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Bentonville is to be commended on their newly designed website. User friendly, it is a wonderful resource for builders, developers and real estate agents in the area, as well as for the general public. It has lots of “goodies” and could serve as an example for other towns in NW Arkansas.
In their GIS (Geographical Information Sytem), there are interactive maps for all uses, including a link to Benton County parcel and lot information as well as FEMA flood zones (present and proposed), zoning and land use information, traffic counts on major streets, and the master street plan. For builders and developers, the utility maps show water lines, sewer lines, storm drainage, and fire hydrants. There are also school district, cemetery, street construction, and census maps. One must download a plug-in to use these features, but once done, the information is all there.
The eGov-Online section has 3 sections: one for paying utilities on line and checking your utility usage, the second for builders who want to apply for a building permit or check the status of a current permit, and the third for developers and others who have applied or want to apply to the planning commission for development projects, rezoning, variances, or conditional use permits. All of the forms are there and downloadable, along with instructions, calendars, and other information needed to guide users through the process.
The site also has general information for residents of Bentonville on such topics as recycling, the compost facility, city government, tax information and the like. There are also links to other sites such as Ozark Regional Transit, Bella Vista Village, and the new Crystal Bridges art museum.
According to Bentonville officials, the new site was developed with users in mind. Many of the phone calls currently received by city officials and employees are from residents with questions that can now be answered 24/7 by information on the website.
Good job, Bentonville!
The website address of Bentonville’s new website is:
http://www.bentonvillear.com/
Saturday, October 28, 2006
Baby Boomers Will Continue to Dominate the Housing Market for Many Years
It is probably no surprise that the housing needs of baby boomers are still a hot topic of conversation. The National Association of Realtors (NAR) gives a great deal of thought to this subject and performs studies and surveys to help forecast future needs.
The largest population group in U.S. history, the 78 million baby boomers are just now starting to reach early retirement age. Boomers have tremendous purchasing power. Most live in two-income households, with a median income in 2005 of $64,700. That is 31% higher than the median for all households. This generation makes up 37.5% of U.S. households, but receives nearly 50% of all aggregate household income, which helps to explain why 80% of boomers are homeowners.
One surprising fact did surface in the most recent comprehensive NAR survey: even with the statistics clearly showing financial resources greater than any generation before them, most survey respondents were unsure of their financial future. Seventy-five percent of respondents said they are not financially prepared for retirement and many even expressed anxiety about their ability to retire.
The retirement needs and wants of the boomer generation are as varied as the people themselves. Boomers are sometimes referred to as the “sandwich generation.” Many boomers married later in life than previous generations and therefore may still have children living at home. At the same time, it’s not unusual to find boomers with aging parents to care for.
One cannot simply assume baby boomers will address their retirement years in a pattern similar to older generations. NAR’s study surveyed nearly 2,000 baby boomers from all over the country with some likely results interspersed with a few that may not have been expected:
1. With life expectancy steadily increasing and retirement age for full Social Security benefits gradually increasing to age 67, many boomers are expected to work 5-10 years past age 65. Approximately 27% said they have no intention of ever retiring. Taking this into consideration, it appears they won’t be as interested in downsizing as the generations before them. Indeed, with today’s focus on technology, many people may prefer to have a home office or even two home offices.
2. When asked where they want to retire, 42% said in the South, 32% in the West, 15% in the Midwest and 12% in the Northeast. Consequently the Sunbelt continues to be a desirable destination for retirees.
3. Boomers have traditionally been active in the second home market, owning some 57% of all vacation homes. Forty percent currently plan to convert their vacation home into a primary residence in retirement.
4. The study also showed that 58% of rental properties are owned by baby boomers.
5. Ten percent of boomers indicated they plan to buy some form of real estate within the next year – many are considering a new primary residence, but the rest are thinking about land, second homes or commercial property.
6. Half of boomers who live in an urban area would like to retire in a small town or rural area, primarily because they believe doing so would result in a lower cost of living.
7. Other relocation considerations included being near family, availability of quality health care, and a better climate. Many also cited a desire to live near a body of water.
8. At the same time, more than a third of all baby boomers want to retire in an urban or suburban setting, motivated by quality health care and cultural activities.
9. When asked, half of baby boomers said they would consider living in an age-restricted community.
10. Women head up 20% of households. Their needs are usually different than traditional couples. Indeed, women frequently cited safety as their primary concern.
11. NAR President Thomas M. Stevens, said the survey shows most boomers want professional services when they buy real estate. Not only do they expect professional service and guidance from real estate agents, they place great value on those services. Mr. Stevens also stated “When buying a home, they want agents to represent their interests in the complex transaction process, and when selling they want help to establish the right asking price. Regardless of whether they’re buying or selling, boomers want agents to explain all of the complicated contracts, forms and agreements, to manage the closing process from start to finish, and to negotiate on their behalf.”
There is no doubt in my mind that baby boomers will have significant impact on all aspects of the real estate market for the next twenty years. This is the first time the U.S. has experienced a huge generation of affluent people nearing retirement age. Whether it’s a smaller home near their children and grandchildren or a place in the sun, boomers will be the driving force moving the market.
I stand ready to offer my professional assistance to anyone interested in buying or selling real estate in Northwest Arkansas. As a baby boomer myself, with similar attitudes found by the NAR survey, I can identify strongly with anyone looking for retirement property or a second home. Please call me at 479-966-0435 if you have any questions on this article or any other aspect of home ownership.
For more information:
http://www.rismedia.com/index.php/article/articleview/16337/1/1/
To read a previous article on the effect of baby boomers on the second home market, scroll down to the bottom of my blog and click Archives for June. The article is titled “Baby Boomers Dominate 2nd Home Market” and is dated June 14, 2006.
The largest population group in U.S. history, the 78 million baby boomers are just now starting to reach early retirement age. Boomers have tremendous purchasing power. Most live in two-income households, with a median income in 2005 of $64,700. That is 31% higher than the median for all households. This generation makes up 37.5% of U.S. households, but receives nearly 50% of all aggregate household income, which helps to explain why 80% of boomers are homeowners.
One surprising fact did surface in the most recent comprehensive NAR survey: even with the statistics clearly showing financial resources greater than any generation before them, most survey respondents were unsure of their financial future. Seventy-five percent of respondents said they are not financially prepared for retirement and many even expressed anxiety about their ability to retire.
The retirement needs and wants of the boomer generation are as varied as the people themselves. Boomers are sometimes referred to as the “sandwich generation.” Many boomers married later in life than previous generations and therefore may still have children living at home. At the same time, it’s not unusual to find boomers with aging parents to care for.
One cannot simply assume baby boomers will address their retirement years in a pattern similar to older generations. NAR’s study surveyed nearly 2,000 baby boomers from all over the country with some likely results interspersed with a few that may not have been expected:
1. With life expectancy steadily increasing and retirement age for full Social Security benefits gradually increasing to age 67, many boomers are expected to work 5-10 years past age 65. Approximately 27% said they have no intention of ever retiring. Taking this into consideration, it appears they won’t be as interested in downsizing as the generations before them. Indeed, with today’s focus on technology, many people may prefer to have a home office or even two home offices.
2. When asked where they want to retire, 42% said in the South, 32% in the West, 15% in the Midwest and 12% in the Northeast. Consequently the Sunbelt continues to be a desirable destination for retirees.
3. Boomers have traditionally been active in the second home market, owning some 57% of all vacation homes. Forty percent currently plan to convert their vacation home into a primary residence in retirement.
4. The study also showed that 58% of rental properties are owned by baby boomers.
5. Ten percent of boomers indicated they plan to buy some form of real estate within the next year – many are considering a new primary residence, but the rest are thinking about land, second homes or commercial property.
6. Half of boomers who live in an urban area would like to retire in a small town or rural area, primarily because they believe doing so would result in a lower cost of living.
7. Other relocation considerations included being near family, availability of quality health care, and a better climate. Many also cited a desire to live near a body of water.
8. At the same time, more than a third of all baby boomers want to retire in an urban or suburban setting, motivated by quality health care and cultural activities.
9. When asked, half of baby boomers said they would consider living in an age-restricted community.
10. Women head up 20% of households. Their needs are usually different than traditional couples. Indeed, women frequently cited safety as their primary concern.
11. NAR President Thomas M. Stevens, said the survey shows most boomers want professional services when they buy real estate. Not only do they expect professional service and guidance from real estate agents, they place great value on those services. Mr. Stevens also stated “When buying a home, they want agents to represent their interests in the complex transaction process, and when selling they want help to establish the right asking price. Regardless of whether they’re buying or selling, boomers want agents to explain all of the complicated contracts, forms and agreements, to manage the closing process from start to finish, and to negotiate on their behalf.”
There is no doubt in my mind that baby boomers will have significant impact on all aspects of the real estate market for the next twenty years. This is the first time the U.S. has experienced a huge generation of affluent people nearing retirement age. Whether it’s a smaller home near their children and grandchildren or a place in the sun, boomers will be the driving force moving the market.
I stand ready to offer my professional assistance to anyone interested in buying or selling real estate in Northwest Arkansas. As a baby boomer myself, with similar attitudes found by the NAR survey, I can identify strongly with anyone looking for retirement property or a second home. Please call me at 479-966-0435 if you have any questions on this article or any other aspect of home ownership.
For more information:
http://www.rismedia.com/index.php/article/articleview/16337/1/1/
To read a previous article on the effect of baby boomers on the second home market, scroll down to the bottom of my blog and click Archives for June. The article is titled “Baby Boomers Dominate 2nd Home Market” and is dated June 14, 2006.
Saturday, October 21, 2006
Rogers Opens Adult Wellness Center
Congratulations to the City of Rogers on opening the brand new Adult Wellness Center. As of October 2, 2006, anyone over the age of 50 will be able to join for a fee of only $25.00 a year. Residency in the city is not a requirement.
The 55,000 square foot facility is located at 201 W. Persimmon. It boasts two swimming pools, workout room with cardiovascular machines, full-size basketball court, an aerobics suite, 40-table card room, library, and a full assortment of activities. Hours of operation are 7 a.m. to 7 p.m., Monday through Friday.
The center will focus on helping senior citizens maintain functional strength and independence. Exercises can be tailored to meet special needs, such as people with hip and knee replacements.
It is a marvelous facility. Stop in for a visit.
For more information:
http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=167583
http://www.nwanews.com/rhtn/News/1633/
The 55,000 square foot facility is located at 201 W. Persimmon. It boasts two swimming pools, workout room with cardiovascular machines, full-size basketball court, an aerobics suite, 40-table card room, library, and a full assortment of activities. Hours of operation are 7 a.m. to 7 p.m., Monday through Friday.
The center will focus on helping senior citizens maintain functional strength and independence. Exercises can be tailored to meet special needs, such as people with hip and knee replacements.
It is a marvelous facility. Stop in for a visit.
For more information:
http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=167583
http://www.nwanews.com/rhtn/News/1633/
More Shopping Opportunities in NW Arkansas
Sam’s Club, a division of Wal-Mart Stores, Inc., has finally come to Bentonville. It seems odd that it took so many years for Wal-Mart to open its own wholesale membership club in the city it calls home, but at last, it has happened.
The store is huge, the inventory is huge, and the crowds on opening day were huge.
The big box look has been updated a bit. The building boasts more than 140,000 square feet under roof with 54 skylights, a coffee bar and a large white pipe at the entrance that transports aromas from the store's bakery directly to the noses of incoming customers.
The only other Sam’s Club in NW Arkansas is located in Springdale. Plans call for that store to close when a new Sam’s is opened in Fayetteville. The new store has been delayed for several months while the courts settle opposition brought by local liquor stores over the sale of liquor at that site. Arkansas liquor laws are complicated so I won’t bore you with all the wrangling that has been going on. Suffice it to say the Fayetteville Sam’s Club is probably a year away.
Pinnacle Hills Promenade, the newest destination for upscale shopping, is now open at I-540 and Perry Road in Rogers. Everything (almost everything) you always wanted can be found there. The Promenade calls itself a “lifestyle.”
Anchors are JCPenney and Arkansas’ own Dillard’s. Malco Theaters will feature an updated look and 12 screens for your viewing enjoyment. There are too many specialty shops to list here in addition to food of all types. Some stores, such as Barnes & Noble, aren’t open yet but will be soon.
The open-air mall features almost 1 million square feet of retail and office space along with beautiful architecture, fountains and verdant landscaping.
Naturally, something of this magnitude creates a need for more infrastructure. New intersections have already been created and construction is underway in I-540 for new on- and off-ramps. When complete, they will replace the Perry Road overpass and the new road will be named “Promenade.” Time will tell what else has to be done as other businesses are lured to the area.
