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Don’t lose this phone number: 479-271-1037. If you can get through the busy signals, it will connect you to the Benton County Assessor’s office where you can make an appointment to meet with the Equalization Board if you feel your property has been assessed too high.
Property owners who are unable to get through to the Assessor's may stop by the office in the Benton County Administration Building, fax a letter of request to (479 ) 271-1073 or mail a letter to the attention of Cathy Lee, scheduler for the Equalization Board, 215 E. Central Ave., Bentonville, AR 72712.
All letters requesting an appointment with the board should include the property owner's name, address, phone number and parcel number. If residents chose to mail a letter requesting a meeting, they should send the letter via certified mail.
Keep in mind you must contact the assessor’s office before August 20. The board will meet from August 1 to October 1 to hear why you believe your property value is incorrect. Bring along some evidence such as an independent appraisal of the property or a new mortgage on the property.
The board can adjust the property values for three reasons:
--The assessment is unfair compared with other lands of the same kind, similarly situated.
--It is appraised higher than neighboring properties with the same uses, size, materials and conditions.
--The assessment is clearly erroneous.
--The assessment is manifestly excessive.
On the one hand, we can’t point too hard at the assessor’s office for the high numbers. Assessments must be done every third year but it takes time to assess all the parcels. People must go out and physically inspect the properties. Things were still flying high during much of 2007 when the appraisals were being conducted. It was late 2007 and into 2008 when things started spiraling downhill.
On the other hand, however, I was distressed to read that when one property value has been readjusted, all similarly situated property should automatically be re-examined and that part of the law has been ignored.
Many Benton County residents have become galvanized to fight the increased appraisals. On Monday night the NW Arkansas Property Rights Association hosted a town meeting to inform residents of their rights and to help them get some answers. Present at the meeting were County Assessor Bill Moutray; Sen. Kim Hendren, R-Gravette; Larry Kelly, a local real-estate agent; Benton County Appraiser Charles Hudson Jr.; and Benton County Clerk Mary Lou Slinkard.
Now that property owner’s concerns are being brought to the forefront, Benton County officials will hopefully be taking a more proactive approach to protecting owner’s rights.
For more information:
My blog postings dated July 12 and July 29 - http://nwarealestateblog.blogspot.com/
http://nwanews.com:80/bcdr/News/64125/
http://nwanews.com/bcdr/News/64436/
Wednesday, August 06, 2008
Monday, July 28, 2008
Market Report for June 2008, Northwest Arkansas Real Estate
According to a recent report from the National Association of Realtors®, existing home sales in June in the US are down by 2.6% compared to May and down 15.5% compared to June of last year. For all home sales, single-family home sales declined 3.2% to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8% below the 5.01 million-unit pace in June 2007.
Total inventory in June was up by 0.2%, which represents an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May. The median price for June was $215,100 in June, down 6.1% from a year ago when the median was $229,000.
So how does NW Arkansas compare to statistics for the country? It’s different for each town, and also differs according to price range. Following are some statistics for the area with global numbers for each town (doesn’t take into account price range).
No. of Sales Median Price Av. DOM Supply (in Mo.)
Bentonville
June 2008
78 $197,950 147 20.18
June 2007
87 $196,000 140 11.70
Fayetteville
June 2008
109 $168,500 140 14.96
June 2007
135 $178,500 117 10.97
Rogers
June 2008
84 $166,500 167 18.01
June 2007
125 $178,500 157 13.64
Springdale
June 2008
82 $143,000 140 15.36
June 2007
108 $139,900 128 11.58
Bella Vista
June 2008
83 $155,000 150 13.15
June 2007
108 $162,450 135 10.72
So what do these numbers mean? In terms of months supply of homes, all of the NW Arkansas towns are above the national average, with Rogers and Bentonville significantly so. In fact, the Bentonville supply of homes on the market is almost double what is was last year.
In all cases, the Days on Market (DOM) is higher than it was last year, which means that homes are taking longer to sell. In all of the NW Arkansas towns the number of homes sold in June of this year is down, compared to June of last year. However, unlike the national statistics, more homes were sold in June of this year in all NW Arkansas towns than in May (statistics not reproduced here).
The median price for homes in all of the NW Arkansas towns is much lower than the national average. This means that NW Arkansas is still a very affordable place to live. Springdale and Bella Vista are the most affordable with a significant supply of homes in price ranges within reach of “average” folks. However, the median price range of homes in Springdale and Bentonville in June of this year is higher than that of June of 2007.
I should mention that median price is not necessarily the best indicator of whether prices are coming down or not. However, that is the best statistic we Realtors® have to work with. The median price is that price at which half of the homes sold are more expensive than the median price and half are less expensive.
From practical experience, I am finding that many offers are coming in at substantially lower prices than the list price. Buyers seem to think that all sellers are desperate, which is not necessarily the case. In addition, buyers are asking for more in the way of amenities (i.e. throw in blinds, fences, etc.) on new homes, and on re-sale homes they are asking for closing cost help and down payment assistance.
On the other hand, there are also many bank-owned homes (foreclosures) on the market. This has brought prices down, when considered from a statistical point of view. These homes are competing with “normal” homes for sale and making it difficult for the latter to sell at prices that they would usually bring.
For those who are worried about the so-called "declining" value of their home, the thing to remember is that a home purchase is traditionally a long-term investment. Real estate is cyclical, and what comes down will eventually go up. For folks who will be in their homes over a longer period of time, not to worry. These numbers will change and the market will improve. For sellers that don't have to sell right now, my recommendation is not to put your home on the market; wait a year or two.
Bottom line is that there are a lot of homes on the market now in NW Arkansas. In “realtor-speak” we have a “large inventory.” What this means for sellers who must sell now is that they must price their homes competitively for them even to be looked at, let alone sold. For buyers, it is a golden opportunity—lots to choose from at lower prices. Now is the time to buy, especially since interest rates are still low.
For more information:
http://rismedia.com/wp/2008-07-24/existing-home-sales-down-in-june/
http://www.realtor.org/research/research/ehsdata
http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june
Total inventory in June was up by 0.2%, which represents an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May. The median price for June was $215,100 in June, down 6.1% from a year ago when the median was $229,000.
So how does NW Arkansas compare to statistics for the country? It’s different for each town, and also differs according to price range. Following are some statistics for the area with global numbers for each town (doesn’t take into account price range).
No. of Sales Median Price Av. DOM Supply (in Mo.)
Bentonville
June 2008
78 $197,950 147 20.18
June 2007
87 $196,000 140 11.70
Fayetteville
June 2008
109 $168,500 140 14.96
June 2007
135 $178,500 117 10.97
Rogers
June 2008
84 $166,500 167 18.01
June 2007
125 $178,500 157 13.64
Springdale
June 2008
82 $143,000 140 15.36
June 2007
108 $139,900 128 11.58
Bella Vista
June 2008
83 $155,000 150 13.15
June 2007
108 $162,450 135 10.72
So what do these numbers mean? In terms of months supply of homes, all of the NW Arkansas towns are above the national average, with Rogers and Bentonville significantly so. In fact, the Bentonville supply of homes on the market is almost double what is was last year.
In all cases, the Days on Market (DOM) is higher than it was last year, which means that homes are taking longer to sell. In all of the NW Arkansas towns the number of homes sold in June of this year is down, compared to June of last year. However, unlike the national statistics, more homes were sold in June of this year in all NW Arkansas towns than in May (statistics not reproduced here).
The median price for homes in all of the NW Arkansas towns is much lower than the national average. This means that NW Arkansas is still a very affordable place to live. Springdale and Bella Vista are the most affordable with a significant supply of homes in price ranges within reach of “average” folks. However, the median price range of homes in Springdale and Bentonville in June of this year is higher than that of June of 2007.
I should mention that median price is not necessarily the best indicator of whether prices are coming down or not. However, that is the best statistic we Realtors® have to work with. The median price is that price at which half of the homes sold are more expensive than the median price and half are less expensive.
From practical experience, I am finding that many offers are coming in at substantially lower prices than the list price. Buyers seem to think that all sellers are desperate, which is not necessarily the case. In addition, buyers are asking for more in the way of amenities (i.e. throw in blinds, fences, etc.) on new homes, and on re-sale homes they are asking for closing cost help and down payment assistance.
On the other hand, there are also many bank-owned homes (foreclosures) on the market. This has brought prices down, when considered from a statistical point of view. These homes are competing with “normal” homes for sale and making it difficult for the latter to sell at prices that they would usually bring.
For those who are worried about the so-called "declining" value of their home, the thing to remember is that a home purchase is traditionally a long-term investment. Real estate is cyclical, and what comes down will eventually go up. For folks who will be in their homes over a longer period of time, not to worry. These numbers will change and the market will improve. For sellers that don't have to sell right now, my recommendation is not to put your home on the market; wait a year or two.
Bottom line is that there are a lot of homes on the market now in NW Arkansas. In “realtor-speak” we have a “large inventory.” What this means for sellers who must sell now is that they must price their homes competitively for them even to be looked at, let alone sold. For buyers, it is a golden opportunity—lots to choose from at lower prices. Now is the time to buy, especially since interest rates are still low.
For more information:
http://rismedia.com/wp/2008-07-24/existing-home-sales-down-in-june/
http://www.realtor.org/research/research/ehsdata
http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june
Saturday, July 19, 2008
Benton County Reappraisal Process is Complete
I no sooner posted the article (see blog posted July 12) than Benton County completed its appraisal process for property taxes.
Values are up – way up in some cases – and people are not happy. The total value of property in Benton County’ increased from $2.9 billion in 2005 to more than $4 billion this year. That includes increases in value of existing properties as well as new construction.
What many folks haven’t taken in to consideration is the fact that the last reappraisal was in 2005 and values have certainly risen since then, although not at the double-digit rates of the past several years. Instead, they seem to be looking only at the past year or so when values started coming down from their all-time high.
There is so much bad news these days it’s easy to get caught up in the doom and gloom. However, NW Arkansas is still growing and adding jobs, though not as rapidly as in the past.
As I’ve said before, real estate is local. You can’t look at California (or Florida or Nevada), for instance, and assume the same thing is happening here.
Arkansas law does provide important benefits to homeowners.
The increase in assessed value on a person’s homestead is capped at 5% per year. Thus, if the assessed valuation of the owner’s personal residence increased 9% over 2005 value, the 2009 value would be capped at 5%. It would be 2010 before the remaining 4% took effect.
Another advantage helps homeowners age 65 or older and those considered disabled as defined by Social Security Administration. It prevents the taxable assessment on an owner’s personal residence from ever increasing due to a reappraisal. Taxes can go up if improvements are made to the property or if millage rates go up, but not because of periodic increase in value.
In other words, all you have to do is notify the county assessor once you reach age 65 or become disabled and your taxable assessed valuation will be frozen forever (at least as long as you live in the same house).
(I’ve included below links to the application forms for both Benton and Washington counties.)
The new assessments will take effect January 1, 2009 with taxes due October 10, 2009.
Taxpayers can appeal the new valuation to the Benton County Equalization Board. You must make an appointment before August 20.
For more information:
Benton County Assessor’s office: 479-271-1037
http://www.nwanews.com:80/adg/News/231396/
http://www.co.benton.ar.us/Assessor/HomesteadApp.pdf
http://www.co.washington.ar.us/Assessor/Am79.htm
Values are up – way up in some cases – and people are not happy. The total value of property in Benton County’ increased from $2.9 billion in 2005 to more than $4 billion this year. That includes increases in value of existing properties as well as new construction.
What many folks haven’t taken in to consideration is the fact that the last reappraisal was in 2005 and values have certainly risen since then, although not at the double-digit rates of the past several years. Instead, they seem to be looking only at the past year or so when values started coming down from their all-time high.
There is so much bad news these days it’s easy to get caught up in the doom and gloom. However, NW Arkansas is still growing and adding jobs, though not as rapidly as in the past.
As I’ve said before, real estate is local. You can’t look at California (or Florida or Nevada), for instance, and assume the same thing is happening here.
Arkansas law does provide important benefits to homeowners.
The increase in assessed value on a person’s homestead is capped at 5% per year. Thus, if the assessed valuation of the owner’s personal residence increased 9% over 2005 value, the 2009 value would be capped at 5%. It would be 2010 before the remaining 4% took effect.
Another advantage helps homeowners age 65 or older and those considered disabled as defined by Social Security Administration. It prevents the taxable assessment on an owner’s personal residence from ever increasing due to a reappraisal. Taxes can go up if improvements are made to the property or if millage rates go up, but not because of periodic increase in value.
In other words, all you have to do is notify the county assessor once you reach age 65 or become disabled and your taxable assessed valuation will be frozen forever (at least as long as you live in the same house).
(I’ve included below links to the application forms for both Benton and Washington counties.)
The new assessments will take effect January 1, 2009 with taxes due October 10, 2009.
Taxpayers can appeal the new valuation to the Benton County Equalization Board. You must make an appointment before August 20.
For more information:
Benton County Assessor’s office: 479-271-1037
http://www.nwanews.com:80/adg/News/231396/
http://www.co.benton.ar.us/Assessor/HomesteadApp.pdf
http://www.co.washington.ar.us/Assessor/Am79.htm
Saturday, July 12, 2008
Is Your Home Over-Appraised?
By law in Arkansas, each county must appraise all real estate every three years. When values are increasing, as they have been in NW Arkansas for many years, that timetable actually gives a break to property owners. A home appraised at $125,000 in 2004 stayed at that appraised value in years 2005 and 2006 even as the actual value increased to $150,000 or more.
Washington County completed its reappraisals in 2007, which in retrospect appears to be when property values hit the top.
Since then, some properties have actually lost value. I know because my old home, which I just sold in May, was appraised by the county for tax purposes at $195,000. I had it listed in the MLS for $179,900. It sold for slightly less.
Speculators have gone elsewhere looking for the next boom and left behind empty homes and empty lots. Builders desperate to get out from under their construction loans are pricing homes on the lower end of any price ranges of recently sold similar homes.
With the next appraisal in Washington County not set to occur until 2010, the county assessor has taken the unusual step of asking and receiving permission of the county’s Equalization Board to examine the situation.
There are more than 90,000 properties in the county and not all properties will be reexamined.
The target will most likely be subdivisions with homes costing more than $200,000. The plan is to compare homes sold in those subdivisions with the appraised value assigned in the same neighborhood on Jan. 1, 2007.
For example, if a home appraised at $200,000 actually sold for $190,000 and that pattern is repeated on several homes in the neighborhood, the appraised value would drop $10,000. A reduction of that amount would decrease property taxes by roughly $100. (Annual property taxes are about 1 percent of a home’s value.)
In my opinion, this is the fair thing to do and I commend Washington County for taking the high road. Things would probably work themselves out at the next scheduled reappraisals in 2010, but meanwhile some people would be paying more than their fair share of taxes.
Incidentally, properties in Benton County are currently undergoing their scheduled reappraisals, which will set property values beginning Jan. 1, 2009. We would expect those values to be indicative of current values.
For more information:
http://www.nwanews.com:80/adg/News/230807/
http://www.nwaonline.net/articles/2008/07/10/columns/brenda_blagg/071108blagg.txt
Washington County completed its reappraisals in 2007, which in retrospect appears to be when property values hit the top.
