credit is available to singles with incomes between $75,000 - $95,000 or married people whose incomes are between $150,000 - $170,000.

This is a refundable credit taken on the buyer’s federal income tax return for 2010. For example, if you will have already paid your full tax liability through withholding, you would still receive a refund of $8,000. Another example: you owed $5,000 in taxes and your withholding was $6,000. Your refund would total of $9,000. Last example: you owed $5,000 in taxes and your withholding was $4,000. Your refund would be $7,000.

Another extraordinary provision of the new law permits the buyer to elect to treat the purchase as if it occurred December 31, 2008 and take the credit on his 2008 income tax return. Even if the return has already been filed, an amended tax return can be filed to obtain the credit. This is especially useful for buyers whose income qualified them for the credit in 2008 but may have too much income in 2009.

Of course, the situation can be turned around. If the buyer would be better served in taking the credit on his 2009 tax return, he can reduce his withholding or estimated tax payments now instead of waiting until tax time in 2010.

All in all, I believe this may be the impetus needed to get people off the fence and into a home. Interest rates are low, inventory is huge, and $8,000 means a lot to most people. And it is so much better than last years $7,500 credit that, as mentioned above, has to be repaid.

The sad part for first-time buyers who purchased last year is that their $7,500 credit still has to be repaid. There is no provision in the law to forgive that and simply avail oneself of the $8,000 credit that does not have to be repaid. I certainly commiserate with them – but who could have possibly foreseen what this year’s law would provide?

IMPORTANT NOTE: This is my interpretation of the basic provisions of the new credit. I have tried to simplify things to give a picture of how this credit works but I urge you to check with your tax professional or accountant for full provisions of the law.

In any case, if you have not owned a home in the past 3 years and are thinking of purchasing a home as your principal residence, now is the time to do so. There are a lot of homes on the market now in NW Arkansas and some very good deals (especially foreclosures and short sales). As the spring progresses a lot of these good buys will be snapped up.

For more information:

http://www.federalhousingtaxcredit.com/2009/faq.php#5

http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712

Some Good News--NW Arkansas Housing Market One of the healthiest in the nation...

2009-02-24T22:48:00.002-06:00

This economic roller coaster that we’re all on these days has just taken another turn. Only a few days ago I wrote about Wal-Mart downsizing some 700-800 people at its corporate headquarters and the effect that might have on the overall housing situation in MW Arkansas.

Today we have good news.

Builder Online just named Fayetteville as one of the top 15 healthiest housing markets for builders in the country. In fact, Fayetteville was named #9. In today’s world, that’s quite a statement. And it comes from an independent research firm.

According to their research, the unemployment rate in Fayetteville was only 4.1% in fourth quarter 2008. Another strong factor Builder Online noted was home values dropped only 2.4% in the past year. Many, many cities suffered value declines of 10% and way up from there.

Of course Builder Online isn’t first to recognize good things about our area. Kiplinger, Sperling’s Best Places to Live, and U.S. News and World Report have already beaten them to it. Still, it’s always heartening when “outsiders” recognize what the people who live here already know. NW Arkansas is a great place to live.

The other thing is that all real estate is local. Despite “doom and gloom” in the national media, NW Arkansas is still a good place to live and to invest. There are some phenomenal “deals” out there, but now is the time to invest—low interest rates and most buyers have not hit the streets. Yet…

For more information:

http://www.builderonline.com:80/local-markets/the-healthiest-housing-markets-for-2009.aspx?page=7

Scary

2009-02-15T22:16:00.003-06:00

I just read a newspaper article about global warming that is positively scary. I've been watching how the North Polar icecap is decreasing and polar bears are having problems. This article appears to provide some reasons.

This has absolutely nothing to do with Fayetteville or Northwest Arkansas Real Estate, but this is a blog after all, and this article appeared to merit passing along.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/14/AR2009021401757.html?nav=hcmodule

I Guess NW Arkansas Isn’t Bulletproof After All…

2009-02-12T10:52:00.000-06:00

By now everyone has heard about Walmart cutting 700 to 800 jobs at the home office in a restructuring move. This has come as a big surprise to a lot of people including me, and I’m worried about a “chilling” effect that this could have on the local economy.

As the national media proclaim doom and gloom stories about job losses, increased unemployment rates, and yet more economic stimulus measures, we thought we weren’t as bad off as other parts of the country. Walmart and other large corporate employers in NW Arkansas have provided job growth here—smaller than in past years, but at least positive growth.

The other thing is that a discount store like Walmart usually does better when times are tough as they are now. Thus we thought this would keep our area “safe” from what’s happening elsewhere. So to have even Walmart cut 5% of their positions here is significant, and could affect the already suffering housing market.

The perceptions that the economy here isn’t as robust as people thought and that there may not be as many jobs available, may prevent new people from moving here and purchasing homes. On the other hand, some of those 700 people may have difficulty finding new jobs here and selling their homes to move elsewhere. Thus the chilling effect is magnified as the number of months of housing inventory increases at a time when sales are down compared to previous years.