The City of Rogers will receive millions of dollars in sales tax revenue when everything is built out and operating.
But let’s not forget Northwest Arkansas Mall in Fayetteville. It has been open for several years and has been a mainstay for the entire area, including parts of Missouri and Oklahoma. It not only has JCPenney and Dillard’s but also a large Sears. All together some 100 stores are there – all heated and air-conditioned indoors.
NW Arkansas Mall is conveniently located on Hwy. 71B, where north Fayetteville and south Springdale meet.
Most likely NW Arkansas Mall will lose a bit of business for the first couple of months after the Promenade opens. That always happens because people just like to see what’s new. But I think there is enough growth to support both malls. I also think when it’s 96 degrees (F.) in August or a snowy 20 dgrees (F.) in February, many people will prefer indoor shopping.
For more information:
http://www.samsclub.com/shopping/navigate.do?dest=0
http://www.pinnaclehillspromenade.com/html/index9.asp
http://www.generalgrowth.com/Properties/ndPinnacle_Hills.htm
http://www.northwestarkansasmall.com/
The store is huge, the inventory is huge, and the crowds on opening day were huge.
The big box look has been updated a bit. The building boasts more than 140,000 square feet under roof with 54 skylights, a coffee bar and a large white pipe at the entrance that transports aromas from the store's bakery directly to the noses of incoming customers.
The only other Sam’s Club in NW Arkansas is located in Springdale. Plans call for that store to close when a new Sam’s is opened in Fayetteville. The new store has been delayed for several months while the courts settle opposition brought by local liquor stores over the sale of liquor at that site. Arkansas liquor laws are complicated so I won’t bore you with all the wrangling that has been going on. Suffice it to say the Fayetteville Sam’s Club is probably a year away.
Pinnacle Hills Promenade, the newest destination for upscale shopping, is now open at I-540 and Perry Road in Rogers. Everything (almost everything) you always wanted can be found there. The Promenade calls itself a “lifestyle.”
Anchors are JCPenney and Arkansas’ own Dillard’s. Malco Theaters will feature an updated look and 12 screens for your viewing enjoyment. There are too many specialty shops to list here in addition to food of all types. Some stores, such as Barnes & Noble, aren’t open yet but will be soon.
The open-air mall features almost 1 million square feet of retail and office space along with beautiful architecture, fountains and verdant landscaping.
Naturally, something of this magnitude creates a need for more infrastructure. New intersections have already been created and construction is underway in I-540 for new on- and off-ramps. When complete, they will replace the Perry Road overpass and the new road will be named “Promenade.” Time will tell what else has to be done as other businesses are lured to the area.
The City of Rogers will receive millions of dollars in sales tax revenue when everything is built out and operating.
But let’s not forget Northwest Arkansas Mall in Fayetteville. It has been open for several years and has been a mainstay for the entire area, including parts of Missouri and Oklahoma. It not only has JCPenney and Dillard’s but also a large Sears. All together some 100 stores are there – all heated and air-conditioned indoors.
NW Arkansas Mall is conveniently located on Hwy. 71B, where north Fayetteville and south Springdale meet.
Most likely NW Arkansas Mall will lose a bit of business for the first couple of months after the Promenade opens. That always happens because people just like to see what’s new. But I think there is enough growth to support both malls. I also think when it’s 96 degrees (F.) in August or a snowy 20 dgrees (F.) in February, many people will prefer indoor shopping.
For more information:
http://www.samsclub.com/shopping/navigate.do?dest=0
http://www.pinnaclehillspromenade.com/html/index9.asp
http://www.generalgrowth.com/Properties/ndPinnacle_Hills.htm
http://www.northwestarkansasmall.com/
More Options for NW Arkansas Sports Fans
The City of Bentonville had big plans for a new sports arena. It recently outlined plans for City West, a 90-acre mixed-use development that city leaders hoped would be developed in the western section of the city.
It sounded great – in addition to a 9,000-seat sports and entertainment arena, the complex would also have had a bowling alley, a multi-screen movie complex, and a movie and sound studio. Hotels, office, retail and residential spaces would have completed the complex when it was built out.
Everything changed October 19th when the Rogers City Council announced the sports arena would be built in their city near I-540 and Pleasant Crossing. Seems the distance from I-540 and lack of infrastructure (mainly roads) were the deciding factors in moving the development from Bentonville to Rogers.
The name has also changed. It will be known as the Northwest Arkansas Sports and Entertainment Arena.
Talk has already started about bringing a WNBA team to the new arena. The plans for the arena are basically the same as before: 9,000 seats and forty luxury boxes. The project will include a training center, as well as two hotels and various commercial and retail businesses.
Site work is expected to begin in four to six weeks with a projected completion date of Sept. 15, 2008.
Meanwhile, the City of Springdale has formally signed a contract to bring Double-A baseball to the stadium it plans to build in southwest Springdale. The Kansas City Royals’ farm team of the Texas League, currently known as the Wichita Wranglers, will be renamed and call Springdale home when the 2008 season starts.
For more background on the baseball stadium in Springdale, please read my blog article dated July 21, 2006.
Both projects are huge undertakings and are sure to spur even more economic development in our area.
For more information:
http://www.nwanews.com/story.php?paper=bcdr§ion=News&storyid=39468
http://ww .nwaonline.net/articles/2006/09/27/news/092806szrichvisit.txt
http://www.nwanews.com/bcdr/News/41098/
It sounded great – in addition to a 9,000-seat sports and entertainment arena, the complex would also have had a bowling alley, a multi-screen movie complex, and a movie and sound studio. Hotels, office, retail and residential spaces would have completed the complex when it was built out.
Everything changed October 19th when the Rogers City Council announced the sports arena would be built in their city near I-540 and Pleasant Crossing. Seems the distance from I-540 and lack of infrastructure (mainly roads) were the deciding factors in moving the development from Bentonville to Rogers.
The name has also changed. It will be known as the Northwest Arkansas Sports and Entertainment Arena.
Talk has already started about bringing a WNBA team to the new arena. The plans for the arena are basically the same as before: 9,000 seats and forty luxury boxes. The project will include a training center, as well as two hotels and various commercial and retail businesses.
Site work is expected to begin in four to six weeks with a projected completion date of Sept. 15, 2008.
Meanwhile, the City of Springdale has formally signed a contract to bring Double-A baseball to the stadium it plans to build in southwest Springdale. The Kansas City Royals’ farm team of the Texas League, currently known as the Wichita Wranglers, will be renamed and call Springdale home when the 2008 season starts.
For more background on the baseball stadium in Springdale, please read my blog article dated July 21, 2006.
Both projects are huge undertakings and are sure to spur even more economic development in our area.
For more information:
http://www.nwanews.com/story.php?paper=bcdr§ion=News&storyid=39468
http://ww .nwaonline.net/articles/2006/09/27/news/092806szrichvisit.txt
http://www.nwanews.com/bcdr/News/41098/
Sunday, October 01, 2006
World Trade Center – Another Huge Economic Boost for NW Arkansas
The Sam M. Walton College of Business at the University of Arkansas has been accepted as a member of the World Trade Centers Association, a non-profit organization of 284 members in 78 countries. The association was founded in 1970 by the Port Authority of New York and New Jersey and is dedicated to “peace and stability through trade.”
Offices will be located in Rogers in a brand new building currently known as Pinnacle Business Center. The building will soon be renamed Arkansas World Trade Center Building.
This achievement resulted from cooperation between the University of Arkansas, the offices of senators Blanche Lincoln and David Pryor, U. S. Rep. John Boozman's office, the Arkansas Department of Economic Development, the U.S. Department of Commerce, the city of Rogers, and the Pinnacle Group.
The Department of Economic Development provided a $200,000 grant to pay the initiation fee into the World Trade Centers Association.
The Walton Family Charitable Support Trust has made a five-year financial grant to the center’s operating budget.
It appears to be a win-win situation for everyone, including the university, Arkansas manufacturers, Arkansas as a whole, and NW Arkansas in particular.
University students will work with Arkansas companies at the World Trade Center on international trade consulting and the university will have ample opportunity to focus on international business and fair trade.
Manufacturers, particularly small to mid-size companies that usually do not have the resources to expand into world markets, will have access to market research, trade missions, support services, governmental agencies, and more.
Northwest Arkansas will gain the recognition and economic boost brought on by expansion into world trade markets.
Everyone involved is to be commended for their efforts and alacrity in bringing this home to NW Arkansas. It’s hard to believe that something that was just an idea a few months ago will become operational January 15, 2007.
For more information:
http://www.nwanews.com/brog/News/39328/
http://www.nwanews.com/story.php?paper=adg§ion=National&storyid=167100
http://www.nwanews.com/story.php?paper=adg§ion=Business&storyid=166752
Offices will be located in Rogers in a brand new building currently known as Pinnacle Business Center. The building will soon be renamed Arkansas World Trade Center Building.
This achievement resulted from cooperation between the University of Arkansas, the offices of senators Blanche Lincoln and David Pryor, U. S. Rep. John Boozman's office, the Arkansas Department of Economic Development, the U.S. Department of Commerce, the city of Rogers, and the Pinnacle Group.
The Department of Economic Development provided a $200,000 grant to pay the initiation fee into the World Trade Centers Association.
The Walton Family Charitable Support Trust has made a five-year financial grant to the center’s operating budget.
It appears to be a win-win situation for everyone, including the university, Arkansas manufacturers, Arkansas as a whole, and NW Arkansas in particular.
University students will work with Arkansas companies at the World Trade Center on international trade consulting and the university will have ample opportunity to focus on international business and fair trade.
Manufacturers, particularly small to mid-size companies that usually do not have the resources to expand into world markets, will have access to market research, trade missions, support services, governmental agencies, and more.
Northwest Arkansas will gain the recognition and economic boost brought on by expansion into world trade markets.
Everyone involved is to be commended for their efforts and alacrity in bringing this home to NW Arkansas. It’s hard to believe that something that was just an idea a few months ago will become operational January 15, 2007.
For more information:
http://www.nwanews.com/brog/News/39328/
http://www.nwanews.com/story.php?paper=adg§ion=National&storyid=167100
http://www.nwanews.com/story.php?paper=adg§ion=Business&storyid=166752
Saturday, September 30, 2006
Fayetteville’s Sales Tax Rate Increase and Extension
What do sewers, roads, and trails have in common? You guessed it, money! Lots of money.
Fayetteville voters went to the polls September 12th and voted to increase city sales tax by ¼ of 1%. They also voted to extend of the number of years before an existing ¾ of 1% sales tax will end. Thus, starting January 1, 2007, state, county and city sales tax on most purchases in Fayetteville will total 9¼% for the next 12 years. Hotel, motel and restaurant tax is an additional 2% on purchases of that type.
For those who haven’t lived here for several years, here is a brief summary of where we are on the sewer project, and how we got here-----
Back in the 1990s, city leaders realized that unprecedented growth would necessitate an improved wastewater treatment system. In 2000, city officials estimated $60 million to $90 million would be needed to cover sewer plant improvements.
In 2001, city administrators estimated $125 million was needed for the sewer project. Voters agreed and passed an increase of ¾ of 1% sales tax. The project was expected to be complete by September 2006. If everything went as planned, the bonds would have been paid off in 2013 and the increased sales tax increase would have ceased.
Unfortunately, things didn’t go as planned. By 2003, estimates had escalated to $140 million and completion was scheduled for 2007.
By 2005, fingers started pointing in all directions. Virtually everyone and everything imaginable were blamed for the cost overruns and delays. The engineers and designers, project directors, mayor, city staff, hurricanes Katrina and Rita, war in Iraq, China’s increasing demands for raw materials and energy – all were blamed. Some said it was no one’s fault - it was just that the original plan and cost estimates were “overly optimistic.”
Fast forward to 2006. Voters were told they would have to pay to complete the sewer project one way or another. They had two choices: (1) vote to increase and extend the sales tax or (2) pay considerably higher sewer fees each month for a much longer number of years.
Voters (the ones who vote anyway) are intelligent people. It was easy to see that approving the sales tax was the better choice. Everyone visiting the city would help residents pay for the sewers. Each time a visitor patronized a restaurant, spent a night at a motel, bought a gift, or shopped for groceries, money would roll in to the city coffers.
Again, I am saddened by the thousands of registered voters who did not take the time to make their voices heard. Roughly 83% of voters did NOT vote! But, I digress. Back to the subject of sewers.
The increase in sales tax revenue will be used to (hopefully) complete the sewer project. I have to say “hopefully” because at this point, no one can be certain about total costs. Some portions of the project have not even gone out to bid.