Since then, some properties have actually lost value. I know because my old home, which I just sold in May, was appraised by the county for tax purposes at $195,000. I had it listed in the MLS for $179,900. It sold for slightly less.
Speculators have gone elsewhere looking for the next boom and left behind empty homes and empty lots. Builders desperate to get out from under their construction loans are pricing homes on the lower end of any price ranges of recently sold similar homes.
With the next appraisal in Washington County not set to occur until 2010, the county assessor has taken the unusual step of asking and receiving permission of the county’s Equalization Board to examine the situation.
There are more than 90,000 properties in the county and not all properties will be reexamined.
The target will most likely be subdivisions with homes costing more than $200,000. The plan is to compare homes sold in those subdivisions with the appraised value assigned in the same neighborhood on Jan. 1, 2007.
For example, if a home appraised at $200,000 actually sold for $190,000 and that pattern is repeated on several homes in the neighborhood, the appraised value would drop $10,000. A reduction of that amount would decrease property taxes by roughly $100. (Annual property taxes are about 1 percent of a home’s value.)
In my opinion, this is the fair thing to do and I commend Washington County for taking the high road. Things would probably work themselves out at the next scheduled reappraisals in 2010, but meanwhile some people would be paying more than their fair share of taxes.
Incidentally, properties in Benton County are currently undergoing their scheduled reappraisals, which will set property values beginning Jan. 1, 2009. We would expect those values to be indicative of current values.
For more information:
http://www.nwanews.com:80/adg/News/230807/
http://www.nwaonline.net/articles/2008/07/10/columns/brenda_blagg/071108blagg.txt
Friday, July 04, 2008
Fayetteville School Board Receives $60 million Option for High School Campus
As I mentioned in my blog June 8, Fayetteville School Board offered to sell its 40-acre high school campus to University of Arkansas for $59 million. U of A officials responded with a counter offer of $50 million. The school board took no further action, deciding more time was needed to consider terms of U of A’s offer.
Now a limited liability corporation has come forward with a request for a 90-day option on the property. The usual reason for an option is to allow time to evaluate the property and consider conditions of sale.
If the board accepts the option, it could not sell the property to anyone else during that time. The corporation would have the exclusive right to buy the property for $60 million, a $10 million increase over U of A’s offer.
However, the corporation would not be obligated to go through with the purchase.
As of this writing, the school board has not taken any action on the latest offer, citing a need for more information.
U of A was caught offguard by the corporation’s request. It will be interesting to see how the university responds in light of the fact that its offer was already $9 million short of the asking price.
So now another opportunity of sorts is on the table. $60 million over $50 million means $10 million taxpayers would not have to come up with to build a new high school – if everything falls into place and the corporation does indeed buy the campus. At this point, that’s a big IF.
Do I hear $70 million? Anyone?
For more information:
http://www.nwaonline.net/articles/2008/06/26/news/062708fzfayschoolbrd.txt
http://www.nwarktimes.com/nwat/News/66578/
Now a limited liability corporation has come forward with a request for a 90-day option on the property. The usual reason for an option is to allow time to evaluate the property and consider conditions of sale.
If the board accepts the option, it could not sell the property to anyone else during that time. The corporation would have the exclusive right to buy the property for $60 million, a $10 million increase over U of A’s offer.
However, the corporation would not be obligated to go through with the purchase.
As of this writing, the school board has not taken any action on the latest offer, citing a need for more information.
U of A was caught offguard by the corporation’s request. It will be interesting to see how the university responds in light of the fact that its offer was already $9 million short of the asking price.
So now another opportunity of sorts is on the table. $60 million over $50 million means $10 million taxpayers would not have to come up with to build a new high school – if everything falls into place and the corporation does indeed buy the campus. At this point, that’s a big IF.
Do I hear $70 million? Anyone?
For more information:
http://www.nwaonline.net/articles/2008/06/26/news/062708fzfayschoolbrd.txt
http://www.nwarktimes.com/nwat/News/66578/
Sunday, June 22, 2008
Now is a Great Time to Purchase a Home in NW Arkansas
It is a great time to purchase a home in NW Arkansas and here’s why:
The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.
Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.
Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.
Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.
Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.
A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.
Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.
Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.
Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.
Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.
Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)
Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.
The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.
All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.
For more information:
http://www.buynwanow.com/
The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.
Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.
Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.
Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.
Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.
A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.
Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.
Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.
Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.
Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.
Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)
Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.
The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.
All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.
For more information:
http://www.buynwanow.com/
Clean Up or Pay Up
Bella Vista is the latest city in Northwest Arkansas to pass an ordinance to control unsightly and unsanitary conditions. (Bella Vista became a city only 18 months ago – before that the property owners association enforced similar rules.)
Bella Vista’s recent action means all NW Arkansas cities now have laws on the books that cover such things as front yards that have been taken over by weeds, junk, or inoperable vehicles.
With the number of unsold, unoccupied homes increasing the number of complaints has also gone up. No one wants to live next door or even a few houses down the street from an eyesore. It’s not just a matter of aesthetics; overgrown yards become havens for insects, rodents and slithery creatures that few people want around.
Cities usually enforce their regulations beginning with a warning letter that states a time limit to correct the problem. Citations and fines come after that. Sometimes a city will have the necessary work done and bill the property owner. The final straw is a lien placed on the property.
For more information:
http://www.nwaonline.net/articles/2008/05/28/news/052908bzbvregulate.txt
Bella Vista’s recent action means all NW Arkansas cities now have laws on the books that cover such things as front yards that have been taken over by weeds, junk, or inoperable vehicles.
With the number of unsold, unoccupied homes increasing the number of complaints has also gone up. No one wants to live next door or even a few houses down the street from an eyesore. It’s not just a matter of aesthetics; overgrown yards become havens for insects, rodents and slithery creatures that few people want around.
Cities usually enforce their regulations beginning with a warning letter that states a time limit to correct the problem. Citations and fines come after that. Sometimes a city will have the necessary work done and bill the property owner. The final straw is a lien placed on the property.
For more information:
http://www.nwaonline.net/articles/2008/05/28/news/052908bzbvregulate.txt
Saturday, June 14, 2008
Alignment Plans Finalized for U. S. Hwy. 412 Bypass
Arkansas Highway and Transportation Department unveiled June 4 the proposed final alignment for the U. S. Hwy. 412 northern bypass around Springdale. This project has been talked about since 1996 and may now be one step closer to reality. The bypass would begin west of Tontitown and end east of Sonora (west of the White River bridge). An entrance/exit at U.S. 71B would be the only other access.
While the alignment seems closer to finalization, the subject of financing is far from solved. Current estimates are $415 million to build the bypass – and that doesn’t include an estimated $80 million to purchase land for right of way.
In summer of 2007, estimates were $310 million for construction and $60 million for right-of-way acquisitions. The increase costs are due to inflation, increased constructions costs the fact that some of the land has been developed recently.
The Highway Department has a total of $27 million available to begin purchasing right of way and expects to start that phase before the end of this year.
Who knows when and where the rest of the money will come from. Requests to the state legislature have fallen on deaf ears.
Anyone driving the section of U. S. Hwy 412 (Sunset Avenue) in Springdale is cognizant of the fact that a bypass is sorely needed. Tractor-trailer rigs are bumper to bumper alongside cars trying to access the many businesses lining the road. There are all kinds of businesses lining the road; motels and restaurants, supermarkets, gas stations, pizzerias, second-hand stores, car lots, shoe stores, ice cream parlors, movie rental stores, and lots and lots of traffic lights. Delays and frustration are the norm.
The need for the bypass exists – the money doesn’t.
For more information:
http://www.nwaonline.net/articles/2008/06/04/news/060408fy412bypass.txt
http://www.nwarktimes.com/adg/News/227680/
While the alignment seems closer to finalization, the subject of financing is far from solved. Current estimates are $415 million to build the bypass – and that doesn’t include an estimated $80 million to purchase land for right of way.
In summer of 2007, estimates were $310 million for construction and $60 million for right-of-way acquisitions. The increase costs are due to inflation, increased constructions costs the fact that some of the land has been developed recently.
The Highway Department has a total of $27 million available to begin purchasing right of way and expects to start that phase before the end of this year.
Who knows when and where the rest of the money will come from. Requests to the state legislature have fallen on deaf ears.
Anyone driving the section of U. S. Hwy 412 (Sunset Avenue) in Springdale is cognizant of the fact that a bypass is sorely needed. Tractor-trailer rigs are bumper to bumper alongside cars trying to access the many businesses lining the road. There are all kinds of businesses lining the road; motels and restaurants, supermarkets, gas stations, pizzerias, second-hand stores, car lots, shoe stores, ice cream parlors, movie rental stores, and lots and lots of traffic lights. Delays and frustration are the norm.
The need for the bypass exists – the money doesn’t.
For more information:
http://www.nwaonline.net/articles/2008/06/04/news/060408fy412bypass.txt
http://www.nwarktimes.com/adg/News/227680/
Sunday, June 08, 2008
Fayetteville High School Update
The Fayetteville School Board, at its meeting May 29, 2008, voted 6 to 1 to offer to sell its 40-acre high school campus to University of Arkansas for $59 million. The offer is for land and buildings, including the high school, administrative offices, and sports facilities. At a meeting last Friday, U of A officials responded with a counter offer of $50 million. Terms and conditions would still need to be worked out.
Of course, the amount is subject to much discussion. Whether it appears too high or too low depends on which side of the fence people interviewed are on. From the U of A side, some feel that even $50 million is too high, given that substantial remodeling and refitting of the building will be required. From the School Board’s point of view and that of Buildsmart (an organization which favors keeping Fayetteville HS in its current location), the offer seems low.
Another issue from the U of A point of view is where the money to pay for it will come from. Some oppose adding to student fees to finance the purchase.
A sale of this magnitude is the largest either the U of A or Fayetteville School Board has ever undertaken. An appraisal commissioned by the district has placed the value of the property at $61.28 million, while another commissioned by the university put the price at $56.4 million.
If and when the sale is accepted, Fayetteville School Board will have many more crucial items to face before a new high school is built. First is location and second is funding. (I should have said first is funding because without that, location won’t matter.)
A new high school (and land) will cost somewhere around $110 million and inflation drives up the price every day. Even with $50 million in hand, a millage increase (between 3 and 5 mills) will have to be approved by the voters and that’s tough to do in Fayetteville.
In April the Fayetteville High School Select Committee 2 recommended that a new high school be built on a 73-acre site they refer to as Morningside (701 E. Huntsville Road). The school board has authorized the superintendent to explore that purchase for $5 million.
The board will also have to decide whether to sell 100 acres it owns in the northwest section of the district since it has now been eliminated as the site of the new high school.
The whole responsibility of whether, where, when, and how to build a new high school is complex at best. There are so many what ifs ---
Will the U of A and the Fayetteville School Board be able to negotiate a price agreeable to both sides?
What if U of A buys and voters deny a millage increase?
How large a millage increase will be needed?
Stay tuned for further details.
For more information:
http://nwahomepage.com/content/fulltext/?cid=13296
http://www.nwaonline.net/articles/2008/05/30/news/053008fzfayschoolbrd.txt
http://www.nwarktimes.com/adg/News/227184/
http://www.nwanews.com/nwat/News/65523/
http://www.nwanews.com/adg/News/227921
Of course, the amount is subject to much discussion. Whether it appears too high or too low depends on which side of the fence people interviewed are on. From the U of A side, some feel that even $50 million is too high, given that substantial remodeling and refitting of the building will be required. From the School Board’s point of view and that of Buildsmart (an organization which favors keeping Fayetteville HS in its current location), the offer seems low.
Another issue from the U of A point of view is where the money to pay for it will come from. Some oppose adding to student fees to finance the purchase.
A sale of this magnitude is the largest either the U of A or Fayetteville School Board has ever undertaken. An appraisal commissioned by the district has placed the value of the property at $61.28 million, while another commissioned by the university put the price at $56.4 million.
If and when the sale is accepted, Fayetteville School Board will have many more crucial items to face before a new high school is built. First is location and second is funding. (I should have said first is funding because without that, location won’t matter.)
A new high school (and land) will cost somewhere around $110 million and inflation drives up the price every day. Even with $50 million in hand, a millage increase (between 3 and 5 mills) will have to be approved by the voters and that’s tough to do in Fayetteville.
In April the Fayetteville High School Select Committee 2 recommended that a new high school be built on a 73-acre site they refer to as Morningside (701 E. Huntsville Road). The school board has authorized the superintendent to explore that purchase for $5 million.
The board will also have to decide whether to sell 100 acres it owns in the northwest section of the district since it has now been eliminated as the site of the new high school.
The whole responsibility of whether, where, when, and how to build a new high school is complex at best. There are so many what ifs ---
Will the U of A and the Fayetteville School Board be able to negotiate a price agreeable to both sides?
What if U of A buys and voters deny a millage increase?
How large a millage increase will be needed?
Stay tuned for further details.
For more information:
http://nwahomepage.com/content/fulltext/?cid=13296
http://www.nwaonline.net/articles/2008/05/30/news/053008fzfayschoolbrd.txt
http://www.nwarktimes.com/adg/News/227184/
http://www.nwanews.com/nwat/News/65523/
http://www.nwanews.com/adg/News/227921
Fayetteville Girl Going to the Olympics
At 16 years of age, Margaux Isaksen is an amazing young woman. The Fayetteville, Arkansas native has qualified to represent the U. S. at the 29th Olympic games in Beijing, China. She will compete in the modern pentathlon -- epee fencing, equestrian show jumping, swimming 200 meters, cross-country running 3,200 meters, and pistol shooting.
It’s unusual to have someone so young train for the triathlon, never mind excel in it. Isaksen did not start training fulltime until September 2007. Her original plan was to train for the 2012 Olympics but she has performed so well in recent months that she is now ranked second highest scoring American in the Modern Pentathlon World Cup Standings.
Only two competitors are permitted from each country. Isaksen’s teammate is 39-year-old Sheila Taormina.
Isaksen’s accomplishments give me more reasons to follow the Olympics this year. I wish her well.
For more information:
http://www.nwarktimes.com/nwat/Sports/65877/
http://www.usatoday.com/sports/olympics/summer/2008-05-13-teenpentathlete_N.htm
http://www.olympic-usa.org/11671_54142.htm
It’s unusual to have someone so young train for the triathlon, never mind excel in it. Isaksen did not start training fulltime until September 2007. Her original plan was to train for the 2012 Olympics but she has performed so well in recent months that she is now ranked second highest scoring American in the Modern Pentathlon World Cup Standings.
Only two competitors are permitted from each country. Isaksen’s teammate is 39-year-old Sheila Taormina.
Isaksen’s accomplishments give me more reasons to follow the Olympics this year. I wish her well.
For more information:
http://www.nwarktimes.com/nwat/Sports/65877/
http://www.usatoday.com/sports/olympics/summer/2008-05-13-teenpentathlete_N.htm
http://www.olympic-usa.org/11671_54142.htm
Friday, May 30, 2008
Marshallese Citizens in NW Arkansas Welcome President Litokwa Tomeing
Thousands of Marshallese people, many of them residents of NW Arkansas, welcomed Litokwa Tomeing, President of the Republic of the Marshall Islands (RMI), to Springdale over the Memorial Day weekend. Others came from as far away as Oregon and Florida.