For me as a Realtor® I’m disappointed. Yes, Walmart may be fiscally responsible to its shareholders, but when someone you know is one of those 700 people the negative effect is felt even more sharply. I just found out that a client of mine, a nice young man to whom I have sold a home and who was going to get married in a few months, was one of those laid off. He is, of course, devastated, and trying to take stock of his situation.

Ultimately the effect of these job cuts probably can’t be measured. But the actual as well as psychological chill this has caused locally goes beyond news reports on the situation. Only time will get us out of this economic mess.

For more information:

http://www.nwanews.com/adg/News/252028/
http://www.nwanews.com/adg/Business/252088/
http://nwanews.com/bcdr/News/70632/
http://www.nwaonline.net/articles/2009/02/11/news/021109azwalmartlayoffs.txt

What I Learned About Generators During the Recent Ice Storm

2009-02-06T10:43:00.002-06:00

Well, we're mostly back to normal after the severe ice storm last week in NW Arkansas. The electricity at my home went out on Tuesday; we finally got energy again on Sunday.

As I write it’s 10 days after the storm and according to news reports, power has been restored to all but about 20,000 homes – mostly in remote areas. Sometimes just getting to those homes requires chainsaws, bulldozers, and manpower to cut a path through the downed trees and power lines.

I really don’t know the number of homes and businesses that were in the dark at the worst of the outage. Suffice it to say more than 100,000 in NW Arkansas alone with hundreds of thousands of others throughout southern Missouri and into western Kentucky.

It was cold, dark, uncomfortable, and a test of patience and resourcefulness.

People with wood stoves and gas-log fireplaces faired pretty well in keeping warm. Outdoor grills and camping stoves provided a means of cooking. Kerosene lanterns, flashlights, and candles were put to good use.

I heard Wal-Mart and other stores were totally out of D-batteries, kerosene, and good old-fashioned telephones that don't need electricity to function. Someone I know couldn’t find a chainsaw for purchase anywhere.

The really lucky people had a portable, gasoline-powered generator to provide electricity for essentials such central heat (electric blower on a gas furnace), refrigerators, lights, and a reasonable quality of life.

I didn’t know anything about generators but I learned a lot in a hurry. In case you’re “in the dark” (pardon the pun), I’ll pass along what I learned.

*Generators are relatively inexpensive and easy to operate. A medium-sized generator (rated between 3000-6000 watts) is sufficient for an average home. It can operate the electric blower on a gas furnace, keep refrigerator(s) cold and lights on. If necessary, it can also power the pump on a water well.

*An electric clothes dryer and a microwave oven might even be possible as long as everything isn’t running at the same time. For instance, once the house is warm, shut that off and switch on the refrigerator.

*If you don’t want to run extension cords all over the house, consider buying a transfer switch. You’ll need an electrician to install that but it really simplifies the process. Then all you need to do is flip switches.

*There’s a ton of information on the Internet – everything from how to figure power surge versus operating wattage to prices and availability. Just Google “portable generators” and start reading.

*Generators must never be run indoors. They must be operated in fresh, outdoor air. (I think we all know that but a safety reminder never hurts.)

Now that the worst is past, I just want to say how impressed I was with the way people banded together to help each other. People with electricity invited family and friends to stay with them. Strangers helped strangers clear roads. The outpouring of mutual support was phenomenal.

It was an adventure that affected everyone, so that now that it's over, the main greeting question is: How long were you without electricity?

For more information:

http://www.ozarksecc.com/content.cfm?id=2075

http://www.carrollecc.com/content.cfm?id=2041

http://www.swepco.com/news/outages/viewstorm.asp?stormName=January%2027%20Ice%20Storm

Have Home Prices in NW Arkansas Bottomed Out Yet?

2009-01-17T11:33:00.005-06:00

See Video of Lawrence Yun of National Association of Realtors comment on the national housing market.

Recent reports indicate that the number of homes sold nationwide continued to drop in November of 2008. But, on the positive side of that statement, the rate of drop was smaller than in recent months.

Purchases of previously owned homes slid 8.6% in November to an annual rate of 4.49 million units.

The Pending Home Sales Index fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

One bright note locally is Bentonville, which actually had a 5% increase in home sales in September, and Fayetteville and Rogers experienced a slight increase in October. However, sales in all of NW Arkansas were down compared to the same periods last year.

We may (or may not, depending on your particular perspective) be hitting bottom. Although prices in NW Arkansas decreased for December the decrease was less than it has been, a flattening out. Of course, we have to wait a few months yet, to see whether prices will start increasing again.

There is also a seasonal adjustment that occurs as homes sold in the winter generally sell for slightly less than in the peak months during the spring and summer. Inventory is still high (i.e. lots of homes for sale).

For the most part homeowners who do not have to sell are staying put. People who must move due to job relocations are the ones selling and they are being forced to face reality and lower the sales price dramatically in order to more the property quickly.

Foreclosures are the other part of reality that is forcing sales prices downward. Until that sector stabilizes, it will be difficult to see prices increasing again.

The Consumer Confidence Index for November was 44.9, up from 38.8 in October, which was the lowest reading since the research group started tracking the index in 1967.

The Gross Domestic Product (GDP) index shrank 0.5% in the 3rd quarter of 2008. That was worse than expected and the weakest it’s been since 2001. GDP measures the value of all goods and services produced within the U.S. and is considered the best barometer of the country's economic fitness.

