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I came across an article the other day regarding a proposal for a high-speed, state-of-the-art rail line that might someday run between San Diego, California and Vancouver, B.C. While I don’t expect NW Arkansas will ever be ready for something like that, it did get me thinking (again) about the need to improve transportation in our area.
I’ve written about this problem before – but I don’t see a lot of significant progress.
For example, plans for a proposed light rail system in NW Arkansas don’t seem to be any further along than they were a couple of years ago. In fact, I don’t know if they’re still on the drawing board.
NW Arkansas is still very “car” oriented. There are decent bus lines but the funding is limited which means the routes are limited. The majority of folks in NW Arkansas have multiple vehicles and multiple garages to house them. Want to go to the movies? Get in the car! Want a hamburger? Get in the car! We bank from our car, get our prescriptions and other items at the drive-through. This love affair with the automobile will not help the new "Green" image NW Arkansas is trying to promote.
Meanwhile, traffic on I-540 and the connector roads during the rush hours grows worse by the day. I-540 needs to be widened to 6 lanes (3 north, 3 south). There’s good news lately about the Bella Vista bypass. Currently, the high-speed interstate ends in Bella Vista and cars and trailer trucks crawl through a town with several traffic lights. When the traffic finally reaches Missouri, the road once again becomes a high-speed highway. Lack of funding has delayed this project for years.
Now it appears the Arkansas and Missouri highway commissions will make a joint request for funds for the Bella Vista bypass from the $1.5 billion federal stimulus money being made available to states for major highway projects.
The proposed Hwy. 412 bypass north of Springdale was finally approved last year but doesn't have the money to even acquire the land--never mind actual construction.
My mother used to say "make hay while the sun shines." The sun is now glowing brighter than ever with the $787 billion economic stimulus bill Congress approved plus we have a sympathetic ear in Washington these days.
Those in positions to do something about the transportation situation in NW Arkansas should get on the stick and do whatever it takes to obtain funding for necessary infrastructure improvements. If we can’t get a light rail system up and running, we need to improve roads.
The city of Springdale has been proactive in developing alternative routes to Hwy. 412 for east/west transportation, which was always a nightmare, especially during rush hour. Huntsville Road is now almost done with 4-5 lanes from I-540 going east to Hwy. 412. The new Don Tyson Parkway across the south side of town was exceptional planning and now provides a great alternative to Hwy. 412. And work continues on another east-west road across the northern part of the city. Springdale has shown great foresight in passing bonds to get these improvements completed.
Rogers built a new exit from I-540 to the Pinnacle Hills Mall. Another example of foresight is the recently widened New Hope Road.
Bentonville improved S. Walton Blvd. from a little two-lane road to 5-lanes (and it’s jammed with traffic). I can’t imagine how that city could have grown as it has without widening that major road.
Contrast this to Fayetteville, where the ‘head in the sand’ mentality seems to prevail with regard to growth. The ‘Keep Fayetteville Funky’ folks would like that growth not happen, but it is happening and must be dealt with in a positive manner and with foresight. I don’t mean to imply Fayetteville hasn’t done anything. Indeed, the widening of Hwy. 16 West (Wedington) has really improved transportation to I-540. And in the near future, a similar project will widen Mt. Comfort Road.
On the other hand, getting from the east side of Fayetteville to the west side (or vice versa) is a nightmare. Having a mountain in the middle of town doesn't help, of course, but people rightfully expect to move expeditiously from one side of town to the other and funky little two-lane roads do not cut it.
The wider Joyce Blvd. is great, but we also need wider and easier access on the south end of town and through the middle of town. I can't picture a 4-5 lane through the historic district, so Township would seem to be IT in this regard. There was a proposal several years ago to make Township a 4-lane road from Crossover to Gregg Street. It was blocked by residents along that route, especially from College to Crossover, and I fully sympathize with property owners there. On the other hand, the few residents that this would have affected need to be cognizant of larger goals.
If we are proactive in transportation and infrastructure, our area will continue to be on national lists of "10 Best" places to live. If we keep burying our heads in the sand while hoping for a miracle, growth will come to a stand still along with the traffic.
This area is still growing and will continue to do so. Any major improvement will take years and lots of money to accomplish but if we formulate tangible plans and work with our elected officials in Washington, it might be possible to get moving. It’s time to get on the stick and do whatever it takes to obtain funding for necessary infrastructure.
If we can’t get a light rail system up and running, or at least a public bus system, we need to improve roads.