The reason for President Tomeing’s visit was two-fold: to celebrate the 29th anniversary of Marshall Island independence and to announce there would soon be a fully staffed consulate in Springdale.
NW Arkansas is currently home to roughly 5,000 to 6,000 Marshallese. Hawaii and Oregon also have large populations with smaller groups living in Oklahoma, Texas and Florida.
A little background is necessary to understand why so many Marshallese come to this country to live and work --
During World War II, the United States conquered the Japanese who controlled and occupied the islands after the First World War. In 1947 the Marshall Islands and several more island groups in the South Pacific Sea were added to the Trust Territory of the Pacific Islands, administered by the U.S.
From 1946 to 1958 the U.S. tested 66 nuclear weapons in the Marshall Islands including the largest nuclear test the U.S. ever conducted. (If you’re old enough, I’m sure the names Bikini Atoll, Rongelap, and Aniwetok are familiar). Some health effects were virtually immediate while long term results still linger.
RMI consists of 29 atolls and 5 isolated islands spread over an area of about one million square miles. The population totals about 62,000 people. Most of the land lies at sea level and is vulnerable to typhoons. The economy is mainly agricultural but has few natural resources. Imports far exceed exports.
The U.S. Army maintains its Ronald Reagan Ballistic Missile Defense Test Site on Kwajalein Atoll and in addition to paying rent to the land owners, it is the largest employer.
The Republic of the Marshall Islands (RMI) was officially established in 1979 and became self governing.
In 1986 RMI and the U.S. entered into the Compact of Free Association which provided for U.S. aid to and defense of RMI in exchange for continued U.S. military use of the missile testing range on Kwajalein Atoll.
Under the Compact of Free Association, Marshallese citizens can come and go freely between their homeland and the United States. They can live, work and receive education in the U.S. but they maintain Marshallese citizenship. They are considered migrants — not immigrants or refugees. The migrant designation permits the Marshallese to enter and leave the U.S. without being screened.
Obviously, many have chosen the U.S.
To celebrate President Tomeing’s visit local Marshallese organized food, sports, singing, lots of visiting, and health and job fairs. Marshallese communities across the country sent 60 teams to compete in sports tournaments that included basketball, softball and volleyball. The 3-day celebration was held at Jones Center for Families in Springdale.
Foreign Minister Tony DeBrum who accompanied President Tomeing said the largest overseas Marshallese community lives in NW Arkansas. RMI is in the process of meeting U.S. requirements for the establishment of a consulate in Springdale to look after its citizens.
For more information:
http://www.nwaonline.net/articles/2008/05/24/news/052058azmarshallese.txt
http://www.nwarktimes.com/adg/News/226736
http://www.nwarktimes.com/adg/News/224373
http://en.wikipedia.org/wiki/Marshall_Islands
The reason for President Tomeing’s visit was two-fold: to celebrate the 29th anniversary of Marshall Island independence and to announce there would soon be a fully staffed consulate in Springdale.
NW Arkansas is currently home to roughly 5,000 to 6,000 Marshallese. Hawaii and Oregon also have large populations with smaller groups living in Oklahoma, Texas and Florida.
A little background is necessary to understand why so many Marshallese come to this country to live and work --
During World War II, the United States conquered the Japanese who controlled and occupied the islands after the First World War. In 1947 the Marshall Islands and several more island groups in the South Pacific Sea were added to the Trust Territory of the Pacific Islands, administered by the U.S.
From 1946 to 1958 the U.S. tested 66 nuclear weapons in the Marshall Islands including the largest nuclear test the U.S. ever conducted. (If you’re old enough, I’m sure the names Bikini Atoll, Rongelap, and Aniwetok are familiar). Some health effects were virtually immediate while long term results still linger.
RMI consists of 29 atolls and 5 isolated islands spread over an area of about one million square miles. The population totals about 62,000 people. Most of the land lies at sea level and is vulnerable to typhoons. The economy is mainly agricultural but has few natural resources. Imports far exceed exports.
The U.S. Army maintains its Ronald Reagan Ballistic Missile Defense Test Site on Kwajalein Atoll and in addition to paying rent to the land owners, it is the largest employer.
The Republic of the Marshall Islands (RMI) was officially established in 1979 and became self governing.
In 1986 RMI and the U.S. entered into the Compact of Free Association which provided for U.S. aid to and defense of RMI in exchange for continued U.S. military use of the missile testing range on Kwajalein Atoll.
Under the Compact of Free Association, Marshallese citizens can come and go freely between their homeland and the United States. They can live, work and receive education in the U.S. but they maintain Marshallese citizenship. They are considered migrants — not immigrants or refugees. The migrant designation permits the Marshallese to enter and leave the U.S. without being screened.
Obviously, many have chosen the U.S.
To celebrate President Tomeing’s visit local Marshallese organized food, sports, singing, lots of visiting, and health and job fairs. Marshallese communities across the country sent 60 teams to compete in sports tournaments that included basketball, softball and volleyball. The 3-day celebration was held at Jones Center for Families in Springdale.
Foreign Minister Tony DeBrum who accompanied President Tomeing said the largest overseas Marshallese community lives in NW Arkansas. RMI is in the process of meeting U.S. requirements for the establishment of a consulate in Springdale to look after its citizens.
For more information:
http://www.nwaonline.net/articles/2008/05/24/news/052058azmarshallese.txt
http://www.nwarktimes.com/adg/News/226736
http://www.nwarktimes.com/adg/News/224373
http://en.wikipedia.org/wiki/Marshall_Islands
Wednesday, May 21, 2008
Did you know it's possible to get an Energy Efficient Mortgage?
Energy Efficient Mortgage (EEM) is one of many FHA programs that insure mortgage loans. The mortgages are actually made by many banks, savings and loan associations, and mortgage companies, and the loans are covered by EEM insurance through FHA.
The idea behind the EEM program is to help achieve national energy-efficiency goals and reduce pollution as well as to provide better housing for people who might not otherwise be able to afford it.
The program considers the anticipated savings on monthly utility bills when a buyer purchases an energy-efficient home.
For example, let’s say the utilities in an older home you are considering will cost $200 a month and you qualify for a mortgage payment of $700/month but if you buy a certified energy-efficient home instead, the utility expense will be only $100/month. Now you can qualify for an $800 monthly mortgage payment.
This is a very simplified explanation but I hope it’s sufficient to give some serious consideration to an EEM.
Other provisions of the program are geared to adding energy efficient improvements to an existing home – one you already own or one you are considering buying.
Click on the links below for more details and technical information, such as maximum amounts, who qualifies, and how to get an EEM:
http://www.arkansasbusiness.com/article.aspx?aID=104162.19830.116304&view=all
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
http://www.huduser.org/periodicals/ResearchWorks/ResearchWorks_Mar06.pdf
http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm
The idea behind the EEM program is to help achieve national energy-efficiency goals and reduce pollution as well as to provide better housing for people who might not otherwise be able to afford it.
The program considers the anticipated savings on monthly utility bills when a buyer purchases an energy-efficient home.
For example, let’s say the utilities in an older home you are considering will cost $200 a month and you qualify for a mortgage payment of $700/month but if you buy a certified energy-efficient home instead, the utility expense will be only $100/month. Now you can qualify for an $800 monthly mortgage payment.
This is a very simplified explanation but I hope it’s sufficient to give some serious consideration to an EEM.
Other provisions of the program are geared to adding energy efficient improvements to an existing home – one you already own or one you are considering buying.
Click on the links below for more details and technical information, such as maximum amounts, who qualifies, and how to get an EEM:
http://www.arkansasbusiness.com/article.aspx?aID=104162.19830.116304&view=all
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
http://www.huduser.org/periodicals/ResearchWorks/ResearchWorks_Mar06.pdf
http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm
Wednesday, May 14, 2008
Investment Opportunity?
I came across an interesting tidbit the other day.
Remember the movie Sleepless in Seattle that starred Tom Hanks and Meg Ryan? Well, grab your checkbook and come on down! The houseboat seen in that motion picture can be yours for a mere $2.5 million.
The houseboat was built in 1978 and at 2,075 square feet is probably the largest houseboat on Lake Union. It features four bedrooms, nearly two full bathrooms, large windows and views of downtown Seattle, according to a Seattle newspaper article. (I’m still trying to figure out what “nearly two full bathrooms” means).
Don’t spend all your money to purchase it though because you’ll need $6,450 annually for taxes plus $388 monthly for homeownership dues.
The Realtor® showing the houseboat says about 50 agents and perhaps a dozen potential buyers have viewed it – but so far no offers.
According to my calculations, $2.5 million for 2,075 square feet of livable space equals an astronomical $1,200 per square foot.
(And I've been complaining about $200 per square foot for the downtown Fayetteville condos)...
http://seattlepi.nwsource.com/local/360788_sleepless27.html
Remember the movie Sleepless in Seattle that starred Tom Hanks and Meg Ryan? Well, grab your checkbook and come on down! The houseboat seen in that motion picture can be yours for a mere $2.5 million.
The houseboat was built in 1978 and at 2,075 square feet is probably the largest houseboat on Lake Union. It features four bedrooms, nearly two full bathrooms, large windows and views of downtown Seattle, according to a Seattle newspaper article. (I’m still trying to figure out what “nearly two full bathrooms” means).
Don’t spend all your money to purchase it though because you’ll need $6,450 annually for taxes plus $388 monthly for homeownership dues.
The Realtor® showing the houseboat says about 50 agents and perhaps a dozen potential buyers have viewed it – but so far no offers.
According to my calculations, $2.5 million for 2,075 square feet of livable space equals an astronomical $1,200 per square foot.
(And I've been complaining about $200 per square foot for the downtown Fayetteville condos)...
http://seattlepi.nwsource.com/local/360788_sleepless27.html
Light Rail – What is it and when is it coming to Northwest Arkansas?
As a professional Realtor®, I spend a good amount of time on the roads of NW Arkansas and frequently get stuck in gridlock. Traffic backs up on the ramps to and from I-540. The major intersections in Fayetteville and Bentonville repeatedly resemble parking lots. Traffic congestion is a huge waste of productive time, causes unnecessary expense at the gas station, adds to pollution, and increases daily stress.
If you’ve read my previous blogs, you heard me complain about the need for improvements to infrastructure and a light rail transportation system in NW Arkansas. Perhaps the time is getting closer for some serious consideration of light rail.
First, let me explain the term “light rail.” It generally refers to a system of streetcars that operate on some type of electric rail, ideally separated from automobile traffic. However, life is seldom ideal so light rail is often mixed with other city traffic.
Light rail usually makes frequent stops to load and unload passengers. It does not operate as fast as true rapid transit systems such as those found in large cities (think subways and elevated trains in New York or Chicago). Neither is it a railroad train that runs between cities and across the country.
Infrastructure has simply not been able to keep up in NW Arkansas. No matter how fast new roads are built or widened, they become clogged. Yet, many people don’t want to seriously consider light rail yet. Would they rather wait until we way behind on that front as well?
No one knows what a light rail system would cost. Coupling design/engineering/utility costs with right-of-way acquisitions and construction costs puts the estimate as high as $1 billion. That’s an astronomical amount of money. On the other hand, doing nothing for another 10 or 15 years would probably make $1 billion sound like a bargain.
There are many points to consider, such as:
Is our population large enough to support a light rail system? (Estimates are approximately 400,000 people live in Washington and Benton Counties.)
Would people avail themselves of light rail or continue to drive their gas-guzzling SUVs?
What other economic benefits would a light rail system provide?
What are the costs of not building a light rail system? (More and more roads?)
What high will the cost of gasoline rise?
I am not the first to think a feasibility study needs to be conducted to evaluate light rail and other methods of moving people around this area. The study might cost $1 million but the cost of doing nothing is much more expensive. My hope is that we can get moving on the study within the next year.
For more information:
http://en.wikipedia.org/wiki/Light_rail#Categories_of_light_rail
http://nwanews.com/nwat/News/64791/
If you’ve read my previous blogs, you heard me complain about the need for improvements to infrastructure and a light rail transportation system in NW Arkansas. Perhaps the time is getting closer for some serious consideration of light rail.
First, let me explain the term “light rail.” It generally refers to a system of streetcars that operate on some type of electric rail, ideally separated from automobile traffic. However, life is seldom ideal so light rail is often mixed with other city traffic.
Light rail usually makes frequent stops to load and unload passengers. It does not operate as fast as true rapid transit systems such as those found in large cities (think subways and elevated trains in New York or Chicago). Neither is it a railroad train that runs between cities and across the country.
Infrastructure has simply not been able to keep up in NW Arkansas. No matter how fast new roads are built or widened, they become clogged. Yet, many people don’t want to seriously consider light rail yet. Would they rather wait until we way behind on that front as well?
No one knows what a light rail system would cost. Coupling design/engineering/utility costs with right-of-way acquisitions and construction costs puts the estimate as high as $1 billion. That’s an astronomical amount of money. On the other hand, doing nothing for another 10 or 15 years would probably make $1 billion sound like a bargain.
There are many points to consider, such as:
Is our population large enough to support a light rail system? (Estimates are approximately 400,000 people live in Washington and Benton Counties.)
Would people avail themselves of light rail or continue to drive their gas-guzzling SUVs?
What other economic benefits would a light rail system provide?
What are the costs of not building a light rail system? (More and more roads?)
What high will the cost of gasoline rise?
I am not the first to think a feasibility study needs to be conducted to evaluate light rail and other methods of moving people around this area. The study might cost $1 million but the cost of doing nothing is much more expensive. My hope is that we can get moving on the study within the next year.
For more information:
http://en.wikipedia.org/wiki/Light_rail#Categories_of_light_rail
http://nwanews.com/nwat/News/64791/
Thursday, May 08, 2008
First Quarter 2008 Skyline Report
The quarterly Skyline Report breakfast, sponsored by Arvest Bank, was held last week for Washington County at the Clarion Inn in Fayetteville. Kathy Deck of the U of A Center for Business and Economic Research presented the highlights.
It’s always tough to get up early for these breakfasts, but the information for a real estate agent like me is invaluable, and I never miss them. We’re really lucky to have such good data, which usually confirms my own anecdotal evidence.
Anyhow, here’s a summary:
NW Arkansas’ supposedly “bullet proof” economy is showing some cracks. Of concern is the fact that new job growth in the area is less than the previous few years. And jobs are what primarily attract new people to the area (aside from retirees and those who move here for “quality of life” reasons).
Principally, there was a decline in new jobs created in the Professional and Business Services sector and in the Trade, Transportation and Utilities sector. These are large sectors of NW Arkansas employment and have a significant effect on job growth in the area.
In the commercial real estate sector things are not too bad, according to Deck, since commercial spaces in existing buildings are being filled and there has been restraint in initiating new commercial projects. At present there are 32.7 million square feet of competitive commercial space in NW Arkansas.
However, the multifamily situation is less positive. Fayetteville has the most healthy multifamily situation with one-bedroom vacancy rates under 10% while two-bedroom vacancy rates are just over 10%. Springdale’s two-bedroom vacancy rate is at almost 20%, as is that of Rogers. Bentonville’s two-bedroom vacancy rate is about 15%. Economists consider 5% as a healthy multi-family vacancy rate.