The Feds have made so many moves, projections, bailouts, refusals to bailout, promises and revisions that comprehension of it all is beyond the capability of most folks. (I’ve tried rubbing my crystal ball but all I see is clouds!)

I wish I could tell you what to do and when to do it but no one can with certainty these days.

The only thing I can say is that prices are significantly down in NW Arkansas and it’s a great time to purchase a home or investment property. If you’re thinking about selling, I would say wait if you can.

On the other hand, if you are thinking about moving up to a larger home, the amount you will save on your purchase may outweigh not getting as much as you might have hoped on the sale of your existing home. In addition, interest rates are at a record low, in the 5% range.

The main thing to keep in mind is that a real estate purchase is traditionally considered a long term investment. Whether we have hit bottom or not really isn’t important from that point of view if you plan to keep the property for awhile. The speculation frenzy of the past couple of years is past, thank goodness!

For more information:

http://tinyurl.com/a4tec3
http://www.nwanews.com/adg/Business/243513/
http://news.yahoo.com/s/ap/20081125/ap_on_bi_ge/financial_meltdown
http://www.nwarktimes.com/adg/National/244604
http://arkansasbusiness.com/article.aspx?lID=78&sID=79&ms=80&cID=Z&aID=110303.54928.122429

Demand Down, Rent Prices Down, New Buildings Going Up in Fayetteville

2008-12-22T21:46:00.003-06:00

Construction projects underway in Fayetteville, Arkansas, will add nearly 1500 rental units in the near future. That’s a rather astonishing number for a city the size of Fayetteville.

Demand for apartments in NW Arkansas has already softened and that creates pressure to lower prices. The vacancy rate is just under 10% in Fayetteville. Rogers and Springdale have vacancy rates of 10%-15%, depending on the size of the apartment.

And the new units haven’t even come on board yet.

Consumers are understandably happy when prices drop but property owners have a tough time holding their heads above water when vacancy rates increase. Added pressure is coming from homeowners who decide to rent rather than sell their homes while they wait for the market to rebound.

So, at first glance, the situation seems contradictory. But, we need to remember several factors affecting NW Arkansas in general and Fayetteville in particular.

While most of the country is suffering through a recession, NW Arkansas continues to see new people move here. Job growth is positive here. As new people arrive and go to work, they rent apartments and buy homes. Gradually (though slower than in recent years) the excess inventory of homes is shrinking.

The other thing to remember is Fayetteville is home to the University of Arkansas with its thousands and thousands of students and faculty, all of whom need places to live. I haven’t seen any recent studies of the effect of “trickle down economics” from the university’s presence but believe me when I say it is huge by anyone’s standards.

Nevertheless, for potential investors, I don’t recommend purchasing for the University market right now. The conventional wisdom says that rental properties in university towns are a good investment.

But in addition to all of the new apartments being built, there is also another factor to consider. The U of A just built 2 new dormitories in the past few years, which are absorbing a lot of upper classmen who might normally want to live off campus. The result is that many of the normal rentals near the University stand vacant.

On the other hand, for parents who want to purchase a condo or other unit for their student son or daughter to live in for the next few years, it’s a great time to purchase. Prices are down and there are a lot of properties to choose from. By the time you want to sell, the situation will have probably changed.

For other towns in NW Arkansas, there is more of a "normal" rental market, geared toward families, young professionals, and others. In that segment of the market for investors, there are some phenomenal deals, especially on foreclosed multi-family dwellings.

Of course, I don’t have my crystal ball handy, but keep in mind that real estate is cyclical. It IS a great time to buy….

For more information:

http://nwanews.com:80/nwat/News/72251/

Real Estate Trends Report

2008-12-18T21:53:00.004-06:00

There’s a very smart guy out there named Stefan Swanepoel who writes something called the Real Estate Trends Report each year. Recently he posted on Active Rain (a social networking site for realtors) what he felt were the 10 most important events that affected real estate during 2008. He gave me and others permission to reproduce these as long as we credit him and the 2009 Swanepoel Real Estate Trends Report. For more information on how to obtain the full report, click on the following link: www.retrends.com

In any case, he feels that the top 10 events that affected real estate during 2008 were:

1. The Bailout: September 17th

Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.

2. The Presidential Election

In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to remove the incumbent president and elect an African American, Barak Obama as president. But he takes office at a difficult time for the US economy and has some serious challenges ahead.

3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others

Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history.

4. Facing Foreclosure Frenzy

As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.

5. Home Prices Spiral Downward

The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.

6. NAR - DOJ Settlement

Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it's back to business.

7. Brokers Go Bust

Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.

8. Keeping It Short

Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.

9. ActiveRain Explodes Past 100,000 Members

As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.

10. NAR Celebrates 100 Years

In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR's centennial birthday.

How many of these events impacted you or were/are you aware of? This is the question Swanepoel asks. For realtors, all should be able to answer this question. For the general public, probably most people were unaware of a number of these items.