For more information:
http://www.hispanicbusiness.com/news/2009/5/11/highspeed_rail_may_connect_california_to.htm
http://www.arkansashighways.com/Environ/SpecialStudies/001966/001966.htm
http://nwasource.com/gov/2009/03/13/state-will-file-bella-vista-bypass-application/
Sunday, May 31, 2009
Sunday, May 24, 2009
1st Quarter 2009 Skyline Report
On Friday, May 15, I attended the breakfast meeting at the Holiday Inn Convention Center in Springdale where the first quarter 2009 Skyline Report highlights were presented. Kathy Deck, Director of the U of A Center for Business and Economic Research, talked about the NW Arkansas housing market—especially conditions in Washington County, and Scott Phillips, Senior Fixed Income Portfolio Manager for Arvest, talked about some trends in the national economy which give a ray of hope that the current recession may be starting a recovery.
According to Phillips, to date there have been $1.4 trillion in losses at global financial firms. The current estimate is that such losses will go to $3.4 trillion before the recession ends. Consumer confidence is still declining nationally, and as people save more, that’s actually bad for the economy, since they aren’t spending money. On a positive note, however, consumer debt and bank lending corrections are decreasing, but unemployment rates are still high and are expected to go higher.
In response to a question from the audience, Phillips noted that for people who have lost a lot of money in the stock market, the estimate is that it will take anywhere from 3.5 to 8 years to recoup those losses. He indicated that the lowest the stock market fell was on March 9 of this year and has been rising slowly since then. Normally, he said, stock prices bottom out before earnings.
He also indicated that although the economy remains in recession, credit conditions are slowly improving. It’s a good time to purchase stocks while they are still “slightly cheap.”
For the housing market segment, Kathy Deck began where she usually does, with employment numbers, since positive job growth is what normally attracts people to NW Arkansas. Those people, in turn, purchase homes and generally determine the condition of the real estate market, including residential, multifamily and commercial sales and rentals.
Whereas in the past, NW Arkansas seemed to be immune from the type of job loss that was occurring in other parts of the country, the first quarter of this year saw the destruction of about 1300 jobs here, a decline of approximately 1% in non-farm employment. The only sectors in which there was positive job growth were Education and Health, Professional and Business Services, and in the Leisure and Hospitality sector. All other types of employment experienced job loss. Government remained steady.
The commercial sector in NW Arkansas saw very little in the way of building permits in the first quarter, and the amount of available square footage rose in Fayetteville and Springdale, as well as in NW Arkansas as a whole.
For multifamily, the vacancy rates have risen. In Fayetteville this is because of new spaces being added, in the form of new apartment complexes being built. For Springdale, it is because of population movement away from the city.
In the residential sector, the number of building permits issued for Fayetteville is the lowest it has been for many years, less than 50 for the whole first quarter, compared to over 200 during each of the peak 2nd and 3rd quarters of 2005. For Springdale only about 25 residential building permits were issued during Q1, and in West Washington County (which includes communities such as West Fork, Prairie Grove, Lincoln, etc.) new building permits were essentially at zero for the quarter. Nevertheless, the value of the average building permit in NW Arkansas has been rising in Washington County to approximately $190,000.
Needless to say, the number of houses under construction in active subdivisions has also declined, as has the absorption rate. The number of available lots in active subdivisions also showed a small decline compared with Q1 of last year, a positive step. Also showing declines were the number of homes sold in Washington County during Q1 and the average price per house sold.
Unlike in the past, according to Deck, declines in absorption are now because people are not purchasing enough homes. In the past it was because of over-building. Because of the low number of building permits pulled in the first quarter, that is no longer the case.
Affecting the housing market, of course, is the large number of foreclosures (see my post of May 16). This is a major factor driving down home prices.
For more information, see also:
http://www.nwanews.com/adg/Business/260081
According to Phillips, to date there have been $1.4 trillion in losses at global financial firms. The current estimate is that such losses will go to $3.4 trillion before the recession ends. Consumer confidence is still declining nationally, and as people save more, that’s actually bad for the economy, since they aren’t spending money. On a positive note, however, consumer debt and bank lending corrections are decreasing, but unemployment rates are still high and are expected to go higher.
In response to a question from the audience, Phillips noted that for people who have lost a lot of money in the stock market, the estimate is that it will take anywhere from 3.5 to 8 years to recoup those losses. He indicated that the lowest the stock market fell was on March 9 of this year and has been rising slowly since then. Normally, he said, stock prices bottom out before earnings.
He also indicated that although the economy remains in recession, credit conditions are slowly improving. It’s a good time to purchase stocks while they are still “slightly cheap.”
For the housing market segment, Kathy Deck began where she usually does, with employment numbers, since positive job growth is what normally attracts people to NW Arkansas. Those people, in turn, purchase homes and generally determine the condition of the real estate market, including residential, multifamily and commercial sales and rentals.
Whereas in the past, NW Arkansas seemed to be immune from the type of job loss that was occurring in other parts of the country, the first quarter of this year saw the destruction of about 1300 jobs here, a decline of approximately 1% in non-farm employment. The only sectors in which there was positive job growth were Education and Health, Professional and Business Services, and in the Leisure and Hospitality sector. All other types of employment experienced job loss. Government remained steady.