The average lease rate for an apartment in NW Arkansas in the first quarter of 2008 was $513, down 1.4% from the fourth quarter of 2007. The average price per square foot was $0.62 in the first quarter.
What I have been terming “condomania” in previous blog posts continues to plague NW Arkansas, as new complexes continue to be built and not necessarily sold. The luxury condos on the market have a list price of between $150-$200 per square foot. But only one of these was sold in the first quarter at a price above $200 per square foot, and only two were sold at prices above $150 per square foot (actually they sold at $152 per square foot).
There are also lots of lower priced condos on the market, for example, for the university market in Fayetteville. But condos in other towns are not doing as well. In Bentonville the average price of the 3 condos sold in the first quarter was $134,480 or $99.18 per square foot. In Fayetteville the average price was $136,362 for the 13 units sold in Q1 or $106.79 per square foot. Rogers had the highest average price for the 8 units sold there in Q1 at $244,684 or $134.30 per square foot.
For single family homes the situation continues as it has been for the past quarters—lots of homes for sale. In Q4 of 2007, there were 44.9 months of lot/ house inventory in active subdivisions and building permits were low. Few new subdivisions were getting approval and average prices were flat to declining.
In Q1 of 2008 building permits are significantly down compared to Q1 of 2007 in all of the major NW Arkansas towns. However, in some of the smaller towns, building permits are up slightly. The value of the permits is also down, reflecting a more realistic view by builders and developers of what buyers can actually purchase. There remains a glut of high-end homes on the market in NW Arkansas. The average value for building permits in both Washington and Benton Counties during Q1 of 2008 was approximately $150,000. (This does not include the value of the land).
The number of lots in active subdivisions continues to be high and has grown during the past couple of years. Benton County had 11,688 lots in active subdivisions in Q1 of 2006, 15,290 in Q1 of 2007, and 17,001 in Q1 of 2008. Washington County had 7,518 lots in active subdivisions in Q1 of 2006, 9,751 in Q1 of 2007 and 10,561 in Q1 of 2008.
However, new homes continue to be absorbed and (with the decrease in building permits) the inventory is decreasing little by little. This is a necessary adjustment. Nevertheless, there was still a surfeit of lots/new homes on the market in NW Arkansas in Q1 of 2008. Bentonville increased to 57.1 months’ worth. Centerton increased to 70.9 months. Fayetteville stayed at the same level at 41.5 months. Rogers increased to 31.8 months, and Springdale decreased to 29.8 months. For NW Arkansas as a whole, there is 49.4 months of lots/new homes available.
But at the same time new subdivisions were approved through the preliminary plat process by city entities in NW Arkansas. If all of these subdivisions were to be built, this would increase the inventory in NW Arkansas to 108 months’ worth. However, according to Deck, with the current credit crunch, many of these developers may not be able to get financing and thus this potential increase in inventory may not occur.
In terms of prices of homes, the situation varies from city to city. The average price of a home sold in Fayetteville actually increased in Q1 of 2008 compared to Q4 of 2007. In Springdale there was a slight increase, and in the smaller towns of Washington County there was a significant decrease in average sale price. In Benton County, Bentonville’s average sale price increased, as did that of Centerton. The average sale price in Rogers and Siloam Springs decreased in Q1 of 2008. But what is not shown in these numbers are concessions made to buyers, such as help with closing costs.
My own take: the bottom line, confirmed by this data from the U of A, is that there is still a lot of inventory, so it’s a great time to purchase a home in NW Arkansas. For sellers, it’s a less attractive scenario. They must price their homes competitively (i.e. on the lower end of any price ranges of recently sold similar homes) due to discounts that builders are giving to get out from under their construction loans on “spec” homes.
The Skyline Report normally deals with new construction for the residential market, but the average price figures also include re-sale homes. With so many new homes on the market in all price ranges, re-sale homes are suffering and staying on the market longer.
For sellers the key is to price their home to sell, not to sit on the market. For buyers, with so much to choose from, it may be difficult to make a decision. But these low prices (along with low interest rates and high inventory) may not last forever.
A lot of people are waiting for the market to “hit bottom” before they purchase a home. The problem with this strategy is that we won’t know when the bottom hits until it is past, and then prices will be on the rise again.
After the speculative frenzy of the past few years in NW Arkansas, it’s time for some sanity to enter the equation again. The outside investors looking for a quick buck have largely left NW Arkansas, and the main thing to keep in mind is that purchasing a home is traditionally a long-term investment. It’s a place to live and enjoy, raise a family, not just a paper investment like stocks and bonds. The market has declined here, but real estate is cyclical. What goes up must come down, and eventually our market will start appreciating again.
It IS a great time to buy now in NW Arkansas.
For more information on purchasing a home now:
http://www.buynwanow.com (why it’s a great time to buy now)
http://www.NWArkansasHomeSearch.com (search the NW Arkansas MLS)
http://www.JudyLuna.com (general information about NW Arkansas and the home purchase process)
It’s always tough to get up early for these breakfasts, but the information for a real estate agent like me is invaluable, and I never miss them. We’re really lucky to have such good data, which usually confirms my own anecdotal evidence.
Anyhow, here’s a summary:
NW Arkansas’ supposedly “bullet proof” economy is showing some cracks. Of concern is the fact that new job growth in the area is less than the previous few years. And jobs are what primarily attract new people to the area (aside from retirees and those who move here for “quality of life” reasons).
Principally, there was a decline in new jobs created in the Professional and Business Services sector and in the Trade, Transportation and Utilities sector. These are large sectors of NW Arkansas employment and have a significant effect on job growth in the area.
In the commercial real estate sector things are not too bad, according to Deck, since commercial spaces in existing buildings are being filled and there has been restraint in initiating new commercial projects. At present there are 32.7 million square feet of competitive commercial space in NW Arkansas.
However, the multifamily situation is less positive. Fayetteville has the most healthy multifamily situation with one-bedroom vacancy rates under 10% while two-bedroom vacancy rates are just over 10%. Springdale’s two-bedroom vacancy rate is at almost 20%, as is that of Rogers. Bentonville’s two-bedroom vacancy rate is about 15%. Economists consider 5% as a healthy multi-family vacancy rate.
The average lease rate for an apartment in NW Arkansas in the first quarter of 2008 was $513, down 1.4% from the fourth quarter of 2007. The average price per square foot was $0.62 in the first quarter.
What I have been terming “condomania” in previous blog posts continues to plague NW Arkansas, as new complexes continue to be built and not necessarily sold. The luxury condos on the market have a list price of between $150-$200 per square foot. But only one of these was sold in the first quarter at a price above $200 per square foot, and only two were sold at prices above $150 per square foot (actually they sold at $152 per square foot).
There are also lots of lower priced condos on the market, for example, for the university market in Fayetteville. But condos in other towns are not doing as well. In Bentonville the average price of the 3 condos sold in the first quarter was $134,480 or $99.18 per square foot. In Fayetteville the average price was $136,362 for the 13 units sold in Q1 or $106.79 per square foot. Rogers had the highest average price for the 8 units sold there in Q1 at $244,684 or $134.30 per square foot.
For single family homes the situation continues as it has been for the past quarters—lots of homes for sale. In Q4 of 2007, there were 44.9 months of lot/ house inventory in active subdivisions and building permits were low. Few new subdivisions were getting approval and average prices were flat to declining.
In Q1 of 2008 building permits are significantly down compared to Q1 of 2007 in all of the major NW Arkansas towns. However, in some of the smaller towns, building permits are up slightly. The value of the permits is also down, reflecting a more realistic view by builders and developers of what buyers can actually purchase. There remains a glut of high-end homes on the market in NW Arkansas. The average value for building permits in both Washington and Benton Counties during Q1 of 2008 was approximately $150,000. (This does not include the value of the land).
The number of lots in active subdivisions continues to be high and has grown during the past couple of years. Benton County had 11,688 lots in active subdivisions in Q1 of 2006, 15,290 in Q1 of 2007, and 17,001 in Q1 of 2008. Washington County had 7,518 lots in active subdivisions in Q1 of 2006, 9,751 in Q1 of 2007 and 10,561 in Q1 of 2008.
However, new homes continue to be absorbed and (with the decrease in building permits) the inventory is decreasing little by little. This is a necessary adjustment. Nevertheless, there was still a surfeit of lots/new homes on the market in NW Arkansas in Q1 of 2008. Bentonville increased to 57.1 months’ worth. Centerton increased to 70.9 months. Fayetteville stayed at the same level at 41.5 months. Rogers increased to 31.8 months, and Springdale decreased to 29.8 months. For NW Arkansas as a whole, there is 49.4 months of lots/new homes available.
But at the same time new subdivisions were approved through the preliminary plat process by city entities in NW Arkansas. If all of these subdivisions were to be built, this would increase the inventory in NW Arkansas to 108 months’ worth. However, according to Deck, with the current credit crunch, many of these developers may not be able to get financing and thus this potential increase in inventory may not occur.
In terms of prices of homes, the situation varies from city to city. The average price of a home sold in Fayetteville actually increased in Q1 of 2008 compared to Q4 of 2007. In Springdale there was a slight increase, and in the smaller towns of Washington County there was a significant decrease in average sale price. In Benton County, Bentonville’s average sale price increased, as did that of Centerton. The average sale price in Rogers and Siloam Springs decreased in Q1 of 2008. But what is not shown in these numbers are concessions made to buyers, such as help with closing costs.
My own take: the bottom line, confirmed by this data from the U of A, is that there is still a lot of inventory, so it’s a great time to purchase a home in NW Arkansas. For sellers, it’s a less attractive scenario. They must price their homes competitively (i.e. on the lower end of any price ranges of recently sold similar homes) due to discounts that builders are giving to get out from under their construction loans on “spec” homes.
The Skyline Report normally deals with new construction for the residential market, but the average price figures also include re-sale homes. With so many new homes on the market in all price ranges, re-sale homes are suffering and staying on the market longer.
For sellers the key is to price their home to sell, not to sit on the market. For buyers, with so much to choose from, it may be difficult to make a decision. But these low prices (along with low interest rates and high inventory) may not last forever.
A lot of people are waiting for the market to “hit bottom” before they purchase a home. The problem with this strategy is that we won’t know when the bottom hits until it is past, and then prices will be on the rise again.
After the speculative frenzy of the past few years in NW Arkansas, it’s time for some sanity to enter the equation again. The outside investors looking for a quick buck have largely left NW Arkansas, and the main thing to keep in mind is that purchasing a home is traditionally a long-term investment. It’s a place to live and enjoy, raise a family, not just a paper investment like stocks and bonds. The market has declined here, but real estate is cyclical. What goes up must come down, and eventually our market will start appreciating again.
It IS a great time to buy now in NW Arkansas.
For more information on purchasing a home now:
http://www.buynwanow.com (why it’s a great time to buy now)
http://www.NWArkansasHomeSearch.com (search the NW Arkansas MLS)
http://www.JudyLuna.com (general information about NW Arkansas and the home purchase process)
Wednesday, May 07, 2008
Removing the Kinks at NW Arkansas’ Professional Baseball Stadium
Springdale’s brand new baseball stadium opened April 10 to a full house of cheering fans, including Arkansas Governor Mike Beebe, Springdale Mayor Jerry Van Hoose, team owners, celebrities, and a flyover by four A-10 Thunderbolts from the Arkansas Air National Guard.
The stadium is beautiful by all accounts but now that the festivities are over, a few kinks need to be worked out – most notably traffic and parking.
Opening night traffic was congested in all directions but 56th Street was probably the worst of all. Of course, it was a sell-out crowd but one would have to hope that big crowds continue to come to the park.
There has been talk of widening 56th Street as well as possibly creating a new exit to the park directly off I-540, both of which would take a lot of money and time.
But, let’s face it; people will not be happy about spending an hour or more in traffic just to get to the stadium.
If development as envisioned by the City of Springdale is to occur in that area, the roads must be improved. It’s that simple!
Moving on to parking (no pun intended), much has to be fixed. The number of parking spaces (1,700) is insufficient for a big crowd. I have never been able to understand how the number of parking spaces is determined when building a new venue. Surely there’s a formula somewhere that needs to be reworked! For example, the new stadium can hold 7,800 fans but has parking for only 1,700 vehicles. That’s roughly 4 1/2 people per car, not counting players and workers. Maybe a lesson from Disney on people moving is in order.
If you think that’s worthy of note, you should have been at the Komen Race for the Cure April 19, which started at the ballpark. At least 17,000 people participated. Tents were set up in the parking lot so even fewer parking spaces were available. Shuttle buses ran from other parking lots but even at that, parking was a total mess.
The City of Springdale has rights to the stadium for concerts throughout the summer with seating for up to 12,000 people. I’m already wondering where those people will park.
I don’t mean to take anything away from the stadium or professional baseball in NW Arkansas, but the reality is that major enhancements will be needed for the success of the entire venture. By the way, the Naturals lost their opening game and have had more losses than wins since then.
For more information:
http://www.nwarktimes.com/adg/News/222509
http://www.nwarktimes.com/adg/Sports/222440
http://www.nwaonline.net/articles/2008/04/10/sports/041108bbmnatnotebk.txt
The stadium is beautiful by all accounts but now that the festivities are over, a few kinks need to be worked out – most notably traffic and parking.
Opening night traffic was congested in all directions but 56th Street was probably the worst of all. Of course, it was a sell-out crowd but one would have to hope that big crowds continue to come to the park.
There has been talk of widening 56th Street as well as possibly creating a new exit to the park directly off I-540, both of which would take a lot of money and time.
But, let’s face it; people will not be happy about spending an hour or more in traffic just to get to the stadium.
If development as envisioned by the City of Springdale is to occur in that area, the roads must be improved. It’s that simple!
Moving on to parking (no pun intended), much has to be fixed. The number of parking spaces (1,700) is insufficient for a big crowd. I have never been able to understand how the number of parking spaces is determined when building a new venue. Surely there’s a formula somewhere that needs to be reworked! For example, the new stadium can hold 7,800 fans but has parking for only 1,700 vehicles. That’s roughly 4 1/2 people per car, not counting players and workers. Maybe a lesson from Disney on people moving is in order.
If you think that’s worthy of note, you should have been at the Komen Race for the Cure April 19, which started at the ballpark. At least 17,000 people participated. Tents were set up in the parking lot so even fewer parking spaces were available. Shuttle buses ran from other parking lots but even at that, parking was a total mess.
The City of Springdale has rights to the stadium for concerts throughout the summer with seating for up to 12,000 people. I’m already wondering where those people will park.
I don’t mean to take anything away from the stadium or professional baseball in NW Arkansas, but the reality is that major enhancements will be needed for the success of the entire venture. By the way, the Naturals lost their opening game and have had more losses than wins since then.
For more information:
http://www.nwarktimes.com/adg/News/222509
http://www.nwarktimes.com/adg/Sports/222440
http://www.nwaonline.net/articles/2008/04/10/sports/041108bbmnatnotebk.txt
Friday, April 25, 2008
Employment/Unemployment Picture in NW Arkansas
With all of the doom and gloom about the economy in the media, I wanted to share a few thoughts on the employment/unemployment picture in NW Arkansas---
Benton and Washington counties are alive and well compared to a host of other communities throughout Arkansas and the U.S. in general.
The unemployment rate for the country as a whole was 4.8% in February – a drop of one-tenth of one percentage point.