For more information:

http://www.retrends.com
http://www.activerain.com

3rd Quarter Skyline Report

2008-11-19T08:43:00.001-06:00

Last Friday was the Fayetteville breakfast sponsored by Arvest Bank to release the 3rd quarter Skyline report for Washington County and Northwest Arkansas. As usual Kathy Deck, director of the U of A Center for Business and Economic Research, presented the highlights of the report, but also present was Tim Yeager, professor of finance at the Sam Walton College of Business, to talk about the $700 billion “bailout” which has received much attention in the national media.

Of interest to me was his take on the Secretary of the Treasury’s redirection of funds in the TARP (Troubled Asset Relief Program—which is the official name of the bill that Congress passed) from purchasing bad assets to a capital purchase plan. Yeager is in favor of the new plan, which he says is a better use of the funds.

The original plan to purchase bad assets was a bad situation because of the difficulty of pricing the assets, according to Yeager. If the assets were priced at the current deflated values, this would represent a permanent loss on those assets. The other alternative is to wait until the assets have appreciated again.

The new plan is to purchase preferred shares of healthy banks as well as large sick banks. There would be a dividend of 5% in the first 5 years.

Yeager also presented a suggestion that Congress should prepare a new fiscal stimulus plan—“just in case.” We don’t need it now, but if such legislation were in place for the future, it would be better for assuring the financial stability of the US economic system.

Kathy Deck prefaced her remarks about the housing market in NW Arkansas with some observations about the economy. Of importance in this regard is the fact that the unemployment rate here is 4% compared to the 6.5% national employment rate. Employment opportunities are what fuel growth to the area and thus housing growth.

Employment growth here did flatten in 2006. Thus new job creation is not terrific compared with years past (e.g. 6% employment growth at the peak in July if 2005), but in comparison to the negative employment growth in the rest of the country, we’re doing OK. Current job growth in NW Arkansas is about 1% whereas jobs are being lost in the rest of the country.

I’m not much interested in commercial real estate, so I’ll focus on what’s happening in the residential and multifamily sectors.

For multifamily, the vacancy rates for 1 and 2 bedroom apartments is still very high, over 10% for the 3rd quarter of this year. The actual rate was 12.2%, the same as the rate for the 3rd quarter of 2007. According to Deck, a healthy vacancy rate is 5% or less. The rates vary by town with Bentonville the highest with a 15.7% aggregate vacancy rate (down from 17.4% in the 2nd quarter). The rate for Fayetteville was 10.9% in the 3rd quarter, and that for Springdale was 11.6%. Rogers had a decrease to 14.1%, and the lowest aggregate vacancy rate for the 3rd quarter was in Siloam Springs—10.2%.

For residential real estate the Skyline Report primarily looks at new construction. The Center for Business and Economic Research consults with planning departments of NW Arkansas communities to determine new subdivisions which have been approved and building permits which have been issued. They obtain plats and send out students to determine what’s happening on each lot in the active subdivisions. An “active” subdivision is one where construction is currently occurring or has occurred during the past year.

They classify each lot into one of 5 categories: vacant (nothing going on), housing start (slab or foundation), under construction, complete but unoccupied, and occupied.

In both Washington and Benton Counties, the number of lots in active subdivisions has increased, but the number of homes under construction has decreased. In Benton County in Q3 of 2006, there were 12,454 lots, in Q3 of 2007 there were 16,313 lots, and in Q3 of 2008 there were 16,684 lots. In Washington County, there were 8337 lots in Q3 of 2006. In Q3 of 2007 there were 10,450 lots and in Q3 of 2008 there were 10,920 lots in active subdivisions.

There were approximately 100 homes under construction in Fayetteville in Q3, and approximately 240 complete but unoccupied homes. In Springdale there were approximately 50 homes under construction and about 120 complete but unoccupied homes. The absorption rate has been down from past quarters. This means that fewer homes are being sold.

Altogether current inventory of new homes was up in all towns of NW Arkansas with 55.8 months inventory for the 3rd quarter. What this means is that at the current rate of sales, it will take 55.8 months to sell all of the new homes on the market (almost 6 years), assuming that no additional homes are built. This does not take into account existing homes which are also on the market.

One factor of importance is the existence of a lot of foreclosure properties, which are causing a continuing downward pressure on prices. According to Deck, there are 747 bank-owned properties in Benton County, up from 502 six months ago. In Washington County there are 475 bank-owned properties up from 276 six months ago.

Altogether the price of homes sold has continued to decrease in Washington County, but in Benton County, prices have shown less inclination to decline. In Benton County in the 3rd quarter of 2008 the average sales price of existing homes declined by 1.6% and in Washington County by 4.1%.

Of more concern is the fact that from May 16, 2008 to August 15, 2008, there were 1662 existing homes sold in Benton and Washington Counties. This is a decline of 17.5% from the same time period last year.

From my point of view this is a great time to purchase a home. Prices have declined significantly and there are a lot of homes on the market, both new and resale. There are a lot of great deals now.

And for those folks who are waiting for the bottom of the market, we won’t really know when the bottom occurs until after it happens. And then prices will be on their way up again.

The important factor is that real estate investment is not like the stock market. Real estate is a long term investment, not short term. If you want to purchase a home now, plan on holding it at least 5 years to realize any appreciation. So if the market goes down a little more—bottom line is that it doesn’t matter. By the time 5 years have passed, prices will be on the way up again. Real estate is cyclical.