The commercial sector in NW Arkansas saw very little in the way of building permits in the first quarter, and the amount of available square footage rose in Fayetteville and Springdale, as well as in NW Arkansas as a whole.
For multifamily, the vacancy rates have risen. In Fayetteville this is because of new spaces being added, in the form of new apartment complexes being built. For Springdale, it is because of population movement away from the city.
In the residential sector, the number of building permits issued for Fayetteville is the lowest it has been for many years, less than 50 for the whole first quarter, compared to over 200 during each of the peak 2nd and 3rd quarters of 2005. For Springdale only about 25 residential building permits were issued during Q1, and in West Washington County (which includes communities such as West Fork, Prairie Grove, Lincoln, etc.) new building permits were essentially at zero for the quarter. Nevertheless, the value of the average building permit in NW Arkansas has been rising in Washington County to approximately $190,000.
Needless to say, the number of houses under construction in active subdivisions has also declined, as has the absorption rate. The number of available lots in active subdivisions also showed a small decline compared with Q1 of last year, a positive step. Also showing declines were the number of homes sold in Washington County during Q1 and the average price per house sold.
Unlike in the past, according to Deck, declines in absorption are now because people are not purchasing enough homes. In the past it was because of over-building. Because of the low number of building permits pulled in the first quarter, that is no longer the case.
Affecting the housing market, of course, is the large number of foreclosures (see my post of May 16). This is a major factor driving down home prices.
For more information, see also:
http://www.nwanews.com/adg/Business/260081
Saturday, May 16, 2009
A Few Observations about the NW Arkansas Housing Market
While some local economists are seeing a bright spot here and there, the rate of foreclosures in Arkansas continues to rise, and the real estate market in NW Arkansas still has a long way to go to get out of the hole it is in. According to Kathy Deck, director of the U of A Center for Business and Economic Research, in Benton County there are now 1500 bank-owned properties, up from 747 six months ago. In Washington County, the situation is not quite as bad with 548 bank-owned properties, up from 475 six months ago.
In April alone, there were 504 new foreclosures in Benton County according to RealtyTrac and 357 new foreclosures in Washington County. These are not the numbers anyone wanted to see. Nationally, one in every 440 U.S. homes received a foreclosure filing in February.
It could be worse. Nevada had the country's worst foreclosure rate in February: one in every 70 housing units, which is an astounding 156% increase from February 2008. Arizona's rate was second, one foreclosure for every 147 houses.
I don’t believe anyone ever expected to see such misery in the housing market!
On the other hand, there are some tremendous opportunities for buyers now. I believe there are some outstanding bargains these days whether for first-time home buyers or investors. The average price-per-square foot of homes sold so far in 2009 was $77, down 4.9% from January and 8.3% lower than a year ago. In some cases, homes are being sold at 20%-40% below their original asking price, which is not surprising given the fact that the majority of homes sold these days are distressed sales or foreclosures.
The question everyone asks me is: has the market bottomed out and started a slow climb up? My perception is that the answer is not yet, but we may be getting close.
Spring is here and more buyers are appearing. Sales throughout the country actually increased 5.1% in February. In April in Fayetteville, more homes were sold this year than last year, 85 this April compared to 75 last April.
The new federal tax credit of up to $8,000 is a windfall for qualified first-time homebuyers. Interest rates are at their lowest ever – under 5% APR for a 30-year fixed mortgage. And the feds are taking unprecedented steps to get the credit system working again.
It’s definitely a buyer’s market and the selection of homes in outstanding.
I always wanted to buy into the stock market when prices hit bottom and sell when it was at the top. I never managed to do that and neither has anyone I know.
It’s the same with buying a home – the biggest investment most folks will ever make. It’s a long-term investment that you can live in while weathering the ups and downs of the market. We may not be at the very bottom but I think we’re close!
For more information:
http://www.nwanews.com:80/adg/Business/254750/
http://www.nwaonline.net/articles/2009/03/16/business/031709bushomesales.txt
http://www.nwarktimes.com/adg/National/255611
http://www.amerisave.com/?source=2540&gclid=COzDt97Ew5kCFR7yDAodTEffvA
http://www.realtytrac.com/states/Arkansas.html
http://realtytimes.com/rtmcrcond5/Arkansas~Fayetteville~judyluna
http://realtytimes.com/rtmcrloc/Arkansas~Springdale
In April alone, there were 504 new foreclosures in Benton County according to RealtyTrac and 357 new foreclosures in Washington County. These are not the numbers anyone wanted to see. Nationally, one in every 440 U.S. homes received a foreclosure filing in February.
It could be worse. Nevada had the country's worst foreclosure rate in February: one in every 70 housing units, which is an astounding 156% increase from February 2008. Arizona's rate was second, one foreclosure for every 147 houses.
I don’t believe anyone ever expected to see such misery in the housing market!