For the Fayetteville Metropolitan Statistical Area, the drop was six-tenths of one percentage point – from 4.8% to 4.2%. Fayetteville MSA, as defined by the U. S. Bureau of Labor Statistics, includes Washington, Benton, and Madison Counties in Arkansas and McDonald County in extreme southwest Missouri.
For sake of comparison, Little Rock MSA saw a drop of three-tenths of one percentage point – from 5.2% to 4.9%. Fort Smith MSA dropped to 5.1%, and Pine Bluff MSA dropped to 7.7%.
The overall unemployment rate for the State of Arkansas was 5% in February.
Looking at it from a different perspective, Benton County with a total population of some 196,000 people, had approximately 99,000 employed in February. Washington County figures are similar. The population there is estimated at 186,500 and 98,950 people were employed in February.
All in all, these figures are somewhat encouraging. For example, nine Metropolitan Statistical Areas in California are suffering with unemployment rates in excess of 10%. We hear a lot about Detroit these days and no wonder. The unemployment rate for that MSA is 8.5%. It’s disheartening to know that throughout the U. S., 42 Metropolitan Statistical Areas have unemployment rates of 7% or higher!
Things could certainly be better but after reading many facts and figures about the employment/unemployment picture, I know it could be much worse than it is in NW Arkansas.
For more information:
http://www.bls.gov/news.release/metro.nr0.htm
http://www.nwarktimes.com/adg/Business/221869
http://tinyurl.com/6rrysn
http://tinyurl.com/6kycho
http://www.arkansasnews.com/archive/2008/03/29/News/345765.html
http://www.nwarktimes.com/adg/National/221116
http://www.nwarktimes.com/adg/Business/221869
Benton and Washington counties are alive and well compared to a host of other communities throughout Arkansas and the U.S. in general.
The unemployment rate for the country as a whole was 4.8% in February – a drop of one-tenth of one percentage point.
For the Fayetteville Metropolitan Statistical Area, the drop was six-tenths of one percentage point – from 4.8% to 4.2%. Fayetteville MSA, as defined by the U. S. Bureau of Labor Statistics, includes Washington, Benton, and Madison Counties in Arkansas and McDonald County in extreme southwest Missouri.
For sake of comparison, Little Rock MSA saw a drop of three-tenths of one percentage point – from 5.2% to 4.9%. Fort Smith MSA dropped to 5.1%, and Pine Bluff MSA dropped to 7.7%.
The overall unemployment rate for the State of Arkansas was 5% in February.
Looking at it from a different perspective, Benton County with a total population of some 196,000 people, had approximately 99,000 employed in February. Washington County figures are similar. The population there is estimated at 186,500 and 98,950 people were employed in February.
All in all, these figures are somewhat encouraging. For example, nine Metropolitan Statistical Areas in California are suffering with unemployment rates in excess of 10%. We hear a lot about Detroit these days and no wonder. The unemployment rate for that MSA is 8.5%. It’s disheartening to know that throughout the U. S., 42 Metropolitan Statistical Areas have unemployment rates of 7% or higher!
Things could certainly be better but after reading many facts and figures about the employment/unemployment picture, I know it could be much worse than it is in NW Arkansas.
For more information:
http://www.bls.gov/news.release/metro.nr0.htm
http://www.nwarktimes.com/adg/Business/221869
http://tinyurl.com/6rrysn
http://tinyurl.com/6kycho
http://www.arkansasnews.com/archive/2008/03/29/News/345765.html
http://www.nwarktimes.com/adg/National/221116
http://www.nwarktimes.com/adg/Business/221869
Sunday, April 13, 2008
Walton Arts Center - Grow or Go?
There’s been a lot of talk lately about the future of the Walton Arts Center on Dickson Street in Fayetteville. Has it outgrown its current facility? Can it be enlarged? If a larger facility is needed, will it be in Fayetteville or possibly Benton County?
Along with those questions, the lack of sufficient parking spaces in Fayetteville inevitably surfaces. The city often talks about the need to build a parking garage on the site of the WAC’s current parking lot.
Parking has been a major problem in Fayetteville as long as I can remember.
WAC opened in 1992 and since then has hosted myriad performances such as Broadway shows, YoYo Ma, Bill Cosby, ballet, musicals, ad infinitum.
Fayetteville and Washington County residents have been huge supporters of WAC – there’s no argument about that fact. But, so have Benton County residents and businesses. Attendance at WAC is nearly equal between residents of the two counties, which would indicate WAC would be successful in either county.
Individual contributors are fairly evenly split between the two counties. However, donations by Benton County’s many corporations outpace Washington County donations by a 3-1 margin.
The City of Fayetteville and University of Arkansas jointly own WAC and the city considers it a jewel. WAC was a major impetus in revitalizing run-down Dickson Street and Fayetteville does not want to lose the Walton Arts Center. The University of Arkansas performs multiple shows and concerts in it each year and prefers to have it remain near their campus.
Given all that, there is no doubt that Rogers or Bentonville would be more than happy to see a new, larger WAC more to their area. They have land available with easy access to I-540 and they understand, as does Fayetteville, the economic benefits of a regional arts center.
The first of three feasibility studies has been completed and results indicate NW Arkansas could support a facility of approximately 2,500 seats. The current facility has only 1,200 seats. That makes it much too small for large shows that must sell many tickets to be financially feasible.
Enlarging WAC at its current site would be difficult – but not impossible.
Meanwhile, WAC’s board says it is not planning to move and will make no decisions until after the studies have been completed later this year. No matter whether they choose to grow or go, fund raising would be the next logical step.
So, while all the studies and plans are completed, the subject of a parking garage remains on the table.
Here’s my take on the situation: If, perish the thought, a new and larger WAC is built outside of Fayetteville, the current facility will still be there undoubtedly hosting events that require a concert hall of its size. Additionally, something is always happening on Dickson Street. Parking is a problem now and as the city continues to grow, more parking will be needed.
Let’s not talk the parking garage to death; let’s get started building it.
For more information:
http://www.nwaonline.net/articles/2007/12/04/news/120507fzwac.txt
http://www.nwaonline.net/articles/2007/12/07/opinion/120807editorial.txt
http://www.nwaonline.net/articles/2008/02/09/news/021008azwac.txt
http://www.nwaonline.net/articles/2008/03/18/news/031908rzrogersplan.txt
http://www.nwaonline.net/articles/2008/03/27/opinion/032808editorial.txt
http://www.nwarktimes.com/adg/News/219737
Along with those questions, the lack of sufficient parking spaces in Fayetteville inevitably surfaces. The city often talks about the need to build a parking garage on the site of the WAC’s current parking lot.
Parking has been a major problem in Fayetteville as long as I can remember.
WAC opened in 1992 and since then has hosted myriad performances such as Broadway shows, YoYo Ma, Bill Cosby, ballet, musicals, ad infinitum.
Fayetteville and Washington County residents have been huge supporters of WAC – there’s no argument about that fact. But, so have Benton County residents and businesses. Attendance at WAC is nearly equal between residents of the two counties, which would indicate WAC would be successful in either county.
Individual contributors are fairly evenly split between the two counties. However, donations by Benton County’s many corporations outpace Washington County donations by a 3-1 margin.
The City of Fayetteville and University of Arkansas jointly own WAC and the city considers it a jewel. WAC was a major impetus in revitalizing run-down Dickson Street and Fayetteville does not want to lose the Walton Arts Center. The University of Arkansas performs multiple shows and concerts in it each year and prefers to have it remain near their campus.
Given all that, there is no doubt that Rogers or Bentonville would be more than happy to see a new, larger WAC more to their area. They have land available with easy access to I-540 and they understand, as does Fayetteville, the economic benefits of a regional arts center.
The first of three feasibility studies has been completed and results indicate NW Arkansas could support a facility of approximately 2,500 seats. The current facility has only 1,200 seats. That makes it much too small for large shows that must sell many tickets to be financially feasible.
Enlarging WAC at its current site would be difficult – but not impossible.
Meanwhile, WAC’s board says it is not planning to move and will make no decisions until after the studies have been completed later this year. No matter whether they choose to grow or go, fund raising would be the next logical step.
So, while all the studies and plans are completed, the subject of a parking garage remains on the table.
Here’s my take on the situation: If, perish the thought, a new and larger WAC is built outside of Fayetteville, the current facility will still be there undoubtedly hosting events that require a concert hall of its size. Additionally, something is always happening on Dickson Street. Parking is a problem now and as the city continues to grow, more parking will be needed.
Let’s not talk the parking garage to death; let’s get started building it.
For more information:
http://www.nwaonline.net/articles/2007/12/04/news/120507fzwac.txt
http://www.nwaonline.net/articles/2007/12/07/opinion/120807editorial.txt
http://www.nwaonline.net/articles/2008/02/09/news/021008azwac.txt
http://www.nwaonline.net/articles/2008/03/18/news/031908rzrogersplan.txt
http://www.nwaonline.net/articles/2008/03/27/opinion/032808editorial.txt
http://www.nwarktimes.com/adg/News/219737
Thursday, April 10, 2008
Professional Baseball in NW Arkansas
Play Ball! That’s a phrase many baseball fans have been waiting to hear. At 6:00 p.m. Thursday, April 10, the familiar phrase will be heard at the brand new Arvest Ballpark in Springdale, Arkansas.
Things have progressed right on schedule since voters narrowly approved spending $50 million in 2006 to buy land and build a ballpark on empty land near I-540.
The Northwest Arkansas Naturals will call the new stadium home. They are the Double A affiliate of the Kansas City Royals and will be playing in the Texas League.
Tickets to home games are almost impossible to buy because sales have been so brisk. Indeed, everyone in NW Arkansas wants the Naturals to be successful. The other cities of NW Arkansas are happy to have the ballpark near their cities. It is another amenity that enhances quality of life for the entire area – just as Fayetteville’s Walton Arts Center does and Crystal Bridges Museum of American Art will do when in opens in 2010 in Bentonville.
There have been various comments made that the ballpark will improve Springdale’s image, currently known as a ‘blue-collar’ town. Personally, I don’t see anything wrong with being a blue-collar town. It’s the working men and women who make this country the success it is.
The city fathers aren’t so much concerned with image as they are in making a financial success of the entire project. Commercial development must occur to provide increased sales tax revenue. Retail stores, hotels and restaurants, office space, and other entertainment venues are all seen as serious possibilities to replace pastures where cattle now graze.
To prepare for that, the city has been rezoning agricultural land near the park to commercial.
The city has spent more than $3 million to build water and sewer lines in the area so as be ready for future development.
They have also been working on building new roads and widening some existing roads. The ballpark is just a short distance from I-540 but as of today, the only access is by 56th Street, which is a two-lane road.
In the not too distant future, the new John Tyson Parkway will open, hopefully with an exit directly off I-540. The parkway will be the major east-west corridor across the southern part of Springdale.
With opening day just a day or so away, I would have to say the City of Springdale deserves appause for bringing this project in on time. It’s a very attractive asset to the community.
For more information:
http://www.nwaonline.net/articles/2008/04/05/news/040608azstadiumfut.txt
http://www.nwaonline.net/articles/2008/04/04/opinion/040508editorial.txt
http://www.nwaonline.net/articles/2008/04/05/news/040608azstadiumfinance.txt
http://www.nwaonline.net/articles/2008/04/01/sports/040208bbmnaturalnts.txt
http://www.nwarktimes.com/adg/News/222083
http://www.nwarktimes.com/adg/News/221889
Things have progressed right on schedule since voters narrowly approved spending $50 million in 2006 to buy land and build a ballpark on empty land near I-540.
The Northwest Arkansas Naturals will call the new stadium home. They are the Double A affiliate of the Kansas City Royals and will be playing in the Texas League.
Tickets to home games are almost impossible to buy because sales have been so brisk. Indeed, everyone in NW Arkansas wants the Naturals to be successful. The other cities of NW Arkansas are happy to have the ballpark near their cities. It is another amenity that enhances quality of life for the entire area – just as Fayetteville’s Walton Arts Center does and Crystal Bridges Museum of American Art will do when in opens in 2010 in Bentonville.
There have been various comments made that the ballpark will improve Springdale’s image, currently known as a ‘blue-collar’ town. Personally, I don’t see anything wrong with being a blue-collar town. It’s the working men and women who make this country the success it is.
The city fathers aren’t so much concerned with image as they are in making a financial success of the entire project. Commercial development must occur to provide increased sales tax revenue. Retail stores, hotels and restaurants, office space, and other entertainment venues are all seen as serious possibilities to replace pastures where cattle now graze.
To prepare for that, the city has been rezoning agricultural land near the park to commercial.
The city has spent more than $3 million to build water and sewer lines in the area so as be ready for future development.
They have also been working on building new roads and widening some existing roads. The ballpark is just a short distance from I-540 but as of today, the only access is by 56th Street, which is a two-lane road.
In the not too distant future, the new John Tyson Parkway will open, hopefully with an exit directly off I-540. The parkway will be the major east-west corridor across the southern part of Springdale.
With opening day just a day or so away, I would have to say the City of Springdale deserves appause for bringing this project in on time. It’s a very attractive asset to the community.
For more information:
http://www.nwaonline.net/articles/2008/04/05/news/040608azstadiumfut.txt
http://www.nwaonline.net/articles/2008/04/04/opinion/040508editorial.txt
http://www.nwaonline.net/articles/2008/04/05/news/040608azstadiumfinance.txt
http://www.nwaonline.net/articles/2008/04/01/sports/040208bbmnaturalnts.txt
http://www.nwarktimes.com/adg/News/222083
http://www.nwarktimes.com/adg/News/221889
Thursday, March 27, 2008
Fayetteville HS Update
Last evening (March 26) the committee studying the future Fayetteville HS sought input from the community at an open meeting at Ramay Jr. High. About 150 people showed up and about 40 spoke on behalf of either keeping the school at the current site or building a whole new school on a different site. The atmosphere was very civilized, and the variety of view points pointed to the complexity of the issue.
There are good arguments for both options, but after listening to everyone speak, I tend to agree with those who want to keep the high school at the current site. The most compelling arguments to me are that it is adjacent to the university (with access to its facilities) and is centrally located.
The consensus seems to be that Fayetteville deserves a world class high school for the 21st century. One of the proposals is to build a new building across the street from the current structure and renovate the current structure. This (to me) seems like a good compromise between those who want a totally new building and those who simply want to renovate the old HS.
The site in NW Fayetteville just seems too far for many students, especially those on the east side of town. If there were to be a new high school on a new site, I guess I would favor the Morningside site between Huntsville Road and 15th St. This is still centrally located.
For those who are interested in some of the working papers on this issue, the Fayetteville schools site has downloadable files:
http://schoolcenter.fayar.net/education/dept/dept.php?sectiondetailid=24097
The issues are extremely complex, but I was impressed by the dedication of the committee in considering all points of view. There will be another public meeting on April 3 at a site yet to be determined.
For more information about the meeting and different points of view on the issue:
http://www.nwarktimes.com/nwat/News/63536/
http://www.nwaonline.com/articles/2008/03/27/news/032708fzpublicoutcry.txt
There are good arguments for both options, but after listening to everyone speak, I tend to agree with those who want to keep the high school at the current site. The most compelling arguments to me are that it is adjacent to the university (with access to its facilities) and is centrally located.