PSST – Have I got a Cave for You!

2008-11-13T08:13:00.000-06:00

I recently heard about caves for sale in the beautiful Ozark Mountains of NW Arkansas. Might just be the answer to someone’s idea of solitude in a unique setting complete with stalactites and stalagmites. Temperatures hold steady at 59 degrees Fahrenheit year round.

There are stairs leading into two caves and electricity is already in place! I don’t think there is indoor plumbing, though.

If that’s not enough to interest you, you might want to consider the gift shop building and 29 acres of land included in the offer.

The site is called Mystic Caverns, located just a few miles south of Harrison, Arkansas (not very far from Branson, Missouri).

The asking price has been reduced from $1.2 million to $899,000.

For more information:

Ebay auction at http://tinyurl.com/6lpwvg

Mystic Caverns website: http://tinyurl.com/6lpwvg

Recession or Depression – Which is it?

2008-11-13T08:09:00.000-06:00

Recessions and depressions have been a fact of life since before statistics were kept. And, unfortunately, the United States is currently in one or the other.

A recession is defined by the National Bureau of Economic Research as a "A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."

If a recession continues long enough, it becomes a depression.

Either term is bad news for everyone: individuals, businesses, and government at all levels. The U.S. and many of the industrialized nations of the world are suffering. Unemployment is high, food prices are high, oil prices are high (though lower than a few weeks ago), and inflation is high. Retail sales are at such low levels they have caused another severe drop in the stock market. All this means pessimism and worry are high.

All told, stock markets have suffered unthinkable losses. The misery is widespread - U.S. to Europe and Iceland to Australia.

Our economy is largely based on the availability of easily obtained credit – and access to credit is practically non-existent at the present time. Manufacturers are suffering major problems in financing purchases and payrolls. Sales of homes are stagnant because individuals are finding it difficult to get mortgages. Automobile and retail sales have fallen flat because it’s tough to get a loan.

Now the federal government has stepped in to actually take partial ownership in several of the nation’s largest banks. The initial investment is $125 billion and it is supposed to stimulate interbank lending and revive the stagnant credit markets. If and how the plan will work remains to be seen.

We are in uncertain times. Some of the brightest and most experienced minds are working on all aspects of the mess we’re in. Let’s hope they find a way out soon.

But, history shows we will get through this and once again see the economy on an upward swing.

You might find it interesting to read a Wikipedia article I came across that includes a concise list of past U.S. recessions, their causes and duration:

http://en.wikipedia.org:80/wiki/List_of_recessions_in_the_United_States

Presidential Elections and the NW Arkansas Real Estate Market

2008-11-05T01:08:00.003-06:00

Normally I try not to get political, but yesterday was election day and it appears that Barack Obama will be our new president starting at the end of January. It was a hard-fought campaign.

His comments last evening about hope and trying to solve the current economic dilemma of this country were very encouraging. And John McCain's speech also referred to the necessity of all of us to work together to solve the dire situation that this country confronts.

In NW Arkansas we are kind of lucky. We have some major corporations with home offices here, and when times are tough, Walmart does well. At a time when (in the nation as a whole) jobs are being lost, there are still jobs being created in NW Arkansas, although not at the accelerated pace of the past few years. And jobs bring people to our area (also those great "best places to live" articles in major magazines).

There are homes being sold here, and the real estate market is not as dire as in other parts of the country. It's actually a great time to purchase a home--lots of great values available. But if you are a seller, you need to realize that it IS a buyer's market, and there are still many homes on the market. If you are lucky enough to actually get an offer on your home, it will probably be much less than what you were hoping for--work with it. And if you have an older home, you need to be very aggressive about pricing (i.e. update it as much as possible and/or price it much lower than you ever thought you should). Prices have come down, there are lots of foreclosures on the market, and an older home is competing with new homes, which (in many cases) are being sold at cost.

My recommendation is that if you don't need to sell right now, don't. Rent your home or hang in there until the market turns around, which it will eventually. I don't have my crystal ball handy, but I'm thinking at least wait until next year. If you purchased your home at the peak of the market, you may have to wait longer to sell without losing money.

In any case, we're finally past the election campaign, and perhaps the new spirit of optimism will help the market improve and will spur the economy. Let's hope so.

The Jones Center for Families Hosts Fall Festival

2008-10-21T20:45:00.001-05:00

The Jones Center for Families in Springdale, Arkansas is an absolute gem! Remember the old saying, “You get what you pay for?” Well, the Jones Center proves the saying wrong.

The Center welcomes everyone from NW Arkansas and the surrounding areas. Residency is not a requirement. Neither is money a requirement. There is only one requirement - all visitors must behave as ladies and gentlemen.

Virtually everything is FREE.

The Center offers an unbelievable array of activities for individuals and families. Just imagine participating at no charge in:

- Ice skating on a regulation size rink (skates provided).
- Swimming or exercising in two pools.
- Programs for all ages up to and including seniors.
- Day care while a parent is using the center.
- Fitness center containing stationary weight and cardiovascular equipment.
- 300-seat chapel for weddings, receptions, showers, etc.
- Family movies.
- A one-mile walking trail.
- Nine-hole disc golf course.
- Playground accessible to all, including handicapped.
- 30 computers including Internet access.
- More than 25 meeting rooms of all sizes for birthday parties and celebrations or non-profit business groups.