On the other hand, there are some tremendous opportunities for buyers now. I believe there are some outstanding bargains these days whether for first-time home buyers or investors. The average price-per-square foot of homes sold so far in 2009 was $77, down 4.9% from January and 8.3% lower than a year ago. In some cases, homes are being sold at 20%-40% below their original asking price, which is not surprising given the fact that the majority of homes sold these days are distressed sales or foreclosures.
The question everyone asks me is: has the market bottomed out and started a slow climb up? My perception is that the answer is not yet, but we may be getting close.
Spring is here and more buyers are appearing. Sales throughout the country actually increased 5.1% in February. In April in Fayetteville, more homes were sold this year than last year, 85 this April compared to 75 last April.
The new federal tax credit of up to $8,000 is a windfall for qualified first-time homebuyers. Interest rates are at their lowest ever – under 5% APR for a 30-year fixed mortgage. And the feds are taking unprecedented steps to get the credit system working again.
It’s definitely a buyer’s market and the selection of homes in outstanding.
I always wanted to buy into the stock market when prices hit bottom and sell when it was at the top. I never managed to do that and neither has anyone I know.
It’s the same with buying a home – the biggest investment most folks will ever make. It’s a long-term investment that you can live in while weathering the ups and downs of the market. We may not be at the very bottom but I think we’re close!
For more information:
http://www.nwanews.com:80/adg/Business/254750/
http://www.nwaonline.net/articles/2009/03/16/business/031709bushomesales.txt
http://www.nwarktimes.com/adg/National/255611
http://www.amerisave.com/?source=2540&gclid=COzDt97Ew5kCFR7yDAodTEffvA
http://www.realtytrac.com/states/Arkansas.html
http://realtytimes.com/rtmcrcond5/Arkansas~Fayetteville~judyluna
http://realtytimes.com/rtmcrloc/Arkansas~Springdale
Do Your Kids Want to Play Basketball? Fayetteville is the Winning Place!
I’m a little late with this post, but we had an extraordinary event happen last month. There was a lot of celebratory noise coming from Fayetteville -- because of the high school basketball champions – two of them!
That’s right, both the Fayetteville High School boys and girls basketball teams became the new state champions. And not only that, they each went undefeated for the entire season.
The Lady Bulldogs team went 32-0 for the season and won the class 7-A Arkansas State Championship title by a 72-61 win over North Little Rock. (7A is the highest classification.)
Just a short two hours later, the Bulldogs (boys) capped their 30-0 season by a 40-34 victory over Rogers to win their 7A Championship title.
It’s not the first time a high school has won both boys and girls titles in the same season but for both teams to go undefeated and cap it off with the title of champion is almost unheard of. It is a first in Arkansas and may even be the first in the country.
I just want to say Congratulations (even if a little late)! Way to go!
For more information:
http://www.nwarktimes.com/adg/Sports/254985/print/
http://www.nwaonline.net/articles/2009/03/16/opinion/031709editorial.txt
That’s right, both the Fayetteville High School boys and girls basketball teams became the new state champions. And not only that, they each went undefeated for the entire season.
The Lady Bulldogs team went 32-0 for the season and won the class 7-A Arkansas State Championship title by a 72-61 win over North Little Rock. (7A is the highest classification.)
Just a short two hours later, the Bulldogs (boys) capped their 30-0 season by a 40-34 victory over Rogers to win their 7A Championship title.
It’s not the first time a high school has won both boys and girls titles in the same season but for both teams to go undefeated and cap it off with the title of champion is almost unheard of. It is a first in Arkansas and may even be the first in the country.
I just want to say Congratulations (even if a little late)! Way to go!
For more information:
http://www.nwarktimes.com/adg/Sports/254985/print/
http://www.nwaonline.net/articles/2009/03/16/opinion/031709editorial.txt
Sunday, May 03, 2009
NW Arkansas Positions Itself as a Leader in the Sustainability Movement
It wasn’t too many years ago that NW Arkansas was known as a rural farming area, if it was known at all. But Sam Walton had a small store in Bentonville – and you know the rest of the story.
As Wal-Mart grew by leaps and bounds, so did NW Arkansas. Wal-Mart’s major vendors started opening branches here and they and their families needed housing, schools, banking, hospitals, shopping centers, highways, sewer systems, and on and on.
The burgeoning population created the housing and construction boom which, of course, brought more families with more needs.
But the economic downturn around the country and the world caused folks in NW Arkansas to wonder if this growth could continue.
The answer may well be yes! Sustainability-based research and development has the potential to drive Northwest Arkansas for years to come and action is already underway to position itself as “Green Valley.” (Think California’s Silicon Valley 40 years ago.)
Fayetteville in particular has been a leader for living green. The city has had a recycling program for several years, recently won the Arbor Day Foundation’s award as “Tree City USA” for the 14th consecutive year, and frequently wins the Garden City award for cities of its size.