In addition to the $42 million sales tax increase that will be used to repay sewer bonds, voters approved additional expenditures for street improvements and trails. $66 million will help widen roads and reconfigure some extremely congested intersections. It will take several years for the planned improvements to be completed and I say the sooner the better.
And lastly, voters approved spending $2 million to improve hiking/biking trails. This is another example of what gives Fayetteville high rankings for quality of life.
For more information:
http://www.nwaonline.net/articles/2006/09/12/columns/brenda_blagg/01blagg.txt
http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=166459
Fayetteville voters went to the polls September 12th and voted to increase city sales tax by ¼ of 1%. They also voted to extend of the number of years before an existing ¾ of 1% sales tax will end. Thus, starting January 1, 2007, state, county and city sales tax on most purchases in Fayetteville will total 9¼% for the next 12 years. Hotel, motel and restaurant tax is an additional 2% on purchases of that type.
For those who haven’t lived here for several years, here is a brief summary of where we are on the sewer project, and how we got here-----
Back in the 1990s, city leaders realized that unprecedented growth would necessitate an improved wastewater treatment system. In 2000, city officials estimated $60 million to $90 million would be needed to cover sewer plant improvements.
In 2001, city administrators estimated $125 million was needed for the sewer project. Voters agreed and passed an increase of ¾ of 1% sales tax. The project was expected to be complete by September 2006. If everything went as planned, the bonds would have been paid off in 2013 and the increased sales tax increase would have ceased.
Unfortunately, things didn’t go as planned. By 2003, estimates had escalated to $140 million and completion was scheduled for 2007.
By 2005, fingers started pointing in all directions. Virtually everyone and everything imaginable were blamed for the cost overruns and delays. The engineers and designers, project directors, mayor, city staff, hurricanes Katrina and Rita, war in Iraq, China’s increasing demands for raw materials and energy – all were blamed. Some said it was no one’s fault - it was just that the original plan and cost estimates were “overly optimistic.”
Fast forward to 2006. Voters were told they would have to pay to complete the sewer project one way or another. They had two choices: (1) vote to increase and extend the sales tax or (2) pay considerably higher sewer fees each month for a much longer number of years.
Voters (the ones who vote anyway) are intelligent people. It was easy to see that approving the sales tax was the better choice. Everyone visiting the city would help residents pay for the sewers. Each time a visitor patronized a restaurant, spent a night at a motel, bought a gift, or shopped for groceries, money would roll in to the city coffers.
Again, I am saddened by the thousands of registered voters who did not take the time to make their voices heard. Roughly 83% of voters did NOT vote! But, I digress. Back to the subject of sewers.
The increase in sales tax revenue will be used to (hopefully) complete the sewer project. I have to say “hopefully” because at this point, no one can be certain about total costs. Some portions of the project have not even gone out to bid.
In addition to the $42 million sales tax increase that will be used to repay sewer bonds, voters approved additional expenditures for street improvements and trails. $66 million will help widen roads and reconfigure some extremely congested intersections. It will take several years for the planned improvements to be completed and I say the sooner the better.
And lastly, voters approved spending $2 million to improve hiking/biking trails. This is another example of what gives Fayetteville high rankings for quality of life.
For more information:
http://www.nwaonline.net/articles/2006/09/12/columns/brenda_blagg/01blagg.txt
http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=166459
Tuesday, September 19, 2006
Bikes, Blues & BBQ Rally in Fayetteville
The 6th Annual Bikes, Blues & BBQ Rally will be revving up the engines and getting underway Wednesday, September 27th through Saturday, September 30th, 2006. Polish your motorcycle, if you have one, and “Come on Down” to Dickson Street in Fayetteville. If you don’t have a motorcycle, come by car, truck, bicycle, or on foot. It doesn’t matter how you get here, just don’t miss it!
Bikes, Blues & BBQ bills itself as the fastest growing motorcycle rally in the world. Last year, approximately 250,000 people enjoyed the event, which featured about 100,000 motorcycles. Organizers expect some 300,000 people this year.
So many events are scheduled that everyone will find something to their liking. Live music shows are free every night at the Randal Tyson Track Center.
You won’t want to miss the Parade of Power Saturday when bikes will be lining the streets for miles. Dickson Street will be closed to the usual traffic.
If you like food, there will be free BBQ venues or you might want to stop by the state Championship BBQ Cookoff competition.
Not to be overlooked (perhaps I say “looked over,”) is the final competition in the Ms. Bikes, Blues & BBQ Contest.
About 140 vendors will set up their wares and food in throughout the area.
A free, indoor, air-conditioned beer garden is sure to be a big hit.
The Fayetteville Fire Fighter’s Association Poker Run takes place at 8:00 a.m. Saturday.
And, if you and your sweetie haven’t had a chance to tie the knot, legal weddings will be performed starting at 2:00 p.m. Saturday. Just don’t forget - you will need to obtain an Arkansas Marriage License no later than Friday, Sept. 29th.
The Ozarks in early autumn are simply magnificent. The weather is great and the community welcomes its visitors. Fayetteville is located only six hours from Dallas and St. Louis, five hours from Memphis and Kansas City, and two hours from Tulsa, Oklahoma and Branson, Missouri.
Perhaps best of all, Bikes, Blues & BBQ is a non-profit organization that donates proceeds to area charities. This year, a new Harley Davidson Classic Road King will be raffled off September 30th with proceeds going to the Fayetteville Boys and Girls Club.
In 2005, Bikes, Blues & BBQ raised over $125,000 for local charities. In addition, this rally is good, clean fun. A lot of effort goes into keeping it family friendly and in keeping with community values.
For more information:
http://www.bikesbluesandbbq.org/index.html
Bikes, Blues & BBQ bills itself as the fastest growing motorcycle rally in the world. Last year, approximately 250,000 people enjoyed the event, which featured about 100,000 motorcycles. Organizers expect some 300,000 people this year.
So many events are scheduled that everyone will find something to their liking. Live music shows are free every night at the Randal Tyson Track Center.
You won’t want to miss the Parade of Power Saturday when bikes will be lining the streets for miles. Dickson Street will be closed to the usual traffic.
If you like food, there will be free BBQ venues or you might want to stop by the state Championship BBQ Cookoff competition.
Not to be overlooked (perhaps I say “looked over,”) is the final competition in the Ms. Bikes, Blues & BBQ Contest.
About 140 vendors will set up their wares and food in throughout the area.
A free, indoor, air-conditioned beer garden is sure to be a big hit.
The Fayetteville Fire Fighter’s Association Poker Run takes place at 8:00 a.m. Saturday.
And, if you and your sweetie haven’t had a chance to tie the knot, legal weddings will be performed starting at 2:00 p.m. Saturday. Just don’t forget - you will need to obtain an Arkansas Marriage License no later than Friday, Sept. 29th.
The Ozarks in early autumn are simply magnificent. The weather is great and the community welcomes its visitors. Fayetteville is located only six hours from Dallas and St. Louis, five hours from Memphis and Kansas City, and two hours from Tulsa, Oklahoma and Branson, Missouri.
Perhaps best of all, Bikes, Blues & BBQ is a non-profit organization that donates proceeds to area charities. This year, a new Harley Davidson Classic Road King will be raffled off September 30th with proceeds going to the Fayetteville Boys and Girls Club.
In 2005, Bikes, Blues & BBQ raised over $125,000 for local charities. In addition, this rally is good, clean fun. A lot of effort goes into keeping it family friendly and in keeping with community values.
For more information:
http://www.bikesbluesandbbq.org/index.html
IS HOUSING AFFORDABLE AND ATTAINABLE IN NW ARKANSAS?
I am becoming increasingly concerned about the difficulties many working people are encountering in their quest for the American dream – home ownership.
Probably the most important factor is, as I have mentioned previously, wages have not kept up with land and construction costs. But there are additional factors that enter the picture – zoning regulations, density requirements, impact fees, and lack of incentives for developers to build smaller, more affordable homes. Several weeks ago, there was a feature article in the NW Arkansas times about this issue in Fayetteville, but the problem stretches across NW Arkansas.
In Fayetteville, a contributing factor is tree canopy regulations. I agree that an essential part of Fayetteville's flavor is the trees. On the one hand, the rules that developers must follow make sense to me. But conversely, following those rules costs a lot of money that gets added to the sales price of the home.
Impact fees provide the funding for roads, water and sewers, police and fire protection, public parks, etc. No one argues the necessity for this infrastructure but the impact fees add several thousand dollars to the cost of each and every new home built, regardless of the value of the home. Essentially this is a regressive tax. Why not have a sliding scale for impact fees? Lower the fees for an affordable home and increase the fees as the value of home increases.
If NW Arkansas is to continue growing and prospering, we must find a way for the average worker to own an average home. Lack of attainable housing for workers puts serious constraints on growth. Employers cannot fill jobs if the workers cannot afford to live within a reasonable distance of their workplace.
I frequently hear complaints from residents who don’t want lower-cost higher-density neighborhoods built next to their more affluent neighborhood. But let’s face facts, folks, not everyone has a high-paying job. We need people who are willing and able to work at ALL of the available jobs. We need truck drivers to bring food to stores, we need factory workers to build products, we need hospital and restaurant workers, janitors, daycare workers, construction workers, store clerks and thousands of other workers. Without these people, very few of us would want to live here. Let’s be realistic – the average worker needs and wants a home just as much as a more affluent person.
It is imperative that cities establish criteria and develop policies that will encourage and enable builders to build more modest homes. This situation deserves serious consideration and action now. Let’s not waste several more years while we just talk about the problem.
There are many ways to make housing more attainable for working people. Perhaps it’s time to consider neighborhoods with row houses. Or, consider detached homes with less space between each one. Duplexes or quadplexes would be another idea. Built more as permanent homes instead of basic rental units, these multi-unit homes would be affordable because the owners could live in one unit while rental income would provide funds for the mortgage payment.
Condos can be another affordable way to own a home. Developers, especially in Fayetteville, are building condos at a record pace, but I can’t think of any that will be for the average working person. In many other parts of the country condos are affordable and desirable. Building costs are less per square foot, outside maintenance is usually taken care of by the homeowner’s association, and many condo communities share amenities such as a swimming pool that the average person could not otherwise afford.
However, after all this is said, housing is available in NW Arkansas if you know how to find it. Currently, there are some 150 homes available for less than $150,000. This includes lovely, desirable resale homes and even some brand new homes. You can get more information about them by going to my home search websites at http://www.findfayettevillehomes.com/ or http://www.nwarkansashomesearch.com/.
To find out how much home you can afford based on your annual salary, go to http://www.findfayettevillehomes.com/ and click on "Home Buying Calculator" in the Info Center at the right of the home page. Take a look at some of the other information and calculators while you’re there.
I can help you find a home – this is exactly what I do. It’s my full-time career. I am a Accredited Buyer Representative® (ABR®) and I represent buyers at no extra cost (commissions for homes listed by a Realtor® are included in the selling price of the home.)
Contact me at judy@judyluna.com. Helping people find a home they want and can afford is the most satisfying part of my job. I would be happy to help you do the same.
For more information:
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43758
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43754
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43753
Probably the most important factor is, as I have mentioned previously, wages have not kept up with land and construction costs. But there are additional factors that enter the picture – zoning regulations, density requirements, impact fees, and lack of incentives for developers to build smaller, more affordable homes. Several weeks ago, there was a feature article in the NW Arkansas times about this issue in Fayetteville, but the problem stretches across NW Arkansas.
In Fayetteville, a contributing factor is tree canopy regulations. I agree that an essential part of Fayetteville's flavor is the trees. On the one hand, the rules that developers must follow make sense to me. But conversely, following those rules costs a lot of money that gets added to the sales price of the home.
Impact fees provide the funding for roads, water and sewers, police and fire protection, public parks, etc. No one argues the necessity for this infrastructure but the impact fees add several thousand dollars to the cost of each and every new home built, regardless of the value of the home. Essentially this is a regressive tax. Why not have a sliding scale for impact fees? Lower the fees for an affordable home and increase the fees as the value of home increases.
If NW Arkansas is to continue growing and prospering, we must find a way for the average worker to own an average home. Lack of attainable housing for workers puts serious constraints on growth. Employers cannot fill jobs if the workers cannot afford to live within a reasonable distance of their workplace.
I frequently hear complaints from residents who don’t want lower-cost higher-density neighborhoods built next to their more affluent neighborhood. But let’s face facts, folks, not everyone has a high-paying job. We need people who are willing and able to work at ALL of the available jobs. We need truck drivers to bring food to stores, we need factory workers to build products, we need hospital and restaurant workers, janitors, daycare workers, construction workers, store clerks and thousands of other workers. Without these people, very few of us would want to live here. Let’s be realistic – the average worker needs and wants a home just as much as a more affluent person.