As if all that were not enough, the Jones Center also hosts activities throughout the year such as the Fall Festival coming up next Saturday, October 26. At least 8,000 children and parents arrive annually for fun, music, entertainment, physical activities, arts and crafts, and food – at no cost.

There are also special programs to keep kids busy during spring and winter breaks. During the summer months, free concerts are held on the lawn.

You can also take advantage of various educational opportunities, such smoking cessation, safe baby-sitting instruction, and preparing your child to succeed.

The Jones Center for Families has been an important part of NW Arkansas since its inception in 1996. I really cannot paint a complete picture in this short space of everything it offers to the public. Seeing is believing - and I encourage you to do just that.

The Jones Center has always shone like a beacon. If you haven’t been there yet, check it out! In these tough economic times, it might be just what you and your family are looking for.

For more information:

http://www.jonesnet.org/index.html

Chili Cook-off Benefit for Fayetteville Meals on Wheels

2008-10-17T18:54:00.002-05:00

On Monday, October 20 (next Monday evening) between 6:00 and 8:00 p.m. the 4th Annual Keller Williams Chili Cook-off will occur at the Keller Williams offices at 2418 E. Joyce Blvd. Proceeds will go to benefit the Fayetteville Meals on Wheels Program. Almost 20 cooks will be competing, so whether you like your chili hot and spicy or mild or somewhere between, there should be something for everyone’s taste. Adult tickets are $5.00 and kids are $2.00. All you can eat with all of the fixings. Hope to see you there.

FYI

2008-10-17T18:52:00.001-05:00

A couple of interesting tidbits for those who might have deep pockets, despite the ailing economy, and have special needs or interests.

Britney Spears’ home is on the market for a mere $7.9M. Click the following link for pictures and information.

http://www.sothebysrealty.com/PropertyDetails.aspx?R=104140528&WT.mc_id=Trulia

And for those old enough to remember Roy Rogers, his ranch has been renovated and updated and is now on the market. No price given, but if you click on the following link you can get more detailed information.

http://rismedia.com/wp/2008-10-16/fridays-featured-listing-renowned-roy-rogers-double-r-bar-ranch/

Bella Vista, Arkansas – In Top 10 Healthy Places to Retire

2008-10-14T10:31:00.001-05:00

U.S. News and World Report editors have selected beautiful Bella Vista, Arkansas as one of the top 10 healthy places to retire.

Not long ago Bella Vista was a quiet little village nestled in the rolling hills of the Ozarks, just south of Missouri. Now it has grown up and become a city of more than 24,000 people with more arriving each year.

And why not? Add recreational facilities, lakes, golf, tennis, swimming and much more to natural beauty and clean air and the result is Bella Vista.

Homes are very affordable by anyone’s standards and neighborhoods are well maintained. If you are looking for your own piece of the good life, take a look at Bella Vista.

For more information:

http://www.usnews.com/articles/business/best-places-to-retire/2008/09/18/americas-best-healthy-places-to-retire.html

Search for homes:

http://www.nwarkansashomesearch.com/
http://www.findfayettevillehomes.com/

Property Taxes are Due

2008-10-04T10:28:00.001-05:00

Just a quick reminder that the deadline to pay property taxes is October 10.

Many home owners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. When tax bills are sent out in the spring, the bank pays the property tax. If this is your situation, you can relax since your property taxes have already been paid.But if your bank is not paying your property taxes as part of your mortgage and you didn't pay them last spring when the bills were sent out, then you only have a few more days to pay them. And don’t forget those pesky personal property taxes on cars, trucks, boats, etc. Those taxes are also due now, if you didn't already pay them when you got your bill last spring.

There was an option to pay taxes in three payments so if you took advantage of that, don’t forget the third and final payment is due October 10.

Late payments incur an automatic 10% penalty plus interest.

In addition to paying in person or mailing a check, Washington County offers an ePayment Service. You can pay with a Visa, MasterCard or Discover credit card and the funds will be electronically deducted from your checking account. The important thing to note if using this service is a processing fee will also be deducted. The county website states, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”

As best I could determine, Benton County does not offer an ePayment Service but you can pay over the telephone, in person, or snail-mail.

The web addresses for Washington and Benton counties are:

http://www.co.washington.ar.us
http://www.co.benton.ar.us

Foreclosures in NW Arkansas

2008-09-21T14:39:00.002-05:00

In an effort to bring you current information regarding foreclosures in Benton and Washington Counties, I’ve read enough statistics to make my head spin. I think it all comes down to the old saying, “everything is relative.”

Overall, the Arkansas foreclosure rate ranks right about in the middle. There are 26 states with higher foreclosures rates. The national average is one foreclosure for every 416 homes but the Arkansas rate is ‘only’ one for every 1099 homes.

Four states make everything else look good. Nevada is #1, California #2, Arizona #3, and Florida #4. It’s hard to imagine that 1 in every 91 homes in Nevada has received a foreclosure notice!