Those recognitions may be small compared to the overall sustainability movement, but it bodes well for the mindset of residents and local governments.
The University of Arkansas-Fayetteville has an Applied Sustainability Center already up and running.
Forbes Magazine ranked NW Arkansas as #4 in the entire country on their new list of Top 25 Best Places for Business and Careers.
Some companies that specialize in such things as ways to improve fuel efficiency, maximize resources, minimize environmental footprints, reduce greenhouse gases, and the world's dependence on fossil fuel have moved here to take advantage of both the favorable business climate and the sustainability movement.
A few companies from Sweden, long recognized as a leader in sustainability technology, have set up U.S. headquarters here. Several other Swedish firms are in the process of doing the same and still more are seriously investigating the possibility.
Perhaps we have to give another nod to Wal-Mart for taking the position 3 years ago to reduce waste to zero and make sustainability a priority. It takes time to achieve a goal that mammoth but the fact that they’re working on it has garnered attention around the world.
Wal-Mart has more than 1,300 locally based suppliers who answered the call to develop new packaging, logistics and other practices that are now spreading throughout the industry.
Even The Washington Post and Wall Street Journal have recognized and published articles about what’s taking root in NW Arkansas.
The potential for NW Arkansas as a major player in the sustainability (green) movement is here and it’s very exciting!
For more information:
http://www.nwarktimes.com/adg/Business/252507
http://www.nwarktimes.com/adg/Business/240533
http://www.nwarktimes.com/nwat/News/75202/
As Wal-Mart grew by leaps and bounds, so did NW Arkansas. Wal-Mart’s major vendors started opening branches here and they and their families needed housing, schools, banking, hospitals, shopping centers, highways, sewer systems, and on and on.
The burgeoning population created the housing and construction boom which, of course, brought more families with more needs.
But the economic downturn around the country and the world caused folks in NW Arkansas to wonder if this growth could continue.
The answer may well be yes! Sustainability-based research and development has the potential to drive Northwest Arkansas for years to come and action is already underway to position itself as “Green Valley.” (Think California’s Silicon Valley 40 years ago.)
Fayetteville in particular has been a leader for living green. The city has had a recycling program for several years, recently won the Arbor Day Foundation’s award as “Tree City USA” for the 14th consecutive year, and frequently wins the Garden City award for cities of its size.
Those recognitions may be small compared to the overall sustainability movement, but it bodes well for the mindset of residents and local governments.
The University of Arkansas-Fayetteville has an Applied Sustainability Center already up and running.
Forbes Magazine ranked NW Arkansas as #4 in the entire country on their new list of Top 25 Best Places for Business and Careers.
Some companies that specialize in such things as ways to improve fuel efficiency, maximize resources, minimize environmental footprints, reduce greenhouse gases, and the world's dependence on fossil fuel have moved here to take advantage of both the favorable business climate and the sustainability movement.
A few companies from Sweden, long recognized as a leader in sustainability technology, have set up U.S. headquarters here. Several other Swedish firms are in the process of doing the same and still more are seriously investigating the possibility.
Perhaps we have to give another nod to Wal-Mart for taking the position 3 years ago to reduce waste to zero and make sustainability a priority. It takes time to achieve a goal that mammoth but the fact that they’re working on it has garnered attention around the world.
Wal-Mart has more than 1,300 locally based suppliers who answered the call to develop new packaging, logistics and other practices that are now spreading throughout the industry.
Even The Washington Post and Wall Street Journal have recognized and published articles about what’s taking root in NW Arkansas.
The potential for NW Arkansas as a major player in the sustainability (green) movement is here and it’s very exciting!
For more information:
http://www.nwarktimes.com/adg/Business/252507
http://www.nwarktimes.com/adg/Business/240533
http://www.nwarktimes.com/nwat/News/75202/
Sunday, April 19, 2009
The Internet – Ya Gotta Love It!
I recently came across an interesting article that discussed who uses the Internet and what they do with it.
The survey broke usage down into several age brackets. In my group (older baby boomer) only 70% of those surveyed used the Internet for anything. I use the Net so much it’s hard to visualize what the other 30% who don’t use it at all do for correspondence, news, shopping, banking and business!
Technology is an essential part of my business. I have multiple websites where buyers can access all of the NW Arkansas MLS listings plus lots of information about buying a home. I also provide many useful links to all kinds of information about NW Arkansas.
I was one of the first few agents in NW Arkansas to provide a website to search for homes. I am among an elite group of about 200 agents nationally who have been invited to join the Allen Hainge Cyberstars, and I was an early recipient of the e-Pro certification.
Ultimately the Internet has totally changed the way I do business and the way people look for homes. There used to be fear among real estate agents that the Internet would replace agents - that people wouldn't need us any more. But that is not the case; in fact, people who want to buy or sell a home need agents more than ever.