It is imperative that cities establish criteria and develop policies that will encourage and enable builders to build more modest homes. This situation deserves serious consideration and action now. Let’s not waste several more years while we just talk about the problem.
There are many ways to make housing more attainable for working people. Perhaps it’s time to consider neighborhoods with row houses. Or, consider detached homes with less space between each one. Duplexes or quadplexes would be another idea. Built more as permanent homes instead of basic rental units, these multi-unit homes would be affordable because the owners could live in one unit while rental income would provide funds for the mortgage payment.
Condos can be another affordable way to own a home. Developers, especially in Fayetteville, are building condos at a record pace, but I can’t think of any that will be for the average working person. In many other parts of the country condos are affordable and desirable. Building costs are less per square foot, outside maintenance is usually taken care of by the homeowner’s association, and many condo communities share amenities such as a swimming pool that the average person could not otherwise afford.
However, after all this is said, housing is available in NW Arkansas if you know how to find it. Currently, there are some 150 homes available for less than $150,000. This includes lovely, desirable resale homes and even some brand new homes. You can get more information about them by going to my home search websites at http://www.findfayettevillehomes.com/ or http://www.nwarkansashomesearch.com/.
To find out how much home you can afford based on your annual salary, go to http://www.findfayettevillehomes.com/ and click on "Home Buying Calculator" in the Info Center at the right of the home page. Take a look at some of the other information and calculators while you’re there.
I can help you find a home – this is exactly what I do. It’s my full-time career. I am a Accredited Buyer Representative® (ABR®) and I represent buyers at no extra cost (commissions for homes listed by a Realtor® are included in the selling price of the home.)
Contact me at judy@judyluna.com. Helping people find a home they want and can afford is the most satisfying part of my job. I would be happy to help you do the same.
For more information:
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43758
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43754
http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=43753
Sunday, August 13, 2006
Existing-Home Sales Flattening, Prices Cooling
It continues to be a buyer’s market. Prices are up only slightly from one year ago and interest rates are still affordable.
Last year sales were at record highs. This year existing home sales (throughout the U.S.) declined 1.3% in June 2006 compared to the previous month. Looking back to June 2005, June sales this year declined 8.9%.
Looking from a different perspective, housing inventory levels nationwide rose 3.8% at the end of June to 3.73 million existing homes available for sale. That represents a 6.8-month supply at the current sales pace. By contrast, in June 2005, there was a tight 4.4-month supply on the market.
It appears to me that the market is stabilizing. I don’t think anyone believed the market could continue sales at the record pace of the past several years.
This is good news for buyers who may have been discouraged by bidding wars during the hot market of the past. Now is a good time for buyers to find the home they want.
When inventories increase, buyers have more choices and more time to comparison shop. Sellers have come to realize they must be more competitive these days.
The above statistical information came from The National Association of Realtors®, report for June 2006.
To read the full report, click on:
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/06JuneEHS
Last year sales were at record highs. This year existing home sales (throughout the U.S.) declined 1.3% in June 2006 compared to the previous month. Looking back to June 2005, June sales this year declined 8.9%.
Looking from a different perspective, housing inventory levels nationwide rose 3.8% at the end of June to 3.73 million existing homes available for sale. That represents a 6.8-month supply at the current sales pace. By contrast, in June 2005, there was a tight 4.4-month supply on the market.
It appears to me that the market is stabilizing. I don’t think anyone believed the market could continue sales at the record pace of the past several years.
This is good news for buyers who may have been discouraged by bidding wars during the hot market of the past. Now is a good time for buyers to find the home they want.
When inventories increase, buyers have more choices and more time to comparison shop. Sellers have come to realize they must be more competitive these days.
The above statistical information came from The National Association of Realtors®, report for June 2006.
To read the full report, click on:
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/06JuneEHS
Wednesday, August 02, 2006
Arkansas Has Budget Surplus of $402 Million
The bad news is: Arkansas has a reputation as a relatively poor state with a long list of needs from roads, sewers, and infrastructure in general to improvements in education, helping the needy, and everything in-between.
The good news is: Arkansas has a budget surplus of more than $402 million for the fiscal year ended June 30, 2006. As you can imagine, everyone wants a piece of the pie.
Many of the ideas are worthy of consideration. Using part of the surplus to create a “rainy day fund” is certainly an excellent idea. Just because income exceeded expenses this year doesn’t necessarily mean next year will as rosy.
Governor Mike Huckabee believes a good portion of the surplus should be refunded to taxpayers. The governor says the refund could be handled in various ways: state income tax reduction, reducing or eliminating the sales tax on food, or even a direct rebate to taxpayers. So far the legislature has been in no hurry to do anything.
Arkansas has become increasingly dependent on the sales tax. Arkansans pay sales tax on just about everything except medical care and prescriptions. The bare essentials - food, clothing, and utilities - are taxed by the state, county, and city. Add those taxes together and you will quickly see that cities such as Fayetteville and Springdale have sales tax rates in excess of 9%.
As we all know, the sales tax is regressive. Poor people need essentials just as much as their more affluent neighbors but they have to pay a proportionately higher percentage of their income for them.
I’ve also heard talk about eliminating the sales tax that manufacturers pay on utilities. Most states do not have a similar tax so this makes Arkansas less attractive to manufacturers who may be considering a move.
Education is another high priority. In recent years, we’ve spent a lot of money for improvements from kindergarten through university levels but capital improvements have been falling through the cracks. It’s reasonable to assume the entire surplus could be spent for education without fulfilling every need.
Other ideas also have merit, especially for NW Arkansas: infrastructure and affordable housing. I have written previously about both subjects but I can’t say it too often. NW Arkansas is in gridlock. New roads, widening of existing roads, toll roads, overpasses, bypasses, etc., no matter what you call it, we need to build it. Large projects such as the Highway 412 bypass are only dreams at this point. Funding does not exist to even buy the land.
NW Arkansas has a growing population of homeless people and affordable housing is practically non-existent. Part of the surplus could be used to help feed and train people so they can get jobs. Then help them with down payments and/or subsidized interest rates to get them off the streets and into housing.
As I understand it, the state used to give turnback funds to the cities, but they have not been awarded since 1986, when cities were allowed to enact local sales taxes to add on to the state sales tax.
Perhaps it is time to turn back some or all or the surplus to the cities to use as they see fit. They know better than the state what is needed at the local level.
While I know it cannot happen, I would love to see the entire surplus sent to NW Arkansas. NW Arkansas’ booming economy helps the entire state. We pay a proportionately higher percentage of taxes to the state than the other areas. We need help with infrastructure now if our economy is to continue expanding.
For more information:
http://www.nwaonline.net/articles/2006/07/06/news/05lrrevenuereport.txt
http://www.nwaonline.net/articles/2006/07/08/news/03lrhuck.txt
http://nwanews.com/bcdr/News/33242/
The good news is: Arkansas has a budget surplus of more than $402 million for the fiscal year ended June 30, 2006. As you can imagine, everyone wants a piece of the pie.
Many of the ideas are worthy of consideration. Using part of the surplus to create a “rainy day fund” is certainly an excellent idea. Just because income exceeded expenses this year doesn’t necessarily mean next year will as rosy.
Governor Mike Huckabee believes a good portion of the surplus should be refunded to taxpayers. The governor says the refund could be handled in various ways: state income tax reduction, reducing or eliminating the sales tax on food, or even a direct rebate to taxpayers. So far the legislature has been in no hurry to do anything.
Arkansas has become increasingly dependent on the sales tax. Arkansans pay sales tax on just about everything except medical care and prescriptions. The bare essentials - food, clothing, and utilities - are taxed by the state, county, and city. Add those taxes together and you will quickly see that cities such as Fayetteville and Springdale have sales tax rates in excess of 9%.
As we all know, the sales tax is regressive. Poor people need essentials just as much as their more affluent neighbors but they have to pay a proportionately higher percentage of their income for them.
I’ve also heard talk about eliminating the sales tax that manufacturers pay on utilities. Most states do not have a similar tax so this makes Arkansas less attractive to manufacturers who may be considering a move.
Education is another high priority. In recent years, we’ve spent a lot of money for improvements from kindergarten through university levels but capital improvements have been falling through the cracks. It’s reasonable to assume the entire surplus could be spent for education without fulfilling every need.
Other ideas also have merit, especially for NW Arkansas: infrastructure and affordable housing. I have written previously about both subjects but I can’t say it too often. NW Arkansas is in gridlock. New roads, widening of existing roads, toll roads, overpasses, bypasses, etc., no matter what you call it, we need to build it. Large projects such as the Highway 412 bypass are only dreams at this point. Funding does not exist to even buy the land.
NW Arkansas has a growing population of homeless people and affordable housing is practically non-existent. Part of the surplus could be used to help feed and train people so they can get jobs. Then help them with down payments and/or subsidized interest rates to get them off the streets and into housing.
As I understand it, the state used to give turnback funds to the cities, but they have not been awarded since 1986, when cities were allowed to enact local sales taxes to add on to the state sales tax.
Perhaps it is time to turn back some or all or the surplus to the cities to use as they see fit. They know better than the state what is needed at the local level.
While I know it cannot happen, I would love to see the entire surplus sent to NW Arkansas. NW Arkansas’ booming economy helps the entire state. We pay a proportionately higher percentage of taxes to the state than the other areas. We need help with infrastructure now if our economy is to continue expanding.
For more information:
http://www.nwaonline.net/articles/2006/07/06/news/05lrrevenuereport.txt
http://www.nwaonline.net/articles/2006/07/08/news/03lrhuck.txt
http://nwanews.com/bcdr/News/33242/
Affordable Housing
Recent studies indicate that the term “affordable housing” is becoming an oxymoron.
The National Association of Realtors® surveyed 1000 people in June 2006. By a 2-1 ratio, respondents believed that high monthly payments were the biggest obstacle to buying a home.
The perception used to be that the down payment and closing costs were the biggest obstacles to home ownership. Now people are worried that monthly income cannot be stretched to meet monthly bills.
In addition to the mortgage payment itself, people worry about the cost of putting gasoline in their car, the ever-increasing price of utilities, rising property taxes, escalating healthcare costs, and higher insurance premiums.
If they have an adjustable rate mortgage, they know that soon that payment will also be higher.
For Middle Americans, home ownership is not only their dream but also the surest way to build wealth. Many feel that dream is no longer reachable.
The hurdles to home ownership are complex. However, Los Angeles Mayor Antonio Villaraigosa succinctly summed up a large part of the problem, “…the fact that wages haven't kept up with the cost of real estate." While average hourly wages have risen about 20% since 2000, the national median home price has soared 55%.
Another large part of the problem is escalating land prices in most of the country, and NW Arkansas is no exception. Even as recently as 3-4 years ago, a few local builders were still building so-called "starter" homes. These were somewhat basic, but usually had about 1000-1200 square feet, 3 bedrooms, 2 baths, and ceramic tile in the wet areas. These were usually available in outlying areas like Elkins and other smaller towns. Even in some of the major towns, there were homes for under $100,000. I can remember some new homes costing even significantly less than that.
Builders are no longer able to build “starter homes.” Because land is so expensive, builders are forced to build a larger home on a smaller lot and charge more for it. The new "affordable" homes start at about $150K to $160K in the major towns of NW Arkansas, although it is possible to purchase a less expensive, smaller home in some of the outlying areas, such as Siloam Springs, Lincoln, and Gravette, etc.
Another reason for higher home prices is the impact fees many communities charge to help pay for everything from roads and sewers to police and fire protection to parks and other municipal facilities. The fees, which amount to several thousands of dollars, are passed on to the homebuyer.
Thus, for people of modest means, increasingly this means they must choose whether to live in their own home farther from their work or pay rent and live closer. But with gas prices so high, living farther away means extra transportation costs and that increases monthly expenses. People who would have purchased a home in the past no longer qualify for these more expensive homes.
In the meantime, the glut of high-end homes continues.
For more information:
http://realtytimes.com/rtmcrcond/Arkansas~Springdale~judyluna
http://www.realtor.org/housopp.nsf/pages/pulsesurvey2006
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/NatlHsgOpPulseSurvey
http://www.usatoday.com/money/economy/housing/2006-06-26-affordable-homes-usat_x.htm
The National Association of Realtors® surveyed 1000 people in June 2006. By a 2-1 ratio, respondents believed that high monthly payments were the biggest obstacle to buying a home.
The perception used to be that the down payment and closing costs were the biggest obstacles to home ownership. Now people are worried that monthly income cannot be stretched to meet monthly bills.