In Benton and Washington Counties, the July 2008 rate was closer to the national average - Benton County one for every 418 homes; Washington County – one for every 404 homes.

Arvest Bank took an innovative step to sell approximately 170 properties it had foreclosed on by holding one big auction in early August. Reserves were placed on all but five properties, meaning the bank would have final decision on whether to accept the offer. Arvest has not disclosed final results but in some cases potential buyers and the bank will have an opportunity to renegotiate terms.

Overall, I think it was both a bold move and a good idea. Nothing of that size has been done previously in NW Arkansas or perhaps all of Arkansas. Banks have become saddled with property they never wanted to own and they need to get them off their books.

Foreclosed properties drive down the price of surrounding homes. The sooner they are all sold, the sooner the market can begin to normalize.

For more information:

http://www.nwarktimes.com/adg/News/232968

http://www.nwarktimes.com/adg/Business_Matters/233953

http://www.nwarktimes.com/adg/News/233166

http://www.nwarktimes.com/adg/Business/233671

http://www.nwaonline.net/articles/2008/08/19/business/082008foreclosures.txt

http://www.nwarktimes.com/adg/National/236465
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=5163&accnt=64847#statetable

Bikes, Blues and BBQ in Fayetteville, Arkansas

2008-09-13T15:12:00.000-05:00

It’s that time of year again. Time when a few hundred thousand people will descend on Fayetteville for the 9th Annual Bikes, Blues and BBQ Motorcycle Rally September 24-27.

BB & BBQ bills itself as the largest charitable bike rally in the United States! Last year more than $100,000 was donated to local charities. The rally is self-funded and does not receive any government funding.

BB & BBQ is fun for the whole family. There are the bikes, of course, which are always a sight to see. Entertainment is on various stages afternoons and evenings - much of it free. Plus you won’t want to miss an opportunity to taste some serious cooking during the barbecue cook off competition.

The raffle items this year include a Harley-Davidson Rocker C motorcycle.

Fayetteville Firefighters Association will again host the Poker Run which last year raised almost $9,000 for charity.

Y’all come!

For more information:

http://www.bikesbluesandbbq.org/

No Matter How You Look at it, NW Arkansas is a Great Place to Live!

2008-09-08T12:09:00.003-05:00

As the days start getting a little cooler and we move into fall, one of my favorite times of year,
I thought I’d mention that NW Arkansas has been selected yet again as being in the top-ten best places to live, raise a family, work, and retire. Kiplinger Magazine recently published two articles highlighting Fayetteville and the surrounding area.

Of course, Kiplinger isn’t the only authority on the subject. U.S. News & World Report, Sperling’s Best Places, Forbes and others have all placed NW Arkansas in the top ten of their recent surveys. My family and I moved here 15 years ago and we continue to be glad we did.

NW Arkansas has a great reputation, and rightfully so.

Housing is very affordable. Cost of living is low compared to most places. On a scale where 100 is considered ‘average’ for the country, NW Arkansas comes in at a very respectable 90.

Air is clear and clean. The natural beauty of the Ozarks is everywhere. There’s a big push to go ‘green.’ The area is attracting businesses and industries that are not only non-polluting but that also are in the sustainability business. (Think consulting, water purification, packaging, electronics and lighting.)

The climate is moderate during all four seasons. Springtime is gorgeous with flowering dogwoods and redbuds everywhere. Summer is not bad by most standards. As I write this (in mid-August) my windows are open and a gentle breeze is coming in. Autumn is more beautiful here than outsiders imagine. Gold and red leaves color the rolling hillsides, some years more spectacular than others. Winters are generally mild - some snow that usually doesn’t hang around more than a few days. I grew up in northern Minnesota where temperatures of minus 30 degrees are common so I think it’s positively balmy here. I have friends who moved here in 2004 and they have yet to pick up a snow shovel. Of course there are days in summer that I wish were cooler and winter days I wish were warmer, but I’ve said that no matter where I lived.)

Even in these tough times, the economy continues to expand. Unemployment is low, falling one half a percentage point to 4.5% in Arkansas for July 2008. That’s the lowest level since April 2001, according to the U. S. Bureau of Labor Statistics.

Health care availability is excellent and quality is high.

People are friendly and polite.

The University of Arkansas in Fayetteville offers all types of sporting events and free classes to people over age 65.

Sports and recreational activities abound. There’s Beaver Lake with more than 400 miles of shoreline for swimming, boating, and fishing. There are festivals such as Bikes, Blues and BBQ, farmers’ markets, world-class golf, polo, minor-league baseball and many more activities every weekend.

Broadway shows and major stars appear regularly at the Walton Arts Center in Fayetteville.

But mainly it’s the beauty of the Ozarks coupled with affordable housing that makes NW Arkansas so appealing.

Prices have come down in the past year making housing even more affordable. At the present time, you can buy a brand new 3 bedroom, 2 bath, brick home for less than $150,000. There are previously owned homes for less. Just about anything you’ve dreamed about is available at great prices.

Go to my website http://www.judyluna.com/ and click on “Search for Homes” to do your own search. As always, if I can be of help, don’t hesitate to call me at (479) 966-0435.