The consensus seems to be that Fayetteville deserves a world class high school for the 21st century. One of the proposals is to build a new building across the street from the current structure and renovate the current structure. This (to me) seems like a good compromise between those who want a totally new building and those who simply want to renovate the old HS.
The site in NW Fayetteville just seems too far for many students, especially those on the east side of town. If there were to be a new high school on a new site, I guess I would favor the Morningside site between Huntsville Road and 15th St. This is still centrally located.
For those who are interested in some of the working papers on this issue, the Fayetteville schools site has downloadable files:
http://schoolcenter.fayar.net/education/dept/dept.php?sectiondetailid=24097
The issues are extremely complex, but I was impressed by the dedication of the committee in considering all points of view. There will be another public meeting on April 3 at a site yet to be determined.
For more information about the meeting and different points of view on the issue:
http://www.nwarktimes.com/nwat/News/63536/
http://www.nwaonline.com/articles/2008/03/27/news/032708fzpublicoutcry.txt
Tuesday, March 25, 2008
Future of Fayetteville H.S.--Public Meeting
A Public Engagement Meeting with the Fayetteville High School Select Committee is scheduled for Wednesday, March 26th to discuss the future location of FHS. This meeting will be held at the Ramay Junior High Cafeteria at 6:30 p.m.
The Future of Fayetteville High School is an important issue in our community, so please come out and express your opinion.
If you would like more information about this issue you can go to the Future of FHS website at:
http://schoolcenter.fayar.net/education/dept/dept.php?sectiondetailid=24097
Background:
Almost a year has passed since the Fayetteville School Board voted to remain a one high school district and add grade 9 to the mix. At that time the big question was where would that one school be located. Should the existing site be renovated and enlarged? Should a brand new school be built elsewhere? If elsewhere, just where would that be?
Fast forward to 2008. It seems the questions are exactly as they were. But the options have been narrowed down some. Two potential sites for a new school have been eliminated: a parcel south of 15th St. off Morningside Drive because of large areas of flood plain on the site as well as a sewer line through it, and a 94-acre parcel south of the Cliffs Apartments off Crossover Road because the owner of about 1/3 of the tract is not interested in selling.
As of now three sites remain in contention: the property north of 15th Street and south of Huntsville Road on Morningside Drive; a property the district already owns on Deane Solomon Road; and the current high school location.
A committee consisting of citizens, teachers, and students has been appointed to study the question of location. It is scheduled to make its recommendations to the board in April 2008. In addition to answering the big question, it has also been charged with determining at what point the new or improved high school should open.
But it’s not just question of building a new school or enlarging the old one. One problem has to do with streets to access the school. No matter which site is selected, the school district will also have to contribute to improving roadways for access to the school.
Members of the committee met with City of Fayetteville officials on March 12 to discuss what improvements would be necessary and a timetable for the improvements. According to Tim Conklin, city planner, it costs between $1 million and $1.3 million per lane mile to widen a two-lane road to a four-lane road. Additional challenges for the streets around the current site include the fact that they are narrow and wind through residential neighborhoods.
A second problem is the question of whether the University of Arkansas would buy the existing high school. The school board needs to know if U of A is serious about purchasing the property, and if so, how much would they pay. In my mind, it seems like a logical choice for the university. There is no other contiguous land available to enlarge the university campus.
But here’s the catch. The school board doesn’t yet know if it wants to sell the property and the university either doesn’t know if it wants it or won’t commit to buying it until the school board makes a decision.
Then there’s the question, again, of what size high school is necessary. If a new school is built, how many students should it accommodate? The growth rate in Fayetteville school district is currently negligible. In fall 2000, there were 2,474 students in grades 9-12. According to the most recent figures I saw, there are only 37 more students now – which is seven years later.
At that rate, it would take many years before capacity would be reached in a school for 3,000 students. Even more astounding is the statement that it would take 50 years to reach capacity if the school is built for 3,200 students!
Finally, the issue has polarized the community. Two grass roots organizations have formed, Build Smart (supports keeping the high school at the current location and opposes selling the current site to the University) and Fayetteville Students First (favors a high school at a new location, selling the current site and using the money for a down payment on the new school). Both groups are collecting signatures on petitions in support of their respective positions.
So it’s obvious there is a monumental amount of work to be done before many crucial decisions are made. There is one certainty, however. There will probably be a tax increase to fund whichever option is finally chosen. It behooves everyone to become informed. I cannot think of anything more important to a community than the quality of its education system.
For more information:
http://www.nwaonline.net/articles/2008/03/08/news/030908fztwogroups.txt
http://nwaonline.com/articles/2008/03/12/news/031308fzhsselect.txt
http://www.nwaonline.net/articles/2008/01/22/news/012308fzhighschool.txt
http://www.nwarktimes.com/nwat/News/61453
http://www.nwarktimes.com/nwat/Editorial/61372
http://www.nwarktimes.com/nwat/Editorial/61371
http://www.nwarktimes.com/nwat/Editorial/61370
http://www.nwarktimes.com/nwat/News/61639
http://www.nwarktimes.com/nwat/Editorial/61651
http://www.nwarktimes.com/nwat/Editorial/61650
http://www.nwarktimes.com/nwat/News/61609
http://www.nwanews.com/nwat/News/61996
The Future of Fayetteville High School is an important issue in our community, so please come out and express your opinion.
If you would like more information about this issue you can go to the Future of FHS website at:
http://schoolcenter.fayar.net/education/dept/dept.php?sectiondetailid=24097
Background:
Almost a year has passed since the Fayetteville School Board voted to remain a one high school district and add grade 9 to the mix. At that time the big question was where would that one school be located. Should the existing site be renovated and enlarged? Should a brand new school be built elsewhere? If elsewhere, just where would that be?
Fast forward to 2008. It seems the questions are exactly as they were. But the options have been narrowed down some. Two potential sites for a new school have been eliminated: a parcel south of 15th St. off Morningside Drive because of large areas of flood plain on the site as well as a sewer line through it, and a 94-acre parcel south of the Cliffs Apartments off Crossover Road because the owner of about 1/3 of the tract is not interested in selling.
As of now three sites remain in contention: the property north of 15th Street and south of Huntsville Road on Morningside Drive; a property the district already owns on Deane Solomon Road; and the current high school location.
A committee consisting of citizens, teachers, and students has been appointed to study the question of location. It is scheduled to make its recommendations to the board in April 2008. In addition to answering the big question, it has also been charged with determining at what point the new or improved high school should open.
But it’s not just question of building a new school or enlarging the old one. One problem has to do with streets to access the school. No matter which site is selected, the school district will also have to contribute to improving roadways for access to the school.
Members of the committee met with City of Fayetteville officials on March 12 to discuss what improvements would be necessary and a timetable for the improvements. According to Tim Conklin, city planner, it costs between $1 million and $1.3 million per lane mile to widen a two-lane road to a four-lane road. Additional challenges for the streets around the current site include the fact that they are narrow and wind through residential neighborhoods.
A second problem is the question of whether the University of Arkansas would buy the existing high school. The school board needs to know if U of A is serious about purchasing the property, and if so, how much would they pay. In my mind, it seems like a logical choice for the university. There is no other contiguous land available to enlarge the university campus.
But here’s the catch. The school board doesn’t yet know if it wants to sell the property and the university either doesn’t know if it wants it or won’t commit to buying it until the school board makes a decision.
Then there’s the question, again, of what size high school is necessary. If a new school is built, how many students should it accommodate? The growth rate in Fayetteville school district is currently negligible. In fall 2000, there were 2,474 students in grades 9-12. According to the most recent figures I saw, there are only 37 more students now – which is seven years later.
At that rate, it would take many years before capacity would be reached in a school for 3,000 students. Even more astounding is the statement that it would take 50 years to reach capacity if the school is built for 3,200 students!
Finally, the issue has polarized the community. Two grass roots organizations have formed, Build Smart (supports keeping the high school at the current location and opposes selling the current site to the University) and Fayetteville Students First (favors a high school at a new location, selling the current site and using the money for a down payment on the new school). Both groups are collecting signatures on petitions in support of their respective positions.
So it’s obvious there is a monumental amount of work to be done before many crucial decisions are made. There is one certainty, however. There will probably be a tax increase to fund whichever option is finally chosen. It behooves everyone to become informed. I cannot think of anything more important to a community than the quality of its education system.
For more information:
http://www.nwaonline.net/articles/2008/03/08/news/030908fztwogroups.txt
http://nwaonline.com/articles/2008/03/12/news/031308fzhsselect.txt
http://www.nwaonline.net/articles/2008/01/22/news/012308fzhighschool.txt
http://www.nwarktimes.com/nwat/News/61453
http://www.nwarktimes.com/nwat/Editorial/61372
http://www.nwarktimes.com/nwat/Editorial/61371
http://www.nwarktimes.com/nwat/Editorial/61370
http://www.nwarktimes.com/nwat/News/61639
http://www.nwarktimes.com/nwat/Editorial/61651
http://www.nwarktimes.com/nwat/Editorial/61650
http://www.nwarktimes.com/nwat/News/61609
http://www.nwanews.com/nwat/News/61996
Wednesday, March 19, 2008
The Feds Cut Rates Again – Why Doesn’t My Mortgage Rate Go Down?
The dramatic cuts in interest rates by the Federal Reserve Bank have caused many people to ask why mortgage rates are not dropping as well. It’s a legitimate question that has several answers and I’ll try to explain in simple terms…
The first, and most important, thing to understand is that the Federal Funds Rate is simply a suggested rate of interest that one bank can charge another bank for an overnight loan. At the end of each business day, banks must have certain amounts of cash on hand to meet reserve requirements as set by law. One bank may need to borrow to meet the requirements, while another bank may have surplus funds available. Banks can negotiate the actual interest rate on these overnight loans – they are not forced to charge the Fed Fund Rate.
Secondly, one has to realize that an overnight loan is extremely short-term while a 30-year fixed-rate mortgage is an extremely long-term loan. It is easy to commit funds at a certain rate for a short term but it is much more difficult to determine what the rate should be for a long term. Many factors such as anticipated economic growth and inflation rates must be taken into consideration in setting a rate of interest that would draw investors.
Now we have to take a look at U.S. Treasury Bonds. As we all know, T-Bonds are backed by the full faith and credit of the United States Government. In other words, T-Bonds are a risk-free investment. T-Bonds serve as a benchmark risk-free interest rate. Investors (you, me, professional money managers and everyone in-between) want to get the best possible return on their money based on the amount of risk involved.
Given the fact that the average length of a 30-year fixed-rate home mortgage is actually about ten years, it makes sense to compare investing in home mortgages (with risk) to 10-year fixed rate T-Bonds (no risk). The interest rate has to be higher on the mortgage securities or no one would invest in them.
As the number of foreclosures and defaults has increased (increasing risk), mortgage interest rates have had to go up in order to attract investors. This is the so-called “secondary market” for mortgages.
As many people who have purchased homes can attest, often the bank that gave the buyer the mortgage is not the bank to which buyers are making their payments. Shortly after closing, often buyers get a letter explaining that a different bank now has their mortgage. This is because the original bank sold their mortgage to another financial institution.
Many factors affect movement in mortgage rates – not the least of which is competition for money. An investor has money and a homebuyer needs to borrow money. Where can the investor get the best return?
This has been an overly simplified explanation of a very complex subject but I hope it helps at lease partially explain why changes in the Federal Funds Rate as discussed in the press have almost nothing to do with the mortgage rate.
For more information:
http://library.hsh.com:80/read_article-hsh.asp?row_id=85
The first, and most important, thing to understand is that the Federal Funds Rate is simply a suggested rate of interest that one bank can charge another bank for an overnight loan. At the end of each business day, banks must have certain amounts of cash on hand to meet reserve requirements as set by law. One bank may need to borrow to meet the requirements, while another bank may have surplus funds available. Banks can negotiate the actual interest rate on these overnight loans – they are not forced to charge the Fed Fund Rate.
Secondly, one has to realize that an overnight loan is extremely short-term while a 30-year fixed-rate mortgage is an extremely long-term loan. It is easy to commit funds at a certain rate for a short term but it is much more difficult to determine what the rate should be for a long term. Many factors such as anticipated economic growth and inflation rates must be taken into consideration in setting a rate of interest that would draw investors.
Now we have to take a look at U.S. Treasury Bonds. As we all know, T-Bonds are backed by the full faith and credit of the United States Government. In other words, T-Bonds are a risk-free investment. T-Bonds serve as a benchmark risk-free interest rate. Investors (you, me, professional money managers and everyone in-between) want to get the best possible return on their money based on the amount of risk involved.
Given the fact that the average length of a 30-year fixed-rate home mortgage is actually about ten years, it makes sense to compare investing in home mortgages (with risk) to 10-year fixed rate T-Bonds (no risk). The interest rate has to be higher on the mortgage securities or no one would invest in them.
As the number of foreclosures and defaults has increased (increasing risk), mortgage interest rates have had to go up in order to attract investors. This is the so-called “secondary market” for mortgages.
As many people who have purchased homes can attest, often the bank that gave the buyer the mortgage is not the bank to which buyers are making their payments. Shortly after closing, often buyers get a letter explaining that a different bank now has their mortgage. This is because the original bank sold their mortgage to another financial institution.
Many factors affect movement in mortgage rates – not the least of which is competition for money. An investor has money and a homebuyer needs to borrow money. Where can the investor get the best return?
This has been an overly simplified explanation of a very complex subject but I hope it helps at lease partially explain why changes in the Federal Funds Rate as discussed in the press have almost nothing to do with the mortgage rate.
For more information:
http://library.hsh.com:80/read_article-hsh.asp?row_id=85
Sunday, March 16, 2008
Bentonville School District Voters Say No
Voters in Bentonville, one of the fastest growing school districts in Arkansas, rejected a proposed millage increase this past week. The district asked voters to approve a 3.99-mill increase in property taxes. Preliminary totals indicate the vote was 2,435 against and 1,699 in favor.
The increase would have made the district’s millage rate 44.09 mills, the seventh highest rate in Arkansas. Owners of a home valued at $200,000 would have been taxed an additional $160 annually if the measure passed.
(For sake of comparison - Springdale’s rate is 38.6, Rogers’ rate is 38.7, and Fayetteville’s is 43.8. However, that may change as all three districts are considering the possibility of passing millage increases to build new schools.)
Bentonville’s millage increase would have permitted a $209 million bond to purchase land, build six schools, make improvements to existing schools, and provide technology upgrades. In addition, some of the money would have gone to operational costs.
The district also planned to restructure existing debt.
In 2002 Bentonville voters approved a $110 million in funding to construct of five schools, athletic facilities and an addition to the high school. Since that vote, growth has been almost unstoppable. The number of students increased by 1,100 in 2005-06 and another 841 this school year.
A failed millage increase this year undoubtedly means the district will have to make some revisions and ask for another increase next year.
For more information:
http://www.nwarktimes.com/adg/News/219315/
http://www.nwarktimes.com/bcdr/News/59440/
The increase would have made the district’s millage rate 44.09 mills, the seventh highest rate in Arkansas. Owners of a home valued at $200,000 would have been taxed an additional $160 annually if the measure passed.