In addition to the mortgage payment itself, people worry about the cost of putting gasoline in their car, the ever-increasing price of utilities, rising property taxes, escalating healthcare costs, and higher insurance premiums.
If they have an adjustable rate mortgage, they know that soon that payment will also be higher.
For Middle Americans, home ownership is not only their dream but also the surest way to build wealth. Many feel that dream is no longer reachable.
The hurdles to home ownership are complex. However, Los Angeles Mayor Antonio Villaraigosa succinctly summed up a large part of the problem, “…the fact that wages haven't kept up with the cost of real estate." While average hourly wages have risen about 20% since 2000, the national median home price has soared 55%.
Another large part of the problem is escalating land prices in most of the country, and NW Arkansas is no exception. Even as recently as 3-4 years ago, a few local builders were still building so-called "starter" homes. These were somewhat basic, but usually had about 1000-1200 square feet, 3 bedrooms, 2 baths, and ceramic tile in the wet areas. These were usually available in outlying areas like Elkins and other smaller towns. Even in some of the major towns, there were homes for under $100,000. I can remember some new homes costing even significantly less than that.
Builders are no longer able to build “starter homes.” Because land is so expensive, builders are forced to build a larger home on a smaller lot and charge more for it. The new "affordable" homes start at about $150K to $160K in the major towns of NW Arkansas, although it is possible to purchase a less expensive, smaller home in some of the outlying areas, such as Siloam Springs, Lincoln, and Gravette, etc.
Another reason for higher home prices is the impact fees many communities charge to help pay for everything from roads and sewers to police and fire protection to parks and other municipal facilities. The fees, which amount to several thousands of dollars, are passed on to the homebuyer.
Thus, for people of modest means, increasingly this means they must choose whether to live in their own home farther from their work or pay rent and live closer. But with gas prices so high, living farther away means extra transportation costs and that increases monthly expenses. People who would have purchased a home in the past no longer qualify for these more expensive homes.
In the meantime, the glut of high-end homes continues.
For more information:
http://realtytimes.com/rtmcrcond/Arkansas~Springdale~judyluna
http://www.realtor.org/housopp.nsf/pages/pulsesurvey2006
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/NatlHsgOpPulseSurvey
http://www.usatoday.com/money/economy/housing/2006-06-26-affordable-homes-usat_x.htm
Monday, July 24, 2006
New High Schools in NW Arkansas
Springdale School District opened a second high school, Har-Ber High School, last year and drew new attendance boundary lines. It is a top-notch facility and one which the students, faculty and taxpayers can be justly proud. Another new high school is in the works for the east side of town.
Bentonville has already built a new high school to replace its older school and is studying future needs to keep up with growth in the district. It, too, is a first-class school.
Rogers has a new high school and is already planning another.
Prairie Grove just completed its inaugural year in a new high school after turning the older one into a middle school.
In Lincoln, city council and school district officials are studying the possibility of building a combined facility. As far as I know, that idea is new to NW Arkansas and might make a lot of sense in a small city such as Lincoln. For instance, they could reduce construction costs and save money sharing meeting rooms, maintenance and janitorial staff, etc. It’s a concept that certainly deserves study.
Farmington School District will ask voters in September to approve a 3.55 millage increase to build a new elementary school and purchase land for a new high school to be built in the future. If the measure passes, Farmington School District’s millage rate will rise to 43.85 mills - one of the highest tax rates in NW Arkansas. (Fayetteville’s millage rate is currently 43.80.)
For some months now, the Fayetteville School Board has been discussing how to keep up with growth.
Fayetteville High School had approximately 2000 students in 2005-06. Room exists to squeeze in an additional 400-500 students – but that would be far from ideal. Some programs are already squeezed past limits and the cafeteria is much too small.
The board has to decide whether to build a new high school to replace the old one, or do as Springdale did, and build a second one and continue using the existing high school. There is much to consider. Certainly cost and location are near the top of the list but education of the students must be the highest priority.
If the decision is two high schools, emotions enter the picture. Who will get to go to the new school and who must remain at the old facility? Will the quality of the education be equal? Will the value of real estate increase near a new school while values decrease around the closed high school?
In 2005 the district purchased 79 acres of land in northwest Fayetteville and is considering buying an adjacent 22 acres. Apparently, the rule of thumb these days calls for 100 acres to build a first-class high school and associated facilities.
There have been comments about the distance from downtown Fayetteville and more southern parts of the city, but even if 100 acres could be found close in, the cost would be prohibitive.
New schools are expensive. Some estimates put the cost of a new high school at $50 million. I don’t see how a new school can be built without a millage increase but Fayetteville voters have a recent history of defeating bond elections.
Fayetteville school officials are interested in hearing from citizens. Input is needed. It will probably be five years before construction begins. That sounds like a long time but formulating plans and raising money takes time.
I recommend staying informed and getting involved in the process. Go to meetings and help formulate intelligent decisions. The future of Fayetteville is at stake.
For more information:
http://www.uaex.edu/Other_Areas/publications/PDF/FSCDC-16.pdf#search='arkansasmillagerates
http://www.nwanews.com/nwat/News/42163/
http://www.nwanews.com/nwat/News/41407/
http://www.nwanews.com/nwat/News/40911/
http://www.nwaonline.net/articles/2006/07/11/news/09bzboardsession.txt
http://www.nwaonline.net/articles/2006/07/11/news/06fzlincoln.txt
Bentonville has already built a new high school to replace its older school and is studying future needs to keep up with growth in the district. It, too, is a first-class school.
Rogers has a new high school and is already planning another.
Prairie Grove just completed its inaugural year in a new high school after turning the older one into a middle school.
In Lincoln, city council and school district officials are studying the possibility of building a combined facility. As far as I know, that idea is new to NW Arkansas and might make a lot of sense in a small city such as Lincoln. For instance, they could reduce construction costs and save money sharing meeting rooms, maintenance and janitorial staff, etc. It’s a concept that certainly deserves study.
Farmington School District will ask voters in September to approve a 3.55 millage increase to build a new elementary school and purchase land for a new high school to be built in the future. If the measure passes, Farmington School District’s millage rate will rise to 43.85 mills - one of the highest tax rates in NW Arkansas. (Fayetteville’s millage rate is currently 43.80.)
For some months now, the Fayetteville School Board has been discussing how to keep up with growth.
Fayetteville High School had approximately 2000 students in 2005-06. Room exists to squeeze in an additional 400-500 students – but that would be far from ideal. Some programs are already squeezed past limits and the cafeteria is much too small.
The board has to decide whether to build a new high school to replace the old one, or do as Springdale did, and build a second one and continue using the existing high school. There is much to consider. Certainly cost and location are near the top of the list but education of the students must be the highest priority.
If the decision is two high schools, emotions enter the picture. Who will get to go to the new school and who must remain at the old facility? Will the quality of the education be equal? Will the value of real estate increase near a new school while values decrease around the closed high school?
In 2005 the district purchased 79 acres of land in northwest Fayetteville and is considering buying an adjacent 22 acres. Apparently, the rule of thumb these days calls for 100 acres to build a first-class high school and associated facilities.
There have been comments about the distance from downtown Fayetteville and more southern parts of the city, but even if 100 acres could be found close in, the cost would be prohibitive.
New schools are expensive. Some estimates put the cost of a new high school at $50 million. I don’t see how a new school can be built without a millage increase but Fayetteville voters have a recent history of defeating bond elections.
Fayetteville school officials are interested in hearing from citizens. Input is needed. It will probably be five years before construction begins. That sounds like a long time but formulating plans and raising money takes time.
I recommend staying informed and getting involved in the process. Go to meetings and help formulate intelligent decisions. The future of Fayetteville is at stake.
For more information:
http://www.uaex.edu/Other_Areas/publications/PDF/FSCDC-16.pdf#search='arkansasmillagerates
http://www.nwanews.com/nwat/News/42163/
http://www.nwanews.com/nwat/News/41407/
http://www.nwanews.com/nwat/News/40911/
http://www.nwaonline.net/articles/2006/07/11/news/09bzboardsession.txt
http://www.nwaonline.net/articles/2006/07/11/news/06fzlincoln.txt
Friday, July 21, 2006
Baseball for Springdale
Sometimes life throws us a curve ball and by so doing, makes everyone sit up and pay attention.
The City of Springdale’s election on July 11, 2006, had three questions on the ballot and the results made a lot of people pay attention. Voters approved all three, thereby paying off one bond program, starting a new bond program, and building a baseball stadium.
The first two questions regarded funding for street improvements. Not surprisingly, voters gave permission to extend the 1% sales tax to pay for much-needed improvements. Springdale, in general, has been doing a phenomenal job in this regard – much better than some of the other communities in NW Arkansas. Springdale planners seem to understand the need to improve infrastructure. Drivers will be much happier when three east-west connector roads are built, carrying traffic across the north, central, and southern parts of the city to alleviate the congestion on Highway 412.
The surprising thing, I think, was approval of a $50 million bond for land acquisition and construction of a 6,000-seat stadium for a minor league baseball team. Plans call for the stadium to be built in the southwestern part of the city, west of I-540 and south of 412.
If you have ever said something to the effect, “I have only one vote, why bother going to the polls,” you might want to reconsider that in the future. The stadium vote passed by 15 votes: 2408 for; 2393 against. In other words, more than 20,000 registered voters cast less than 6,000 votes!
As a former teacher of American Government classes at Northwest Arkansas Community College, I applaud those who got out to express their opinion on the issue. At the same time, I can’t help scolding those who didn’t bother to vote.
$50 million for a baseball stadium is a lot of money by anyone’s standards. The close vote showed that opinion is extremely divided. Those in favor of the stadium have gained the day, but it's a risky proposition for the city of Springdale. The city may or may not ever directly recoup that outlay. However, the indirect benefits could be immeasurable.
When I first moved to NW Arkansas and former friends asked me about the area, I described it as "suburbia without a central city." Each of the communities, as they formerly existed before the extreme urbanization now taking place, had a particular personality. Fayetteville was the college town and cultural center. Rogers had Beaver Lake (and now the new mall), and Bentonville had the Wal-Mart Headquarters.
Although Springdale had the Tyson Foods headquarters, its identity had largely fallen between the cracks. People frequently described it to me as the "working class" town just north of Fayetteville. As such, it never really had a special identity, except its association with the poultry industry (for example, the "Featherfest" celebration each year) or the site of the Rodeo each July.
It is quite possible that the baseball stadium could help create a special identity for Springdale in the "new" scheme of things in NW Arkansas. Sports, at all levels, are very important – recreationally and economically.
In one sense, the U of A Razorbacks have become such a phenomenon in the area (for all sports) because there were no other sports alternatives. The University fields good teams even by national standards, and there have been some great seasons. For example, back in the mid-90s the basketball team got to the "Final Four" and even competed for the NCAA championship, and the track team is well respected nationwide because of its coach, John McDonnell.
College sports are, in some ways, very exciting because the players are not professionals. School spirit enhances the excitement of the game. Witness, for example, the US Olympic hockey team which beat the Russians about 20 years ago for the first time in years – that team was comprised largely of hockey players from the University of Minnesota. Those guys got a hero's welcome (even a ticker tape parade in the middle of winter) when they returned to Minnesota, and with good reason.
The devotion of the fans (and alumni) here is incredible. It goes beyond school spirit. There are tail-gate parties and other activities, just like for major professional teams in cities across the country. The RV park in south Fayetteville looks like “Razorbackville” on any night before a big game with neon Razorback signs, etc. Cars with Razorback flags fill the streets.
Plano, Texas, a suburb of Dallas, became known for their great sports programs, and although Springdale is hardly Plano, there is something to be said for good sports teams. I have had people relocating to the area who want to live in Springdale because the Springdale High School sports teams have a great reputation, and they want their talented sports-minded children to have good coaching and opportunities.
But professional sports teams frequently have a tougher time of it. It has been widely rumored that The Wichita Wranglers, an affiliate of the Kansas City Royals, is the targeted team. No contracts have been signed and at this point, it appears the City of Wichita is anxious to keep the Wranglers from leaving. The team’s record is far from stellar, attendance at games has been dropping, the stadium is very old and in need of improvements, but the city fathers don’t want to lose their baseball team.
For a small town like Springdale, gaining a minor league team could be just what a town without an identity needs. As NW Arkansas grows into a major metropolitan area, Springdale could capitalize on its image as the "sports" town and provide alternatives to the Razorbacks. Perhaps a move would also provide the impetus for the Wranglers to improve their performance. Much will depend on attendance at the games.