Two notes worth mentioning:
The Chamber of Commerce did not ask me to write this article !
The population figure of 419,455 mentioned at http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html includes all of Washington, Benton, and Carroll counties in NW Arkansas plus McDonald County in SW Missouri. The actual population of the City of Fayetteville is approximately 68,000.

For more information:

http://www.judyluna.com/

http://www.kiplinger.com/features/archives/2008/07/real-estate-prices-in-our-best-cities-2008.html?kipad_id=47 (where you can compare housing costs in different price ranges)

http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html

http://www.arkansas.com/city-listings/city_detail.aspx?city=War+Eagle

First Time Homebuyer Tax Credit Explained

2008-08-30T10:07:00.000-05:00

There has been so much talk about the recently enacted “Housing and Economic Recovery Act of 2008” and its numerous, complicated provisions that I thought I’d take a few moments to summarize the part you are probably most interested in – the First Time Homebuyer Tax Credit.

You are considered a first-time homebuyer if you have not had any ownership interest in a home in the 3-year period preceding date of purchase.

Closing date of the home must be between April 9, 2008 and June 30, 2009.

The tax credit is 10% of the purchase price up to a maximum credit of $7,500.

A single person with income up to $75,000 qualifies for the full credit. Income between $75,000 and $95,000 qualifies for a prorated portion of the $7,500 credit.

Married couples with income up to $150,000 qualify for the full credit. Income between $150,000 and $170,000 qualifies for a prorated portion of the $7,500 credit.

The credit will be applied against income tax liability. When the tax return is compiled in the usual manner, the credit would be used to lower tax liability dollar for dollar. For example, if total tax liability was $9,000, the credit would reduce the liability to $1,500. This has nothing to do with how much withholding you may have already paid. If your tax liability was $9,000 and you had already paid in $9,000 through withholding, you would receive a check for $7,500.

If total tax liability was $1,000, and you had not paid any withholding, the excess credit of $6,500 would be refunded to the taxpayer.

There are no provisions to get the credit before filing the income tax return in 2009. However, a homebuyer who qualifies for the credit could immediately reduce his withholding at his place of employment (or reduce estimated payments to IRS).

But there is a catch. It’s not “free money.”

The credit has been referred to as an interest-free loan, and with good reason. The credit must actually be repaid at the rate of 6.67% ($502.50) per year for 15 years, beginning with the filing of the 2010 tax return in spring of 2011. No interest will be charged. Let’s say a taxpayer was due a refund of $1,000 on his 2010 return. His refund would be reduced to $497.50 after repaying $502.50).

If the home was sold at a profit before the 15-year payback period ended, the unpaid balance would be deducted from the profit before the proceeds were paid to the seller. If the home was sold at a loss, the balance of the payback would be forgiven.

If the taxpayer dies before paying back all the credit, the unpaid balance would be forgiven.

IMPORTANT NOTE: This is my interpretation of the basic provisions of the Homebuyer Tax Credit. I have tried to simplify things to give a picture of what is now available but I give no guarantees. There are many complicated provisions I haven’t touched upon. As with most new laws, many details will need to be worked out, defined, and applied. You should check with your tax preparer for further provisions of the law.

And whether it’s worth it for you to apply for the credit will depend on your personal financial situation. If you need money to tide you over these tough economic times, it may be worth your while. Just keep in mind that you do have to pay it back in future years.

For more information:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

It’s Back to Square 1 for Fayetteville High School

2008-08-23T08:25:00.000-05:00

University of Arkansas has withdrawn its offer to purchase the Fayetteville High School. High school officials were taken off guard and were extremely surprised by the move.

The final version of $50 million offer would probably have contained some provisions for the school district to lease back the property while waiting for a new high school to be built. Now, all that is off the table and the district is back to square one.

It’s been a long, convoluted process to get back to the starting point. Space and time do not permit much detail here, but a brief summary will help:

· After lengthy deliberations, extensive research, committee meetings, and input from the public, Fayetteville School Board decided to have one high school grades 9-12.

· A new high school should be built as opposed to remodeling the existing school.

The best location would be the “Morningside” property in south Fayetteville.

The current 40-acre high school campus would be offered to University of Arkansas for $59 million, a sum that fell between independent appraisals conducted by both entities. Deadline for response to the offer was July 1, 2008.

U of A countered on June 6 with its offer of $50 million. The offer did not contain a deadline.

A group of independent investors stepped forward to request a 60-day option on the property. If granted, the option would preclude any other sale during that time. If the investors decided to buy the property, they would pay $60 million.

The school district took no action on the option offer. Subsequently, the investors withdrew their request.

On August 21, citing a decision to not leave the offer in limbo any longer, U of A officials withdrew their $50 million offer to purchase the existing campus.

It’s possible the U of A may reconsider purchasing the property at some point in the future.

Stay tuned for the next move.

For more information:

http://arkansasbusiness.com:80/article.aspx?lID=84&sID=85&ms=86&cID=Z&aID=107448.53153.119574

http://www.nwaonline.net/articles/2008/08/22/news/082208fzuawithdraws.txt

http://www.nwarktimes.com/adg/News/234962/

http://www.nwarktimes.com/nwat/News/68346/