(For sake of comparison - Springdale’s rate is 38.6, Rogers’ rate is 38.7, and Fayetteville’s is 43.8. However, that may change as all three districts are considering the possibility of passing millage increases to build new schools.)
Bentonville’s millage increase would have permitted a $209 million bond to purchase land, build six schools, make improvements to existing schools, and provide technology upgrades. In addition, some of the money would have gone to operational costs.
The district also planned to restructure existing debt.
In 2002 Bentonville voters approved a $110 million in funding to construct of five schools, athletic facilities and an addition to the high school. Since that vote, growth has been almost unstoppable. The number of students increased by 1,100 in 2005-06 and another 841 this school year.
A failed millage increase this year undoubtedly means the district will have to make some revisions and ask for another increase next year.
For more information:
http://www.nwarktimes.com/adg/News/219315/
http://www.nwarktimes.com/bcdr/News/59440/
Tuesday, March 04, 2008
Recent Reports Add Confusion to Foreclosure Statistics in NW Arkansas
It’s hard to get accurate data on foreclosures in Arkansas these days. The national media would have us think that every home on the market is being foreclosed on so all buyers need to do is make a "low-ball" offer and get a "steal," but it’s not true. Regular homes for sale are still maintaining fair prices, and although homes are no longer appreciating in NW Arkansas at the double digit appreciation rates of the past few years, they aren't depreciating either.
Awhile back I had some data which indicated that the foreclosure rate in Arkansas was actually lower recently, but now I have some new, but confusing information.
According to my new information, the 2007 foreclosure rate in Arkansas was 26.44% higher than 2006 according to Realty Trac, a well known company that maintains a database of more than 1 million properties nationwide that are in various phases of foreclosure. These statistics include default notices, auction sales, and repossessions.
The report showed 14,310 foreclosures in Arkansas last year, up from 11,318 in 2006, which ranks Arkansas 26th in the country.
States with foreclosure rate increases in excess of 200% include California, Delaware, Maryland, and Nevada. (The 200% is not a typographical error.) Washington, DC topped all the states with a whopping 608% increase!
Overall, nationwide foreclosure filings increased 79% in 2007 over 2006. Comparatively speaking, Arkansas looks pretty good with an increase of “only” 26%.
Nationwide, more than 1% of households were some stage of foreclosure. The foreclosure rate in Arkansas for 2007 is 0.51%, again a rather respectable ranking compared to many parts of the country.
Within Arkansas, foreclosure rates vary greatly by county. For example:
*Benton County saw a 105% increase, from 905 in 2006 to 1,855 last year. To put that in perspective, there was one foreclosure for every 41 households.
*Washington County increased 108%, from 567 to 1,177, - one foreclosure for every 65 households.
*Sebastian County (Fort Smith area) had a 4% drop in foreclosures, yet that was one foreclosure for every 66 households.
*Crawford County (Van Buren area) rate dropped 13% but that was one foreclosure for every 64 households.
Thus, you can see, simply looking at the rate of increase/decrease is not indicative of the number of households affected.
The official records of Benton County show only 509 foreclosures in 2007, down from 541 the preceding year. Two things can explain the discrepancy from the 1855 stated by the reporting firm and the county’s figure of 509:
The reporting firm included both judicial and nonjudicial foreclosures. In judicial foreclosures, the sale of the property is administered by the court system. In nonjudicial foreclosures, the sale is handled by an appointed trustee and filed with real estate records, which keeps it out of the Arkansas courts. Beginning January 1, 2008, a change in law requires nonjudicial foreclosures to be filed through the court system.
The reporting firm also included properties that may be only in default but counties do not record defaults. Thus, many of the defaults of fourth quarter 2007 won’t be included in county records until foreclosures enter the legal system in 2008.
So we don't know how many foreclosures there really are in NW Arkansas. But there are a bunch.
The bottom line here is that for buyers there may be some really good dealsfor buyers out there if the home they want to purchase is a “bank-owned” property. Foreclosed properties listed by realtors generally try to recoup what the bank has lent, so the list price may be substantially less than other similar homes in the same neighborhood. A clue to whether this may be the case is that MLS public remarks usually say something like “corporate owned” in the description.
For more information:
http://www.usatoday.com/money/economy/housing/2008-01-29-foreclosures_N.htm
http://www.nwaonline.net/articles/2008/02/09/news/021008arhomeforeclosures.txt
http://www.nwanews.com:80/adg/Business/216262/
http://www.nwaonline.net/articles/2008/01/30/business/013108foreclosurerates.txt
Friday, February 15, 2008
Good News and Bad News--NW Arkansas Housing Market
The good news is that now is a great time to purchase a home in NW Arkansas. With continuing low interest rates and a rising inventory of homes on the market, there is a lot to choose from for buyers. Prices have come down slightly, but the market in NW Arkansas has resisted this trend (which has devastated home values in other parts of the country), largely because of a robust economy.
The fear that prices may decline after they purchase a home is not necessarily one that buyers should be concerned about, depending on how long the buyer intends to live in the home purchased. The thing to remember is that traditionally a home purchase has been considered a long-term investment, not a short-term investment with double-digit returns. The housing market is not the stock market.
Home sellers in NW Arkansas have gotten spoiled in the past several years as appreciation rates soared. That drew investors from all over the country in a speculative frenzy, competing with buyers who actually wanted to live in the homes they purchased, driving up prices even further and faster. The peak was approximately in the 4th quarter of 2005, after which prices did decline.
But prices rose too far too fast and a correction was inevitable. The real estate market, after all, is cyclical. Now the investors and speculators have gone on to seek greener pastures elsewhere, so the absorption rate has slowed. Demand has fallen with fewer buyers on the streets (there is a seasonal factor at play here—winter and bad weather DO influence the real estate market in NW Arkansas). Homes are on the market longer, even in lower price ranges.
The result is lots of choices for buyers, many of whom are looking for a great deal. There are some very good buys now, but not every home can be gotten for a “steal.” Many buyers are still sitting on the fence, waiting for prices to go down. This may happen, but activity after the first of the year has increased, and when the weather improves and more buyers enter the market, those great deals will disappear quickly. That home that a buyer may have been “thinking about” may be sold, and the leisurely pace of looking for a home will disappear.
My advice to buyers is twofold: 1) if you find a home you really like, which meets your family’s needs, make an offer before it is sold to someone else; and 2) enlist the services of a reputable realtor to serve as your buyer agent, someone who is knowledgeable about the current (constantly changing) market, who will do a market analysis on the home you are about to purchase and guide you as to a fair price to offer while assuring that you don’t pay too much.
These comments are supported by the numbers. This past Thursday morning the Skyline Report was released at the regular quarterly breakfast in Fayetteville at the Clarion Inn. Kathy Deck, director of the Center for Business and Economic Research of the University of Arkansas, summarized the real estate market for residential, multifamily and commercial properties. She was guardedly positive as she presented housing market data for the 4th quarter of 2007.
Although there has been a decrease in the number of people moving to the area due to a decrease in the number of jobs created, the current level is still respectable. The five-year average of new jobs created in NW Arkansas has been 550 new jobs per month. At one point, during the peak, there were over 650 jobs created each month in NW Arkansas. This led to about 1200 people per month moving into the area. In 2007 just over 400 new jobs were created each month, and although Deck does not have new census figures yet, she estimated the number of people currently moving to the area each month to about 900.
For commercial space and multifamily units, vacancy rates are up. Some of this is due to over-building, and a decrease in new building permits may actually be a positive thing. In Q4 new commercial building permits in Rogers, for example, approached zero, while in Fayetteville there are continuing new projects in the pipeline. The situation in each town is different.
Multifamily vacancy rates are also up. According to Deck, the “ideal” vacancy rate (according to economists) for multifamily is between 5-7%, while rates under 10% are considered OK. Fayetteville’s multifamily vacancy rate for Q4 of 2007 was still under 10% but was higher than it was in Q3 of 2007 for 1 bedroom and 2 bedroom units. However for Springdale, Bentonville and Rogers, multifamily vacancy rates were over 10% and in some cases over 15%.
For residential properties, the Skyline Report looks mostly at activity in new construction in active subdivisions. In Q4 of 2007 the available inventory of new homes (including lots and homes under construction) represented a 44.9-month supply, up from a 42-month supply in Q3 of 2007. Building permit levels for new home starts continued to be low and there were few new subdivisions getting approval from city entities. This continued a trend begun in Q3 of 2006. The only NW Arkansas town with an increase in building permits issued in Q4 of 2007 when compared to Q3 was Rogers with a slight increase. Fayetteville observed only a slight decrease, while the other major towns experienced a larger decrease when compared to Q4 of 2006.
Other statistics showed more negative numbers, which in some cases is actually a positive thing as the housing market corrects itself. For example, in Q4 of 2007, there were 2,210 complete but unoccupied new homes in active subdivisions, a decline from 2,276 in Q3. Benton County experienced a decline of 3.6% in available complete inventory from Q3 of 2007 and a decline of 29% from Q4 of 2006. Washington County experienced a 2% decline from Q3 of 2007 and a 17% decline from Q4 of 2006. This means that more new homes have been purchased and are now being lived in—a good thing.
In other cases, the negative numbers actually reflect negative factors. From August 16, 2007 to November 15, 2007, there were 1357 existing homes (as opposed to new construction) sold in Benton and Washington Counties. This is a decline of 23.9% from the same period in 2006. This means that there were fewer re-sale homes sold in this time period of 2007, compared to 2006.
Similarly in Q4 of 2007 in NW Arkansas, the average sale price of existing houses declined from Q4 of 2006 by 2.2% in Benton County but it increased by 4.6% in Washington County.
In related news (drawing on data from the Arkansas Realtor Association and other sources), the two local newspapers report that NW Arkansas is better off than other parts of the country. A Morning News article cited data indicating that home prices in Benton County actually increased in 2007 by 1% compared to 2006, while in Washington County prices remained flat. The bad news is that there was a substantial decrease in the number of home sales in Washington and Benton Counties, and homes stayed on the market longer. In 2007, according to the Morning News, the number of home sales decreased by almost 20% in Benton County and by just under 11% in Washington County compared to 2006. Nevertheless, 2007 was the 3rd best year in history for home sales in the two counties.
Another article in the Arkansas Democrat Gazette confirms that statewide the number of homes sold dropped by 8.9%, but that was only about 10% below 2005 home sales, which was the best year in history. Home prices statewide did not decline but remained steady in 2007, unlike other parts of the country.
In my opinion, the continuing high inventory may put some downward pressure on home prices. But this is a necessary correction. In past Skyline Reports, Deck has indicated that the expected decline did not occur in 2007, and the newspaper reports indicate that prices remained steady in ’07 (good news for sellers). Even now, although there has been a decline in the number of homes sold and homes are staying on the market longer, buyers shouldn’t necessarily expect to be able to have so-called “low-ball” offers automatically accepted.
It IS a great time to purchase a home, but buyers in NW Arkansas must also be realistic. Real estate is essentially local, and NW Arkansas trends are generally better than what is reported in the national media. We have a healthy market in which construction and development has slowed in order to get the current high number of new homes sold. A correction is occurring, but it’s not anything close to the “doom and gloom” that is reported nationally.
The key to making a smart home purchase in any market is an experienced real estate agent who knows the market. And even if the agent doesn’t know as much as he or she should, buyers should ask him/her to do a market analysis on the home they decide to purchase. There are still some overpriced homes out there, but most sellers--who listen to their agents—have started to price their homes competitively.
And for sellers, there is usually a range of prices at which a home can be listed. Sellers should price their homes at the lower end of that range in order to be competitive now. It doesn’t matter what a seller has in the home, the market ultimately determines the value. And if an offer comes in that is less than ideal, accept it anyhow. There are so many homes for sale that buyers may just move on to their second choice home, and sellers may end up waiting for months more to get another (probably lower) offer.
I’m still working on my own market report for 2007, so for now I need to depend on statistics from other sources. I’ll have more analysis when I get my own report done in the near future.
For more information:
http://www.nwaonline.com/articles/2008/02/14/business/021508stablehomeprice.txt
http://www.nwanews.com/adg/Business/216877
The fear that prices may decline after they purchase a home is not necessarily one that buyers should be concerned about, depending on how long the buyer intends to live in the home purchased. The thing to remember is that traditionally a home purchase has been considered a long-term investment, not a short-term investment with double-digit returns. The housing market is not the stock market.
Home sellers in NW Arkansas have gotten spoiled in the past several years as appreciation rates soared. That drew investors from all over the country in a speculative frenzy, competing with buyers who actually wanted to live in the homes they purchased, driving up prices even further and faster. The peak was approximately in the 4th quarter of 2005, after which prices did decline.
But prices rose too far too fast and a correction was inevitable. The real estate market, after all, is cyclical. Now the investors and speculators have gone on to seek greener pastures elsewhere, so the absorption rate has slowed. Demand has fallen with fewer buyers on the streets (there is a seasonal factor at play here—winter and bad weather DO influence the real estate market in NW Arkansas). Homes are on the market longer, even in lower price ranges.
The result is lots of choices for buyers, many of whom are looking for a great deal. There are some very good buys now, but not every home can be gotten for a “steal.” Many buyers are still sitting on the fence, waiting for prices to go down. This may happen, but activity after the first of the year has increased, and when the weather improves and more buyers enter the market, those great deals will disappear quickly. That home that a buyer may have been “thinking about” may be sold, and the leisurely pace of looking for a home will disappear.
My advice to buyers is twofold: 1) if you find a home you really like, which meets your family’s needs, make an offer before it is sold to someone else; and 2) enlist the services of a reputable realtor to serve as your buyer agent, someone who is knowledgeable about the current (constantly changing) market, who will do a market analysis on the home you are about to purchase and guide you as to a fair price to offer while assuring that you don’t pay too much.
These comments are supported by the numbers. This past Thursday morning the Skyline Report was released at the regular quarterly breakfast in Fayetteville at the Clarion Inn. Kathy Deck, director of the Center for Business and Economic Research of the University of Arkansas, summarized the real estate market for residential, multifamily and commercial properties. She was guardedly positive as she presented housing market data for the 4th quarter of 2007.
Although there has been a decrease in the number of people moving to the area due to a decrease in the number of jobs created, the current level is still respectable. The five-year average of new jobs created in NW Arkansas has been 550 new jobs per month. At one point, during the peak, there were over 650 jobs created each month in NW Arkansas. This led to about 1200 people per month moving into the area. In 2007 just over 400 new jobs were created each month, and although Deck does not have new census figures yet, she estimated the number of people currently moving to the area each month to about 900.
For commercial space and multifamily units, vacancy rates are up. Some of this is due to over-building, and a decrease in new building permits may actually be a positive thing. In Q4 new commercial building permits in Rogers, for example, approached zero, while in Fayetteville there are continuing new projects in the pipeline. The situation in each town is different.
Multifamily vacancy rates are also up. According to Deck, the “ideal” vacancy rate (according to economists) for multifamily is between 5-7%, while rates under 10% are considered OK. Fayetteville’s multifamily vacancy rate for Q4 of 2007 was still under 10% but was higher than it was in Q3 of 2007 for 1 bedroom and 2 bedroom units. However for Springdale, Bentonville and Rogers, multifamily vacancy rates were over 10% and in some cases over 15%.