The Internet has tons of information, but the key is to be able to INTERPET that information. A good agent (for the buyer or seller) can provide key market data and help their clients maximize what they can learn for themselves from the Internet.
For sellers, a techy agent can provide the maximum exposure of their property to the 90% of buyers who now search for their home on line.
For buyers, a techy agent can provide additional information on potential properties they may want to see. And techy buyers are way ahead of the others. They go online to research potential homes and rule out the obviously unsuitable ones. Ultimately, buyers and I save lots of time, not to mention gasoline!
The Internet also provides the means for me to quickly send listings and photos by email, as well as documents for signatures.
If I can help you buy or sell, please let me know. It’s what I do, and I particularly enjoy helping first-time homebuyers fulfill their dreams.
If you would like to see how your usage compares to others in your age group, go to:
http://www.usatoday.com/tech/webguide/internetlife/2009-01-28-online-generations_N.htm
The survey broke usage down into several age brackets. In my group (older baby boomer) only 70% of those surveyed used the Internet for anything. I use the Net so much it’s hard to visualize what the other 30% who don’t use it at all do for correspondence, news, shopping, banking and business!
Technology is an essential part of my business. I have multiple websites where buyers can access all of the NW Arkansas MLS listings plus lots of information about buying a home. I also provide many useful links to all kinds of information about NW Arkansas.
I was one of the first few agents in NW Arkansas to provide a website to search for homes. I am among an elite group of about 200 agents nationally who have been invited to join the Allen Hainge Cyberstars, and I was an early recipient of the e-Pro certification.
Ultimately the Internet has totally changed the way I do business and the way people look for homes. There used to be fear among real estate agents that the Internet would replace agents - that people wouldn't need us any more. But that is not the case; in fact, people who want to buy or sell a home need agents more than ever.
The Internet has tons of information, but the key is to be able to INTERPET that information. A good agent (for the buyer or seller) can provide key market data and help their clients maximize what they can learn for themselves from the Internet.
For sellers, a techy agent can provide the maximum exposure of their property to the 90% of buyers who now search for their home on line.
For buyers, a techy agent can provide additional information on potential properties they may want to see. And techy buyers are way ahead of the others. They go online to research potential homes and rule out the obviously unsuitable ones. Ultimately, buyers and I save lots of time, not to mention gasoline!
The Internet also provides the means for me to quickly send listings and photos by email, as well as documents for signatures.
If I can help you buy or sell, please let me know. It’s what I do, and I particularly enjoy helping first-time homebuyers fulfill their dreams.
If you would like to see how your usage compares to others in your age group, go to:
http://www.usatoday.com/tech/webguide/internetlife/2009-01-28-online-generations_N.htm
Tuesday, March 10, 2009
The Mortgage Melt-down explained
I just discovered a wonderful video on You Tube which explains the mortgage melt-down in terms that everyone can understand. It's very clear, and there's also part 2 to continue the explanation.
Click below to see part 1.
http://www.youtube.com/watch?v=Q0zEXdDO5JU
It applies to the current situation in NW Arkansas Real Estate in that in this area we are victim to what happened in the mortgage meltdown. In addition, there were some contributing factors.
For example, back a number of years ago, the stock market tanked. Local people (who maybe lost money in the stock market) started looking at real estate investment rather than the stock market. A piece of land or a house is a tangible entity after all. They invested in single-family rentals and other multi-family real estate.
Then in 2004 the Fayetteville-Springdale-Rogers MSA (Metropolitan Statistical Area--i.e. basically NW Arkansas) ranked #1 for the Millkin report on the economy for all of the US, ahead of Las Vegas. All of a sudden the vultures started circling. Investors from all over the country were trying to purchase the same homes that first time home buyers were trying to purchase. Prices skyrocketed on the low end as demand far exceeded supply. Builders were not constructing new homes on the low end, because land prices were too high.
The result was that it became almost impossible to purchase an affordable home in NW Arkansas.
Then the mortgage melt-down happened and the investors from elsewhere disappeared. Inventory in NW Arkansas was high (i.e. lots of homes on the market in all aprice ranges).
Now we have a lot of homes on the market including affordable homes. Prices have declined precipitously. Of course, it all depends on price range.
The bottom line is that now is a terrific time to purchase a home. There are a lot of homes on the market in all price ranges. The low end is showing homes for less than $100K, a phenomenon not seen in many years. Lots of foreclosures, but also lots of good deals.
If you want to purchase a home, give me a call. I can help. I mostly help buyers, but my knowledge of the market also helps sellers.
See my home search website: http://www.NWArkansasHomeSearch.com or my regular informational website at http://www.Judyluna.com
Click below to see part 1.
http://www.youtube.com/watch?v=Q0zEXdDO5JU
It applies to the current situation in NW Arkansas Real Estate in that in this area we are victim to what happened in the mortgage meltdown. In addition, there were some contributing factors.