Just as they have done with roads, the city planners in Springdale are again looking ahead far beyond the present and are to be applauded for their efforts and vision for the future.
For more information:
http://www.nwaonline.net/articles/2006/07/09/news/03azroadbond.txt
http://www.nwaonline.net/articles/2006/07/09/sports/08azfaq.txt
http://www.nwaonline.net/articles/2006/07/09/sports/01azballpark.txt
http://www.nwanews.com/nwat/Editorial/42730/
http://www.nwanews.com/adg/Sports/160355/
http://www.nwanews.com/adg/News/160984/
The City of Springdale’s election on July 11, 2006, had three questions on the ballot and the results made a lot of people pay attention. Voters approved all three, thereby paying off one bond program, starting a new bond program, and building a baseball stadium.
The first two questions regarded funding for street improvements. Not surprisingly, voters gave permission to extend the 1% sales tax to pay for much-needed improvements. Springdale, in general, has been doing a phenomenal job in this regard – much better than some of the other communities in NW Arkansas. Springdale planners seem to understand the need to improve infrastructure. Drivers will be much happier when three east-west connector roads are built, carrying traffic across the north, central, and southern parts of the city to alleviate the congestion on Highway 412.
The surprising thing, I think, was approval of a $50 million bond for land acquisition and construction of a 6,000-seat stadium for a minor league baseball team. Plans call for the stadium to be built in the southwestern part of the city, west of I-540 and south of 412.
If you have ever said something to the effect, “I have only one vote, why bother going to the polls,” you might want to reconsider that in the future. The stadium vote passed by 15 votes: 2408 for; 2393 against. In other words, more than 20,000 registered voters cast less than 6,000 votes!
As a former teacher of American Government classes at Northwest Arkansas Community College, I applaud those who got out to express their opinion on the issue. At the same time, I can’t help scolding those who didn’t bother to vote.
$50 million for a baseball stadium is a lot of money by anyone’s standards. The close vote showed that opinion is extremely divided. Those in favor of the stadium have gained the day, but it's a risky proposition for the city of Springdale. The city may or may not ever directly recoup that outlay. However, the indirect benefits could be immeasurable.
When I first moved to NW Arkansas and former friends asked me about the area, I described it as "suburbia without a central city." Each of the communities, as they formerly existed before the extreme urbanization now taking place, had a particular personality. Fayetteville was the college town and cultural center. Rogers had Beaver Lake (and now the new mall), and Bentonville had the Wal-Mart Headquarters.
Although Springdale had the Tyson Foods headquarters, its identity had largely fallen between the cracks. People frequently described it to me as the "working class" town just north of Fayetteville. As such, it never really had a special identity, except its association with the poultry industry (for example, the "Featherfest" celebration each year) or the site of the Rodeo each July.
It is quite possible that the baseball stadium could help create a special identity for Springdale in the "new" scheme of things in NW Arkansas. Sports, at all levels, are very important – recreationally and economically.
In one sense, the U of A Razorbacks have become such a phenomenon in the area (for all sports) because there were no other sports alternatives. The University fields good teams even by national standards, and there have been some great seasons. For example, back in the mid-90s the basketball team got to the "Final Four" and even competed for the NCAA championship, and the track team is well respected nationwide because of its coach, John McDonnell.
College sports are, in some ways, very exciting because the players are not professionals. School spirit enhances the excitement of the game. Witness, for example, the US Olympic hockey team which beat the Russians about 20 years ago for the first time in years – that team was comprised largely of hockey players from the University of Minnesota. Those guys got a hero's welcome (even a ticker tape parade in the middle of winter) when they returned to Minnesota, and with good reason.
The devotion of the fans (and alumni) here is incredible. It goes beyond school spirit. There are tail-gate parties and other activities, just like for major professional teams in cities across the country. The RV park in south Fayetteville looks like “Razorbackville” on any night before a big game with neon Razorback signs, etc. Cars with Razorback flags fill the streets.
Plano, Texas, a suburb of Dallas, became known for their great sports programs, and although Springdale is hardly Plano, there is something to be said for good sports teams. I have had people relocating to the area who want to live in Springdale because the Springdale High School sports teams have a great reputation, and they want their talented sports-minded children to have good coaching and opportunities.
But professional sports teams frequently have a tougher time of it. It has been widely rumored that The Wichita Wranglers, an affiliate of the Kansas City Royals, is the targeted team. No contracts have been signed and at this point, it appears the City of Wichita is anxious to keep the Wranglers from leaving. The team’s record is far from stellar, attendance at games has been dropping, the stadium is very old and in need of improvements, but the city fathers don’t want to lose their baseball team.
For a small town like Springdale, gaining a minor league team could be just what a town without an identity needs. As NW Arkansas grows into a major metropolitan area, Springdale could capitalize on its image as the "sports" town and provide alternatives to the Razorbacks. Perhaps a move would also provide the impetus for the Wranglers to improve their performance. Much will depend on attendance at the games.
Just as they have done with roads, the city planners in Springdale are again looking ahead far beyond the present and are to be applauded for their efforts and vision for the future.
For more information:
http://www.nwaonline.net/articles/2006/07/09/news/03azroadbond.txt
http://www.nwaonline.net/articles/2006/07/09/sports/08azfaq.txt
http://www.nwaonline.net/articles/2006/07/09/sports/01azballpark.txt
http://www.nwanews.com/nwat/Editorial/42730/
http://www.nwanews.com/adg/Sports/160355/
http://www.nwanews.com/adg/News/160984/
Wednesday, July 19, 2006
Sidewalk Cafes in Fayetteville
There is a proposal before the Fayetteville city council to allow sidewalk cafes on public sidewalks. What a wonderful idea! This would definitely add to the idea of making central Fayetteville a vibrant place where people could walk to work, leisure, and social activities.
Picture, if you will, some colorful umbrellas shading tables and chairs along the sidewalk where people are enjoying coffee or food. Some people are talking with friends while others are reading or taking a break from shopping. Doesn’t that image make you feel relaxed and comfortable?
One concern about sidewalk cafes is whether there is enough room on Dickson Street’s existing sidewalks. Closing several blocks in the area east of West Avenue to vehicular traffic and converting that section into a “walking street” could easily resolve this concern. Business for the shops and restaurants would actually be enhanced because people would be on foot, rather than just driving by in their cars. Pedestrians could walk safely in the street while the sidewalks were used as cafes.
In Latin America, it is quite common for a "shopping street" to be a "walking street." Examples can be found in Santiago, Chile, and Tegucigalpa, Honduras, among other major Latin American cities. These streets are always full of people, and businesses compete to get frontage on these streets because of the advantages of having pedestrians rather than vehicles pass by.
A similar concept occurred years ago in Minneapolis when the primary shopping street was closed to all vehicular traffic, except busses.
I say, “Let’s go for it!”
http://www.nwarktimes.com/nwat/News/42504/
Picture, if you will, some colorful umbrellas shading tables and chairs along the sidewalk where people are enjoying coffee or food. Some people are talking with friends while others are reading or taking a break from shopping. Doesn’t that image make you feel relaxed and comfortable?
One concern about sidewalk cafes is whether there is enough room on Dickson Street’s existing sidewalks. Closing several blocks in the area east of West Avenue to vehicular traffic and converting that section into a “walking street” could easily resolve this concern. Business for the shops and restaurants would actually be enhanced because people would be on foot, rather than just driving by in their cars. Pedestrians could walk safely in the street while the sidewalks were used as cafes.
In Latin America, it is quite common for a "shopping street" to be a "walking street." Examples can be found in Santiago, Chile, and Tegucigalpa, Honduras, among other major Latin American cities. These streets are always full of people, and businesses compete to get frontage on these streets because of the advantages of having pedestrians rather than vehicles pass by.
A similar concept occurred years ago in Minneapolis when the primary shopping street was closed to all vehicular traffic, except busses.
I say, “Let’s go for it!”
http://www.nwarktimes.com/nwat/News/42504/
Sunday, July 09, 2006
Bus Ridership is Increasing in NW Arkansas
I was pleased to read in the Northwest Arkansas Times newspaper that more people are using public transportation to get where they want to go. Of course, that isn’t a big surprise given the high cost of gasoline these days. As I write, gas in our area is averaging about $2.90 a gallon. Add that to all the other costs of driving a vehicle and it’s easy to understand why bus ridership is increasing.
But gas prices aren’t the only reason ridership is up. Ozark Regional Transit deserves a pat on the back for expanding service. Ozark currently has seven fixed routes serving 110 square miles. As they are able to obtain more funding, Ozark plans to increase the areas they serve.
I sincerely hope this trend will continue. Commuters face gridlock twice a day just trying to get back and forth to their work places. Even in the non-commuting hours of the day it’s not unusual to face traffic delays as people go about their shopping, appointments, and general business of the day. No one enjoys gridlock. It creates more stress on both people and the environment.
I have stressed for several years the need for a good public transportation system in NW Arkansas. Yes, I know it’s not nearly as bad here as New York or Los Angeles or many other large cities, but we need to make sure it doesn’t get that bad. Reliable bus service with a good route system and frequent trips will be a big plus for this area.
If people can rely on the bus to get them where they want to go in a reasonable amount of time, bus ridership will undoubtedly increase.
For more information:
Ozark Regional Transportation, http://www.ozark.org
http://www.nwanews.com/nwat/News/42137/
But gas prices aren’t the only reason ridership is up. Ozark Regional Transit deserves a pat on the back for expanding service. Ozark currently has seven fixed routes serving 110 square miles. As they are able to obtain more funding, Ozark plans to increase the areas they serve.
I sincerely hope this trend will continue. Commuters face gridlock twice a day just trying to get back and forth to their work places. Even in the non-commuting hours of the day it’s not unusual to face traffic delays as people go about their shopping, appointments, and general business of the day. No one enjoys gridlock. It creates more stress on both people and the environment.
I have stressed for several years the need for a good public transportation system in NW Arkansas. Yes, I know it’s not nearly as bad here as New York or Los Angeles or many other large cities, but we need to make sure it doesn’t get that bad. Reliable bus service with a good route system and frequent trips will be a big plus for this area.
If people can rely on the bus to get them where they want to go in a reasonable amount of time, bus ridership will undoubtedly increase.
For more information:
Ozark Regional Transportation, http://www.ozark.org
http://www.nwanews.com/nwat/News/42137/
Condo Mania in NW Arkansas--How Many is Too Many?
The debate has now been settled over whether the Divinity Hotel and Condos project can become reality. The newly-approved Divinity development has roused much controversy because of its size and scale in comparison to existing buildings in central Fayetteville. Its plans call for 30 condos and 137 hotel rooms above commercial space and restaurants.
A few years ago there wasn't a condo for sale in Fayetteville but that changed rapidly as developers began turning everything available into condos in central Fayetteville.
With the new mixed-use zoning plan expected to be approved soon, city planners anticipate turning Fayetteville into a "real city" with shops and commercial entities on the first floors of some of the new construction buildings, with condos upstairs.
There is already one large building under construction behind Dickson Street, and many older buildings have been already turned into condos, including the UArk Bowl, St. Joseph's Catholic Church and School, and others in the Dickson Street area.
Thanks in part to tax incremental financing (TIF), the abandoned Mountain Inn has been demolished and a new building has been approved for the site, conforming to the city's new guidelines. It will be known as the Renaissance building and its 18 stories will house a Marriott Hotel and condos.
The 9-story Lofts at Underwood Plaza is another new condo project located right on the square in Fayetteville. And the Legacy building is already underway, bringing 37 new condos to the Dickson Street area.
In addition, an apartment complex behind the NW Arkansas Mall (formerly Bristol Gardens, now called the Reserve at Steele Crossing) has gone through a condo-conversion and sales are underway. And there are new condos on Zion Road east of the mall for sale.
The problem is that land prices, especially in town, have risen so high that these condos are undoubtedly for an affluent group of people. The latest project to come before city planners calls for 20 condos, retail space and parking on a piece of land that is less than 1 acre in size. The land and existing building, which will be demolished, sold this year for $980,000.
Condos currently on the market in central Fayetteville are listed at close to $200 per square foot—certainly not for the average working person. Granted, many retirees who might be downsizing may have the money to pay these prices, as may some young, well-paid professionals who want to be within walking distance of restaurants and nightlife on Dickson Street.
I'm not arguing with the concept proposed by the planning commission--a vibrant center city where commercial entities are within walking distance. It's just that it seems that no one has asked the question, "will there be too many condos as a result"? Can Fayetteville's population absorb this large number of expensive multi-family units downtown?