For residential properties, the Skyline Report looks mostly at activity in new construction in active subdivisions. In Q4 of 2007 the available inventory of new homes (including lots and homes under construction) represented a 44.9-month supply, up from a 42-month supply in Q3 of 2007. Building permit levels for new home starts continued to be low and there were few new subdivisions getting approval from city entities. This continued a trend begun in Q3 of 2006. The only NW Arkansas town with an increase in building permits issued in Q4 of 2007 when compared to Q3 was Rogers with a slight increase. Fayetteville observed only a slight decrease, while the other major towns experienced a larger decrease when compared to Q4 of 2006.
Other statistics showed more negative numbers, which in some cases is actually a positive thing as the housing market corrects itself. For example, in Q4 of 2007, there were 2,210 complete but unoccupied new homes in active subdivisions, a decline from 2,276 in Q3. Benton County experienced a decline of 3.6% in available complete inventory from Q3 of 2007 and a decline of 29% from Q4 of 2006. Washington County experienced a 2% decline from Q3 of 2007 and a 17% decline from Q4 of 2006. This means that more new homes have been purchased and are now being lived in—a good thing.
In other cases, the negative numbers actually reflect negative factors. From August 16, 2007 to November 15, 2007, there were 1357 existing homes (as opposed to new construction) sold in Benton and Washington Counties. This is a decline of 23.9% from the same period in 2006. This means that there were fewer re-sale homes sold in this time period of 2007, compared to 2006.
Similarly in Q4 of 2007 in NW Arkansas, the average sale price of existing houses declined from Q4 of 2006 by 2.2% in Benton County but it increased by 4.6% in Washington County.
In related news (drawing on data from the Arkansas Realtor Association and other sources), the two local newspapers report that NW Arkansas is better off than other parts of the country. A Morning News article cited data indicating that home prices in Benton County actually increased in 2007 by 1% compared to 2006, while in Washington County prices remained flat. The bad news is that there was a substantial decrease in the number of home sales in Washington and Benton Counties, and homes stayed on the market longer. In 2007, according to the Morning News, the number of home sales decreased by almost 20% in Benton County and by just under 11% in Washington County compared to 2006. Nevertheless, 2007 was the 3rd best year in history for home sales in the two counties.
Another article in the Arkansas Democrat Gazette confirms that statewide the number of homes sold dropped by 8.9%, but that was only about 10% below 2005 home sales, which was the best year in history. Home prices statewide did not decline but remained steady in 2007, unlike other parts of the country.
In my opinion, the continuing high inventory may put some downward pressure on home prices. But this is a necessary correction. In past Skyline Reports, Deck has indicated that the expected decline did not occur in 2007, and the newspaper reports indicate that prices remained steady in ’07 (good news for sellers). Even now, although there has been a decline in the number of homes sold and homes are staying on the market longer, buyers shouldn’t necessarily expect to be able to have so-called “low-ball” offers automatically accepted.
It IS a great time to purchase a home, but buyers in NW Arkansas must also be realistic. Real estate is essentially local, and NW Arkansas trends are generally better than what is reported in the national media. We have a healthy market in which construction and development has slowed in order to get the current high number of new homes sold. A correction is occurring, but it’s not anything close to the “doom and gloom” that is reported nationally.
The key to making a smart home purchase in any market is an experienced real estate agent who knows the market. And even if the agent doesn’t know as much as he or she should, buyers should ask him/her to do a market analysis on the home they decide to purchase. There are still some overpriced homes out there, but most sellers--who listen to their agents—have started to price their homes competitively.
And for sellers, there is usually a range of prices at which a home can be listed. Sellers should price their homes at the lower end of that range in order to be competitive now. It doesn’t matter what a seller has in the home, the market ultimately determines the value. And if an offer comes in that is less than ideal, accept it anyhow. There are so many homes for sale that buyers may just move on to their second choice home, and sellers may end up waiting for months more to get another (probably lower) offer.
I’m still working on my own market report for 2007, so for now I need to depend on statistics from other sources. I’ll have more analysis when I get my own report done in the near future.
For more information:
http://www.nwaonline.com/articles/2008/02/14/business/021508stablehomeprice.txt
http://www.nwanews.com/adg/Business/216877
Thursday, January 24, 2008
Way to Go, Mayor Womack!
I attended the annual business luncheon last Friday (Jan. 18) at the John Q. Hammonds Convention Center in Rogers, sponsored by the Center for Business and Economic Research of the U of A (more on this in a future post).
As I zipped up I-540 from Fayetteville I made good time, since it was before mid-day. But then I arrived at the Pinnacle Hills Parkway exit. Cars were backed up at a standstill so that it took almost 1/2 hour to go from where the northbound exit ramp leaves I-540, under the freeway to where the newly widened street turns left onto Pinnacle Hills Parkway. The way the stoplights were adjusted, only a few cars could turn left at each light, so that there were even more cars behind me still "parked" not only on the exit ramp, but a good ways down the freeway.
As I arrived at the intersection to make a left turn onto Pinnacle Hills, a gentleman in a black overcoat entered the scene and began directing traffic. He blocked part of the traffic going south on Pinnacle Hills so that people from the freeway exit turning left to get to the meeting could proceed more smoothly. With more than 1,000 business people in attendance, the traffic bottleneck made a lot of them late. I did get there on time, but just barely. As I was leaving, I chatted with another person from the luncheon who told me that the man directing traffic was Rogers' Mayor Steve Womack and that he did "stuff like that" from time to time.
I applaud Mayor Womack's initiative in taking charge of the situation and making sure business people got to this important annual economic event (if it was him--I'm not sure since I have never met him personally). But the incident points out the continuing problem of infrastructure keeping up with growth in NW Arkansas, particularly with regard to transportation.
Following are a few updates on various transportation/infrastructure projects for NW Arkansas:
The exit for Pinnacle Hills Promenade Mall is open from northbound I-540 but the overpass to the west side of I-540 and the exit from southbound I-540 are not. If the overpass had been finished, the traffic delay I encountered would probably not have happened.
In southwest Rogers, work is under way on Pauline Whitaker Parkway, a north-south street that will connect with the Promenade interchange on the west side of I-540, providing access to the new Mercy Medical Center, which will open in March. According to the current timetable, the road should be completed in May.
Several other north-south road improvements will soon be open in Rogers.
Bentonville is also busy widening roads, improving interchanges, installing drains, and working on concepts for future projects. As hard as the city works, it’s almost impossible to keep up with the need for more infrastructure.
One bright spot is the cities of Rogers and Bentonville partnering on some projects that affect both.
Bella Vista will, unfortunately, have to struggle with its traffic bottleneck long into the future. U.S. Hwy. 71 carries all interstate traffic right through the middle of town. A bypass connecting Arkansas and Missouri has been studied for years but now seems dead in the water. The latest estimates show a $139 million shortfall between construction cost and projected income from tolls. That report caused Missouri to reassign the funds they were planning to spend for their portion of the connector.
Springdale is going full speed ahead on three east-west corridors to relieve traffic on U.S. Hwy. 412. The city and voters alike are to be commended for their foresight and planning. Voters approved a 1% sales tax in 2003 to back $105 million in bonds and the city has been constructing roads non-stop. In light of ever-increasing inflation and growth, that vote was a good move.
In November 2007, the first section of the southern corridor between 40th and 48th streets opened. When complete in spring of 2009 the southern corridor will run from 48th Street to Butterfield Coach Road, which is currently the eastern edge of the city limits.
The northern corridor, which is located near Wagon Wheel Road, is scheduled for completion in the first half of 2009.
Portions of the central corridor have been complete for some time. The phase that will connect Hwy. 71B to Old Missouri Road is scheduled to finish in November 2008. The third phase of the central corridor that will connect Emma Avenue to Robinson Avenue on the eastern side of the city is scheduled to be complete in May 2009.
The Arkansas Highway and Transportation Department opened a new, wider 6-mile section of U.S. 412 near Hindsville. If and when all the planned improvements are made to U.S. 412, it will be a 4-lane highway from the Oklahoma border east to Huntsville. The state is also planning to widen a 1.6-mile stretch of Old Wire Road in Springdale from Randall Wobbe Lane north to Arkansas 264. No work is evident here yet.
Fayetteville is also busy improving roads but perhaps not on the same scale as some of the other cities. Portions of Wedington Drive are being widened and, it seems to me, moving along at a good pace. As I recall, it took some five years to widen about three miles of Hwy. 265 so I am impressed with the progress I see on Wedington.
And on the subject of Hwy. 265, Fayetteville has been notified by the state transportation department that it wants to proceed with widening that highway from Mission Boulevard north to Joyce Boulevard. Earlier plans had called for a 4-lane highway north to the Springdale city limit but inflation caused those plans to be scrapped.
Meanwhile, plans for public transportation on a major scale are sorely lacking. Ozark Regional Transportation provides some bus service on fixed routes in Fayetteville and Springdale. A few routes in Rogers and Bentonville are scheduled for this year. Sadly, a route from Springdale to Lowell to Rogers was canceled recently due to lack of funding.
Razorback Transit at the University of Arkansas in Fayetteville provides free bus service for the area around the campus and to the Northwest Arkansas Mall.
It seems to me that serious consideration must be given to improving public transportation on a regional scale (think light rail or funding for a beefed-up bus system). I don’t pretend to be a planning engineer but I do know congestion, traffic delays, and gridlock when I see it. Every once in a while I hear “light rail” being tossed around but I haven’t see any firm projections.
For more information:
http://www.bentonvillear.com/docs/street/street_newsletter_120107.pdf
http://www.rogersarkansas.com/planning/2010Bond.asp
http://www.nwarktimes.com/brog/News/55678/
http://www.nwanews.com/adg/National/201929/print/
http://www.joplinindependent.com/display_article.php/l-marble1192477593
http://www.nwaonline.net/articles/2007/12/05/news/120607sz412eupdate.txt
http://www.ozark.org/RidingORT/home.html
As I zipped up I-540 from Fayetteville I made good time, since it was before mid-day. But then I arrived at the Pinnacle Hills Parkway exit. Cars were backed up at a standstill so that it took almost 1/2 hour to go from where the northbound exit ramp leaves I-540, under the freeway to where the newly widened street turns left onto Pinnacle Hills Parkway. The way the stoplights were adjusted, only a few cars could turn left at each light, so that there were even more cars behind me still "parked" not only on the exit ramp, but a good ways down the freeway.
As I arrived at the intersection to make a left turn onto Pinnacle Hills, a gentleman in a black overcoat entered the scene and began directing traffic. He blocked part of the traffic going south on Pinnacle Hills so that people from the freeway exit turning left to get to the meeting could proceed more smoothly. With more than 1,000 business people in attendance, the traffic bottleneck made a lot of them late. I did get there on time, but just barely. As I was leaving, I chatted with another person from the luncheon who told me that the man directing traffic was Rogers' Mayor Steve Womack and that he did "stuff like that" from time to time.
I applaud Mayor Womack's initiative in taking charge of the situation and making sure business people got to this important annual economic event (if it was him--I'm not sure since I have never met him personally). But the incident points out the continuing problem of infrastructure keeping up with growth in NW Arkansas, particularly with regard to transportation.
Following are a few updates on various transportation/infrastructure projects for NW Arkansas:
The exit for Pinnacle Hills Promenade Mall is open from northbound I-540 but the overpass to the west side of I-540 and the exit from southbound I-540 are not. If the overpass had been finished, the traffic delay I encountered would probably not have happened.
In southwest Rogers, work is under way on Pauline Whitaker Parkway, a north-south street that will connect with the Promenade interchange on the west side of I-540, providing access to the new Mercy Medical Center, which will open in March. According to the current timetable, the road should be completed in May.
Several other north-south road improvements will soon be open in Rogers.
Bentonville is also busy widening roads, improving interchanges, installing drains, and working on concepts for future projects. As hard as the city works, it’s almost impossible to keep up with the need for more infrastructure.
One bright spot is the cities of Rogers and Bentonville partnering on some projects that affect both.
Bella Vista will, unfortunately, have to struggle with its traffic bottleneck long into the future. U.S. Hwy. 71 carries all interstate traffic right through the middle of town. A bypass connecting Arkansas and Missouri has been studied for years but now seems dead in the water. The latest estimates show a $139 million shortfall between construction cost and projected income from tolls. That report caused Missouri to reassign the funds they were planning to spend for their portion of the connector.
Springdale is going full speed ahead on three east-west corridors to relieve traffic on U.S. Hwy. 412. The city and voters alike are to be commended for their foresight and planning. Voters approved a 1% sales tax in 2003 to back $105 million in bonds and the city has been constructing roads non-stop. In light of ever-increasing inflation and growth, that vote was a good move.
In November 2007, the first section of the southern corridor between 40th and 48th streets opened. When complete in spring of 2009 the southern corridor will run from 48th Street to Butterfield Coach Road, which is currently the eastern edge of the city limits.
The northern corridor, which is located near Wagon Wheel Road, is scheduled for completion in the first half of 2009.
Portions of the central corridor have been complete for some time. The phase that will connect Hwy. 71B to Old Missouri Road is scheduled to finish in November 2008. The third phase of the central corridor that will connect Emma Avenue to Robinson Avenue on the eastern side of the city is scheduled to be complete in May 2009.
The Arkansas Highway and Transportation Department opened a new, wider 6-mile section of U.S. 412 near Hindsville. If and when all the planned improvements are made to U.S. 412, it will be a 4-lane highway from the Oklahoma border east to Huntsville. The state is also planning to widen a 1.6-mile stretch of Old Wire Road in Springdale from Randall Wobbe Lane north to Arkansas 264. No work is evident here yet.
Fayetteville is also busy improving roads but perhaps not on the same scale as some of the other cities. Portions of Wedington Drive are being widened and, it seems to me, moving along at a good pace. As I recall, it took some five years to widen about three miles of Hwy. 265 so I am impressed with the progress I see on Wedington.
And on the subject of Hwy. 265, Fayetteville has been notified by the state transportation department that it wants to proceed with widening that highway from Mission Boulevard north to Joyce Boulevard. Earlier plans had called for a 4-lane highway north to the Springdale city limit but inflation caused those plans to be scrapped.
Meanwhile, plans for public transportation on a major scale are sorely lacking. Ozark Regional Transportation provides some bus service on fixed routes in Fayetteville and Springdale. A few routes in Rogers and Bentonville are scheduled for this year. Sadly, a route from Springdale to Lowell to Rogers was canceled recently due to lack of funding.
Razorback Transit at the University of Arkansas in Fayetteville provides free bus service for the area around the campus and to the Northwest Arkansas Mall.
It seems to me that serious consideration must be given to improving public transportation on a regional scale (think light rail or funding for a beefed-up bus system). I don’t pretend to be a planning engineer but I do know congestion, traffic delays, and gridlock when I see it. Every once in a while I hear “light rail” being tossed around but I haven’t see any firm projections.
For more information:
http://www.bentonvillear.com/docs/street/street_newsletter_120107.pdf
http://www.rogersarkansas.com/planning/2010Bond.asp
http://www.nwarktimes.com/brog/News/55678/
http://www.nwanews.com/adg/National/201929/print/
http://www.joplinindependent.com/display_article.php/l-marble1192477593
http://www.nwaonline.net/articles/2007/12/05/news/120607sz412eupdate.txt
http://www.ozark.org/RidingORT/home.html
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