For example, back a number of years ago, the stock market tanked. Local people (who maybe lost money in the stock market) started looking at real estate investment rather than the stock market. A piece of land or a house is a tangible entity after all. They invested in single-family rentals and other multi-family real estate.
Then in 2004 the Fayetteville-Springdale-Rogers MSA (Metropolitan Statistical Area--i.e. basically NW Arkansas) ranked #1 for the Millkin report on the economy for all of the US, ahead of Las Vegas. All of a sudden the vultures started circling. Investors from all over the country were trying to purchase the same homes that first time home buyers were trying to purchase. Prices skyrocketed on the low end as demand far exceeded supply. Builders were not constructing new homes on the low end, because land prices were too high.
The result was that it became almost impossible to purchase an affordable home in NW Arkansas.
Then the mortgage melt-down happened and the investors from elsewhere disappeared. Inventory in NW Arkansas was high (i.e. lots of homes on the market in all aprice ranges).
Now we have a lot of homes on the market including affordable homes. Prices have declined precipitously. Of course, it all depends on price range.
The bottom line is that now is a terrific time to purchase a home. There are a lot of homes on the market in all price ranges. The low end is showing homes for less than $100K, a phenomenon not seen in many years. Lots of foreclosures, but also lots of good deals.
If you want to purchase a home, give me a call. I can help. I mostly help buyers, but my knowledge of the market also helps sellers.
See my home search website: http://www.NWArkansasHomeSearch.com or my regular informational website at http://www.Judyluna.com
Saturday, March 07, 2009
Benton County Homeowners to Receive a Break on Property Taxes—Yeah!
Benton County will be lowering values on residential properties by 2% - 6%. The percentages vary by area. Northeast Benton County will decrease by 6%, the southwest portion of the county will decrease by 2%, and other areas will be between those two figures.
When homeowners received their property assessments in 2008 there were thousands of unhappy people. By law, those values were based on 2005-2007 sales when prices were rapidly escalating. Thousands of appeals were filed, which resulted in many lowered valuations.
Now that property values have decreased again the county assessor is taking the first steps to lower appraisals.
This is a bit of good news for homeowners who are seeing the value of their homes shrink.
Commercial and industrial property appraisals will remain unchanged.
Note: In Arkansas, counties assess properties every third year. Thus, the next reappraisal was not scheduled until 2011. (For more details about the hows and whys of Arkansas appraisals, see my blog “Benton County Reappraisal Process is Complete” which I posted July 19, 2008.)
For more information:
http://www.nwaonline.net/articles/2009/03/02/news/030309bzequalization.txt
http://www.nwarktimes.com/adg/News/253986/
When homeowners received their property assessments in 2008 there were thousands of unhappy people. By law, those values were based on 2005-2007 sales when prices were rapidly escalating. Thousands of appeals were filed, which resulted in many lowered valuations.
Now that property values have decreased again the county assessor is taking the first steps to lower appraisals.
This is a bit of good news for homeowners who are seeing the value of their homes shrink.
Commercial and industrial property appraisals will remain unchanged.
Note: In Arkansas, counties assess properties every third year. Thus, the next reappraisal was not scheduled until 2011. (For more details about the hows and whys of Arkansas appraisals, see my blog “Benton County Reappraisal Process is Complete” which I posted July 19, 2008.)
For more information:
http://www.nwaonline.net/articles/2009/03/02/news/030309bzequalization.txt
http://www.nwarktimes.com/adg/News/253986/
Sunday, March 01, 2009
$8,000 Income Tax Credit for First-Time Homebuyers--WOW what a deal!
The new economic stimulus bill which was recently signed into law has a tremendous benefit for first-time homebuyers – a credit of up to $8,000! This is phenomenal--basically a gift from the federal government if you buy a home this year before December 1.
The credit is 10% of the cost of the home up to a maximum of $8,000 and does not have to be repaid if the buyer lives in the home for at least three years.
This provision is the difference between night and day compared to the $7,500 tax credit that took effect last year for homes purchased after April 9, 2008. The 2008 credit had to be repaid over 15 years, which essentially meant it was an interest free loan. (See my blog of August 30, 2008, “First-Time Homebuyer Tax Credit Explained.”)
So, I repeat: under most circumstances, the credit does not have to be repaid.
The home must be purchased between January 1, 2009 and November 30, 2009. December 1, 2009 is too late! The date ownership legally passes to the buyer is the qualifying date.
Who is a "first-time home buyer?" People who have not had an ownership interest in a primary residence during the last three years are eligible. Ownership in a vacation home would not be considered a primary residence.
Income qualifications for the full credit are $75,000 or less if single or $150,000 for a married couple. Partial credit is available to singles with incomes between $75,000 - $95,000 or married people whose incomes are between $150,000 - $170,000.