A similar pattern is occurring in Benton County. Many condo complexes are being constructed in Rogers, and a development calling for three 15-story condos has been proposed for the shores of Beaver Lake. Much opposition has occurred for this project, leading to a question about what kind of development should occur near the lake.
A lesson could be learned from the folks in the Lake Tahoe area back in the 70s and 80s as lakefront condos proliferated. The pristine natural beauty was destroyed in some places due to lakefront condo complexes.
If you are concerned about condos, building heights, lakefront development or any other aspect of life in NW Arkansas, I urge you to make your voice heard. Stay informed, go to meetings, and take a stand. Your opinion counts.
For more information:
http://www.nwarktimes.com/nwat/News/42328/
http://www.nwarktimes.com/nwat/News/41377/
http://www.nwanews.com/adg/Business_Matters/153398/
http://www.nwanews.com/nwat/News/42544/
http://www.nwarktimes.com/nwat/News/42366/
http://www.nwaonline.net/articles/2006/07/01/news/01bzcondosuit.txt
http://www.gill-law.com/assets/pdfs/Article_TIF%20Financing%2007%2008%2004.pdf#search='mountaininnfayetteville'
A few years ago there wasn't a condo for sale in Fayetteville but that changed rapidly as developers began turning everything available into condos in central Fayetteville.
With the new mixed-use zoning plan expected to be approved soon, city planners anticipate turning Fayetteville into a "real city" with shops and commercial entities on the first floors of some of the new construction buildings, with condos upstairs.
There is already one large building under construction behind Dickson Street, and many older buildings have been already turned into condos, including the UArk Bowl, St. Joseph's Catholic Church and School, and others in the Dickson Street area.
Thanks in part to tax incremental financing (TIF), the abandoned Mountain Inn has been demolished and a new building has been approved for the site, conforming to the city's new guidelines. It will be known as the Renaissance building and its 18 stories will house a Marriott Hotel and condos.
The 9-story Lofts at Underwood Plaza is another new condo project located right on the square in Fayetteville. And the Legacy building is already underway, bringing 37 new condos to the Dickson Street area.
In addition, an apartment complex behind the NW Arkansas Mall (formerly Bristol Gardens, now called the Reserve at Steele Crossing) has gone through a condo-conversion and sales are underway. And there are new condos on Zion Road east of the mall for sale.
The problem is that land prices, especially in town, have risen so high that these condos are undoubtedly for an affluent group of people. The latest project to come before city planners calls for 20 condos, retail space and parking on a piece of land that is less than 1 acre in size. The land and existing building, which will be demolished, sold this year for $980,000.
Condos currently on the market in central Fayetteville are listed at close to $200 per square foot—certainly not for the average working person. Granted, many retirees who might be downsizing may have the money to pay these prices, as may some young, well-paid professionals who want to be within walking distance of restaurants and nightlife on Dickson Street.
I'm not arguing with the concept proposed by the planning commission--a vibrant center city where commercial entities are within walking distance. It's just that it seems that no one has asked the question, "will there be too many condos as a result"? Can Fayetteville's population absorb this large number of expensive multi-family units downtown?
A similar pattern is occurring in Benton County. Many condo complexes are being constructed in Rogers, and a development calling for three 15-story condos has been proposed for the shores of Beaver Lake. Much opposition has occurred for this project, leading to a question about what kind of development should occur near the lake.
A lesson could be learned from the folks in the Lake Tahoe area back in the 70s and 80s as lakefront condos proliferated. The pristine natural beauty was destroyed in some places due to lakefront condo complexes.
If you are concerned about condos, building heights, lakefront development or any other aspect of life in NW Arkansas, I urge you to make your voice heard. Stay informed, go to meetings, and take a stand. Your opinion counts.
For more information:
http://www.nwarktimes.com/nwat/News/42328/
http://www.nwarktimes.com/nwat/News/41377/
http://www.nwanews.com/adg/Business_Matters/153398/
http://www.nwanews.com/nwat/News/42544/
http://www.nwarktimes.com/nwat/News/42366/
http://www.nwaonline.net/articles/2006/07/01/news/01bzcondosuit.txt
http://www.gill-law.com/assets/pdfs/Article_TIF%20Financing%2007%2008%2004.pdf#search='mountaininnfayetteville'
Tuesday, July 04, 2006
Licensed Realtor® vs. For-Sale-By-Owner – Which Would You Rather Do?
A few Arkansas Realtors® have recently begun an effort to introduce legislation that would prohibit property owners from selling a home without contracting with a Realtor®.
I don't necessarily agree with the proposed law. Americans have traditionally been free to make their own decisions, right or wrong, and certainly property ownership is no exception. In fact, property rights were some of the basic rights the founding fathers of our nation valued. An early version of the “Declaration of Independence” stated the rights of the colonists to “life, liberty, and property” instead of the final version of “life, liberty and the pursuit of happiness.”
On the other hand, there are many reasons to use the services of a Realtor®, some of which are so plain to see that I can’t understand why a buyer or seller would even consider trying to go it alone:
1. A person becomes a licensed Realtor® only after studying all the applicable laws, being tested on that knowledge, and continuing his/her education annually. Most Realtors® also seek advanced education resulting in designations such as Accredited Buyer Representative (ABR®), Certified Residential Specialist (CRS) and others. These designations require experience (a minimum number of transactions) as well as many courses to improve their knowledge to better serve their clients.
2. An experienced Realtor® knows the market inside and out and provides valuable advice to both buyers and sellers.
3. Most real estate agents primarily function as problem solvers. They provide a valuable buffer between buyer and seller to negotiate terms and solve problems without acrimony and to achieve a "win-win" situation for both sides. A lot of things can go wrong in a real estate transaction--from problems discovered during the home inspection, to problems with financing, to simple things like seeing that keys are delivered to the new owner. I don’t have enough space here to tell you about all the “fires” I’ve had to put out at the last minute to prevent a sale from collapsing.
4. Realtors® must comply with Fair Housing laws but owners selling their own property are exempt from the same laws.
5. Studies from the National Association of Realtors® have shown that for-sale-by-owners often receive less in net proceeds from the sale of their home than they would have if they had used a Realtor®--even after paying the commission. According to the National Association of Realtors®, in 2005 the median price of FSBO homes was $198,200 while the median price of agent-assisted home sales was $230,000.
6. Having a Realtor® saves a lot of time and trouble for a seller. The real estate professional will market the home, make valuable suggestions on presentation to help the home sell faster, assist with the complicated paperwork, and provide current data on home sales in order to price the home appropriately. Plus, because there will be a lock box on the home, the seller doesn’t have to go rushing home during his lunch hour to show it.
I don't argue with the right of a seller to sell his home himself. But as a buyer, I wouldn't even look at that home without the help of a buyer agent. How could I be sure that the person selling the home knows what he is doing? I would want to be assured of a clear title to the property. Would I know how to negotiate any necessary repairs? What if the seller would not cooperate in having the property inspected or properly repaired? What if the inspection discovers something so drastically wrong with the property that I ultimately don't want to buy it? Will the seller give my earnest money back or will I have to seek legal assistance?
For Sale By Owner (FSBO) sellers often think just getting their home on the Internet, putting a sign in the yard and ads in the paper, as well as having an open house, are all it takes to sell it. That is far from reality because:
1. Most buyers now have buyer representatives. This is especially important in NW Arkansas where many people are being transferred in (or out) because of employment. Most people relocating here do not pick up the newspaper to look for FSBOs or even look at FSBO websites. They get a buyer’s agent who knows the market and neighborhoods which will meet their family’s needs.
2. When the buyer’s agent looks for properties to show his buyer, he looks in the Multiple Listing Service. FSBO homes are not in the MLS.
3. People actively seeking a FSBO are few. According to statistics from NAR (National Association of Realtors®), 77% of homebuyers in 2005 purchased their home with a real estate agent, and 1/3 of For Sale By Owner homes were sold to someone the seller already knew.
4. Buyer’s agents bring qualified buyers to the table. Usually there is an interview process whereby the buyer’s agent assures that the buyer is able to get a loan to purchase the home. Many people who seek For Sale By Owner properties are those who ask for owner financing or other options because their credit is shaky.
5. Most important, the process of buying a home is a complicated one. The purchase of a home is the most important purchase most people will ever make. Until people are actually involved in the process, they sometimes think it won’t be much different than selling a car. Far from it! A home is way more expensive and there is a lot more to buying and selling one than simply signing the back of an automobile title and taking it to the DMV to get ownership transferred. A real estate professional can make sure that their client—the buyer or the seller—is informed of appropriate laws and procedures and handle the paperwork necessary to complete the sale.
6. Homes cost a lot of money and buyers need to be assured that the home is in the best condition possible, as well as being assured that they will receive a clear title to the property. Real estate professionals representing buyers and sellers can assure that the process goes smoothly, relieve much aggravation and potential conflict if there are problems with the sale, and obtain higher net proceeds for sellers, when compared to For Sale By Owners. On the buyer's side, an agent can guide the buyer as to his rights under real estate law and make sure the buyer does not pay too much for the home. In either case, the Realtor® does a lot of handholding.
I have been a real estate professional for many years. I don’t want to say that I’ve seen everything that can go right or wrong with a sale, but certainly I’ve seen most situations. I understand the financial and emotional impact buying and selling a home has on the average family.
What I don't understand is why people resist hiring a real estate professional. If a person is ill, he goes to a professional--his doctor. If he needs legal advice, he goes to his lawyer. There is no question of NOT paying for this type of professional help. Why do people feel that a Realtor® does not merit pay for professional services rendered? According to the National Association of Realtors®, the main reason sellers resist hiring a Realtor® is to save the commission.
Contrary to popular opinion, real estate agents earn every cent they make. They work long hours (including weekends and even holidays) on behalf of their clients and they defer payment until the home is sold. Real estate agents pay up front--out of their own pockets--for advertising, driving prospective buyers around, MLS services, website costs, telephone costs, computers, Internet access and so much more. It takes time, money, and effort to bring buyers and sellers together. Whether the agent represents the buyer or seller, if the transaction doesn't close, the agent receives nothing.
But if the transaction does close, the agent receives only a share of the perceived “standard 6%” commission. First, the commission is divided between the buyer agent's company and the listing agent's company. Then, and only then, does the agent get a share of his company's percentage.
If the house doesn't sell and the owner decides to not renew the listing or cancels it before the listing expires, the agent is out a lot of money and doesn't get paid anything at all. How does this square with the misconception that Realtors® "don't do anything?"
Most Realtors® work more than 40-hour weeks. They work when most people have the day off. They are not lazy people, and they put a lot of effort into getting their listings sold. Why do people not want to pay them? I'm still scratching my head.
Note: All real estate agents are not Realtors®. Realtor® is a term to denote a member of the National Association of Realtors®.
For more information:
http://www.realtor.org/publicaffairsweb.nsf/0/a7ca712a7fb7bb7a85256ba70055d57c?OpenDocument
http://www.realtor.org/prodser.nsf/files/2003HBS_sample.pdf/$FILE/2003HBS_sample.pdf
http://www.nwanews.com/adg/Business_Matters/158801
I don't necessarily agree with the proposed law. Americans have traditionally been free to make their own decisions, right or wrong, and certainly property ownership is no exception. In fact, property rights were some of the basic rights the founding fathers of our nation valued. An early version of the “Declaration of Independence” stated the rights of the colonists to “life, liberty, and property” instead of the final version of “life, liberty and the pursuit of happiness.”
On the other hand, there are many reasons to use the services of a Realtor®, some of which are so plain to see that I can’t understand why a buyer or seller would even consider trying to go it alone:
1. A person becomes a licensed Realtor® only after studying all the applicable laws, being tested on that knowledge, and continuing his/her education annually. Most Realtors® also seek advanced education resulting in designations such as Accredited Buyer Representative (ABR®), Certified Residential Specialist (CRS) and others. These designations require experience (a minimum number of transactions) as well as many courses to improve their knowledge to better serve their clients.
2. An experienced Realtor® knows the market inside and out and provides valuable advice to both buyers and sellers.
3. Most real estate agents primarily function as problem solvers. They provide a valuable buffer between buyer and seller to negotiate terms and solve problems without acrimony and to achieve a "win-win" situation for both sides. A lot of things can go wrong in a real estate transaction--from problems discovered during the home inspection, to problems with financing, to simple things like seeing that keys are delivered to the new owner. I don’t have enough space here to tell you about all the “fires” I’ve had to put out at the last minute to prevent a sale from collapsing.
4. Realtors® must comply with Fair Housing laws but owners selling their own property are exempt from the same laws.
5. Studies from the National Association of Realtors® have shown that for-sale-by-owners often receive less in net proceeds from the sale of their home than they would have if they had used a Realtor®--even after paying the commission. According to the National Association of Realtors®, in 2005 the median price of FSBO homes was $198,200 while the median price of agent-assisted home sales was $230,000.
6. Having a Realtor® saves a lot of time and trouble for a seller. The real estate professional will market the home, make valuable suggestions on presentation to help the home sell faster, assist with the complicated paperwork, and provide current data on home sales in order to price the home appropriately. Plus, because there will be a lock box on the home, the seller doesn’t have to go rushing home during his lunch hour to show it.
I don't argue with the right of a seller to sell his home himself. But as a buyer, I wouldn't even look at that home without the help of a buyer agent. How could I be sure that the person selling the home knows what he is doing? I would want to be assured of a clear title to the property. Would I know how to negotiate any necessary repairs? What if the seller would not cooperate in having the property inspected or properly repaired? What if the inspection discovers something so drastically wrong with the property that I ultimately don't want to buy it? Will the seller give my earnest money back or will I have to seek legal assistance?
For Sale By Owner (FSBO) sellers often think just getting their home on the Internet, putting a sign in the yard and ads in the paper, as well as having an open house, are all it takes to sell it. That is far from reality because:
1. Most buyers now have buyer representatives. This is especially important in NW Arkansas where many people are being transferred in (or out) because of employment. Most people relocating here do not pick up the newspaper to look for FSBOs or even look at FSBO websites. They get a buyer’s agent who knows the market and neighborhoods which will meet their family’s needs.
2. When the buyer’s agent looks for properties to show his buyer, he looks in the Multiple Listing Service. FSBO homes are not in the MLS.
3. People actively seeking a FSBO are few. According to statistics from NAR (National Association of Realtors®), 77% of homebuyers in 2005 purchased their home with a real estate agent, and 1/3 of For Sale By Owner homes were sold to someone the seller already knew.
4. Buyer’s agents bring qualified buyers to the table. Usually there is an interview process whereby the buyer’s agent assures that the buyer is able to get a loan to purchase the home. Many people who seek For Sale By Owner properties are those who ask for owner financing or other options because their credit is shaky.
5. Most important, the process of buying a home is a complicated one. The purchase of a home is the most important purchase most people will ever make. Until people are actually involved in the process, they sometimes think it won’t be much different than selling a car. Far from it! A home is way more expensive and there is a lot more to buying and selling one than simply signing the back of an automobile title and taking it to the DMV to get ownership transferred. A real estate professional can make sure that their client—the buyer or the seller—is informed of appropriate laws and procedures and handle the paperwork necessary to complete the sale.
6. Homes cost a lot of money and buyers need to be assured that the home is in the best condition possible, as well as being assured that they will receive a clear title to the property. Real estate professionals representing buyers and sellers can assure that the process goes smoothly, relieve much aggravation and potential conflict if there are problems with the sale, and obtain higher net proceeds for sellers, when compared to For Sale By Owners. On the buyer's side, an agent can guide the buyer as to his rights under real estate law and make sure the buyer does not pay too much for the home. In either case, the Realtor® does a lot of handholding.
I have been a real estate professional for many years. I don’t want to say that I’ve seen everything that can go right or wrong with a sale, but certainly I’ve seen most situations. I understand the financial and emotional impact buying and selling a home has on the average family.
What I don't understand is why people resist hiring a real estate professional. If a person is ill, he goes to a professional--his doctor. If he needs legal advice, he goes to his lawyer. There is no question of NOT paying for this type of professional help. Why do people feel that a Realtor® does not merit pay for professional services rendered? According to the National Association of Realtors®, the main reason sellers resist hiring a Realtor® is to save the commission.
Contrary to popular opinion, real estate agents earn every cent they make. They work long hours (including weekends and even holidays) on behalf of their clients and they defer payment until the home is sold. Real estate agents pay up front--out of their own pockets--for advertising, driving prospective buyers around, MLS services, website costs, telephone costs, computers, Internet access and so much more. It takes time, money, and effort to bring buyers and sellers together. Whether the agent represents the buyer or seller, if the transaction doesn't close, the agent receives nothing.
But if the transaction does close, the agent receives only a share of the perceived “standard 6%” commission. First, the commission is divided between the buyer agent's company and the listing agent's company. Then, and only then, does the agent get a share of his company's percentage.
If the house doesn't sell and the owner decides to not renew the listing or cancels it before the listing expires, the agent is out a lot of money and doesn't get paid anything at all. How does this square with the misconception that Realtors® "don't do anything?"
Most Realtors® work more than 40-hour weeks. They work when most people have the day off. They are not lazy people, and they put a lot of effort into getting their listings sold. Why do people not want to pay them? I'm still scratching my head.
Note: All real estate agents are not Realtors®. Realtor® is a term to denote a member of the National Association of Realtors®.
For more information:
http://www.realtor.org/publicaffairsweb.nsf/0/a7ca712a7fb7bb7a85256ba70055d57c?OpenDocument
http://www.realtor.org/prodser.nsf/files/2003HBS_sample.pdf/$FILE/2003HBS_sample.pdf
http://www.nwanews.com/adg/Business_Matters/158801
Monday, June 19, 2006
Looks Like the Adjustment Period is Here Too
It appears an adjustment period in NWA real estate has begun. Home prices are leveling out. There is a large inventory of homes for sale in the $200,000 and up category. I don’t believe prices will go down, but at the very least, I do not think they will rise as rapidly as they have in the past couple of years.
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
There are more homes to choose from now and buyers are taking their time looking. Even homes under $150K are staying on the market longer, where last year the good ones would have sold within a week or so.
Mortgage rates have been slowly but steadily rising and that affects home prices and home sales. When interest rates were at their lowest, many buyers who wanted to move up to a bigger, better home did so. Those people are now homeowners, not buyers. And for those who didn't buy, many are now staying in their current homes, since higher interest rates mean that they can purchase less house for the same money now.
What all this means to you depends on whether you are buying, selling, or staying put.
For buyers, it means more choices, perhaps a bit more home or extra amenities than they expected, and more time to make a decision.
For sellers, it means pricing the home realistically, perhaps doing a little extra sprucing up, and being patient.
For those staying put, the adjustment has no short-term effects. Home prices have traditionally increased over time and will no doubt continue to do so in the long term.
In a recent article, Parade Magazine stated “The wild housing boom of the past few years is over.” I would have to agree. The unprecedented, unwarranted increases experienced in some parts of the country are now coming down to more realistic numbers. And the high inventory of homes available in NW Arkansas, as well as higher interest rates, are contributing to an "adjustment" here as well.
Home prices in Northwest Arkansas have also risen significantly in the past few years but in more rational amounts than some of the “hot” markets such as San Francisco, Boston, Las Vegas, and Phoenix, where home prices have skyrocketed in just a few short years. A correction in that type of market is inevitable. It is also occurring here but on a smaller scale.
The thing to remember is that what happens in one part of the country doesn’t necessarily have any correlation to another part. In other words, the current adjustment in the real estate market will have many variations throughout the country. The traditional wisdom is that all real estate is "local" and that is certainly true here in NW Arkansas. Reading national headlines and statistics can cause undue concern. This adjustment period was not unexpected. The real estate market has always experienced swings and the current swing favors buyers.
People have not stopped moving to Northwest Arkansas. Good homes that are fairly priced continue to sell. But since there are more houses on the market, competition among sellers is higher, so the key is to price one's home at market value (or less) if a quick sale is needed. For buyers, there's a lot more to choose from.
For more information:
http://www.parade.com/articles/editions/2006/edition_05-21-2006/Buy-Sell
http://www.nwanews.com/adg/Business/155811/
Wednesday, June 14, 2006
Baby Boomers Dominate 2nd Home Market
When I hear the phrase “baby boomers,” a picture forms in my mind’s eye – a picture of large numbers of well-educated people who are nearing retirement age. The number of people born between 1946 and 1964 now comprises the largest generation in U.S. history. They have affected everything from women’s lib and civil rights to glass ceilings and just about everything in between.
I am a baby boomer and a Realtor® so I was not surprised when I recently became aware of some studies by NAR as to the effect baby boomers are having on the housing market, not only nationally but also here in NW Arkansas.
A recent study by National Association of Realtors® (NAR) shows that 80% of baby boomers own their primary residence. The overall rate of home ownership is the United States is only 69%. According to the U.S. Census Bureau, there are 74.6 million owner-occupied homes. That means boomers own almost 60 million of them.
In addition, there are 6.8 million vacation/seasonal/second homes in the U.S. and boomers own 57% of them. Many boomers own more than one. Bella Vista anyone?
Not all boomers plan to make their vacation home their primary residence when they retire, but for those who do, the income tax advantages are very generous. Internal Revenue Service rules state that married homeowners who have lived in their primary residence for at least 2 out of the 5 years ending on the date of sale can exclude up to $500,000 of gain. Unmarried taxpayers can exclude up to $250,000 of gain.
After selling their primary residence, if they then move into their vacation home and make that their primary residence, the same rules apply: live in it for at least 2 out of the 5 years ending on the date of sale and another sizable capital gain can be excluded from taxable income. There is no limit on the number of times this provision of the tax code can be used.
Interest and property taxes on a second home are deductible each year. Add to that the advantage of tax-free capital gains and it’s easy to understand why many boomers will move from home to home. Having such favorable tax advantages can help build a comfortable retirement.
According to National Association of Realtors® study,”Leisure activities of interest to vacation-home owners include beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.” It’s no wonder Northwest Arkansas is so popular!
Boomers are in the midst of their highest-earning years. They realize the benefits property ownership provides. Not only do boomers understand the value of owning property, they understand the value of diversifying their assets.
More than half of all rental property in the United States is currently owned by boomers. Some own only one rental, but a considerable number own five or more properties. And NW Arkansas, despite the recent rise in multi-family prices, still provides good opportunities for investment.
Boomers have also branched out to ownership of commercial property and undeveloped land.
If I can help you find property that may help with your overall plans for home ownership now or in your retirement, please call me. I can help you find investment properties or land as well as a nice retirement home. And if you want to purchase a second home elsewhere, I communicate regularly with agents from all over the country who may be able to help.
For more information:
http://www.irs.gov/publications/p523/ar02.html#d0e1931
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/BabyBoomerStudy06?OpenDocument
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/2ndHomeSurvey06?OpenDocument
I am a baby boomer and a Realtor® so I was not surprised when I recently became aware of some studies by NAR as to the effect baby boomers are having on the housing market, not only nationally but also here in NW Arkansas.
A recent study by National Association of Realtors® (NAR) shows that 80% of baby boomers own their primary residence. The overall rate of home ownership is the United States is only 69%. According to the U.S. Census Bureau, there are 74.6 million owner-occupied homes. That means boomers own almost 60 million of them.
In addition, there are 6.8 million vacation/seasonal/second homes in the U.S. and boomers own 57% of them. Many boomers own more than one. Bella Vista anyone?
Not all boomers plan to make their vacation home their primary residence when they retire, but for those who do, the income tax advantages are very generous. Internal Revenue Service rules state that married homeowners who have lived in their primary residence for at least 2 out of the 5 years ending on the date of sale can exclude up to $500,000 of gain. Unmarried taxpayers can exclude up to $250,000 of gain.
After selling their primary residence, if they then move into their vacation home and make that their primary residence, the same rules apply: live in it for at least 2 out of the 5 years ending on the date of sale and another sizable capital gain can be excluded from taxable income. There is no limit on the number of times this provision of the tax code can be used.
Interest and property taxes on a second home are deductible each year. Add to that the advantage of tax-free capital gains and it’s easy to understand why many boomers will move from home to home. Having such favorable tax advantages can help build a comfortable retirement.
According to National Association of Realtors® study,”Leisure activities of interest to vacation-home owners include beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.” It’s no wonder Northwest Arkansas is so popular!
Boomers are in the midst of their highest-earning years. They realize the benefits property ownership provides. Not only do boomers understand the value of owning property, they understand the value of diversifying their assets.
More than half of all rental property in the United States is currently owned by boomers. Some own only one rental, but a considerable number own five or more properties. And NW Arkansas, despite the recent rise in multi-family prices, still provides good opportunities for investment.
Boomers have also branched out to ownership of commercial property and undeveloped land.
If I can help you find property that may help with your overall plans for home ownership now or in your retirement, please call me. I can help you find investment properties or land as well as a nice retirement home. And if you want to purchase a second home elsewhere, I communicate regularly with agents from all over the country who may be able to help.
For more information:
http://www.irs.gov/publications/p523/ar02.html#d0e1931
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/BabyBoomerStudy06?OpenDocument
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/2ndHomeSurvey06?OpenDocument
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