This is a refundable credit taken on the buyer’s federal income tax return for 2010. For example, if you will have already paid your full tax liability through withholding, you would still receive a refund of $8,000. Another example: you owed $5,000 in taxes and your withholding was $6,000. Your refund would total of $9,000. Last example: you owed $5,000 in taxes and your withholding was $4,000. Your refund would be $7,000.
Another extraordinary provision of the new law permits the buyer to elect to treat the purchase as if it occurred December 31, 2008 and take the credit on his 2008 income tax return. Even if the return has already been filed, an amended tax return can be filed to obtain the credit. This is especially useful for buyers whose income qualified them for the credit in 2008 but may have too much income in 2009.
Of course, the situation can be turned around. If the buyer would be better served in taking the credit on his 2009 tax return, he can reduce his withholding or estimated tax payments now instead of waiting until tax time in 2010.
All in all, I believe this may be the impetus needed to get people off the fence and into a home. Interest rates are low, inventory is huge, and $8,000 means a lot to most people. And it is so much better than last years $7,500 credit that, as mentioned above, has to be repaid.
The sad part for first-time buyers who purchased last year is that their $7,500 credit still has to be repaid. There is no provision in the law to forgive that and simply avail oneself of the $8,000 credit that does not have to be repaid. I certainly commiserate with them – but who could have possibly foreseen what this year’s law would provide?
IMPORTANT NOTE: This is my interpretation of the basic provisions of the new credit. I have tried to simplify things to give a picture of how this credit works but I urge you to check with your tax professional or accountant for full provisions of the law.
In any case, if you have not owned a home in the past 3 years and are thinking of purchasing a home as your principal residence, now is the time to do so. There are a lot of homes on the market now in NW Arkansas and some very good deals (especially foreclosures and short sales). As the spring progresses a lot of these good buys will be snapped up.
For more information:
http://www.federalhousingtaxcredit.com/2009/faq.php#5
http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712
The credit is 10% of the cost of the home up to a maximum of $8,000 and does not have to be repaid if the buyer lives in the home for at least three years.
This provision is the difference between night and day compared to the $7,500 tax credit that took effect last year for homes purchased after April 9, 2008. The 2008 credit had to be repaid over 15 years, which essentially meant it was an interest free loan. (See my blog of August 30, 2008, “First-Time Homebuyer Tax Credit Explained.”)
So, I repeat: under most circumstances, the credit does not have to be repaid.
The home must be purchased between January 1, 2009 and November 30, 2009. December 1, 2009 is too late! The date ownership legally passes to the buyer is the qualifying date.
Who is a "first-time home buyer?" People who have not had an ownership interest in a primary residence during the last three years are eligible. Ownership in a vacation home would not be considered a primary residence.
Income qualifications for the full credit are $75,000 or less if single or $150,000 for a married couple. Partial credit is available to singles with incomes between $75,000 - $95,000 or married people whose incomes are between $150,000 - $170,000.
This is a refundable credit taken on the buyer’s federal income tax return for 2010. For example, if you will have already paid your full tax liability through withholding, you would still receive a refund of $8,000. Another example: you owed $5,000 in taxes and your withholding was $6,000. Your refund would total of $9,000. Last example: you owed $5,000 in taxes and your withholding was $4,000. Your refund would be $7,000.
Another extraordinary provision of the new law permits the buyer to elect to treat the purchase as if it occurred December 31, 2008 and take the credit on his 2008 income tax return. Even if the return has already been filed, an amended tax return can be filed to obtain the credit. This is especially useful for buyers whose income qualified them for the credit in 2008 but may have too much income in 2009.
Of course, the situation can be turned around. If the buyer would be better served in taking the credit on his 2009 tax return, he can reduce his withholding or estimated tax payments now instead of waiting until tax time in 2010.
All in all, I believe this may be the impetus needed to get people off the fence and into a home. Interest rates are low, inventory is huge, and $8,000 means a lot to most people. And it is so much better than last years $7,500 credit that, as mentioned above, has to be repaid.
The sad part for first-time buyers who purchased last year is that their $7,500 credit still has to be repaid. There is no provision in the law to forgive that and simply avail oneself of the $8,000 credit that does not have to be repaid. I certainly commiserate with them – but who could have possibly foreseen what this year’s law would provide?
IMPORTANT NOTE: This is my interpretation of the basic provisions of the new credit. I have tried to simplify things to give a picture of how this credit works but I urge you to check with your tax professional or accountant for full provisions of the law.
In any case, if you have not owned a home in the past 3 years and are thinking of purchasing a home as your principal residence, now is the time to do so. There are a lot of homes on the market now in NW Arkansas and some very good deals (especially foreclosures and short sales). As the spring progresses a lot of these good buys will be snapped up.
For more information:
http://www.federalhousingtaxcredit.com/2009/faq.php#5
http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712
Tuesday, February 24, 2009
Some Good News--NW Arkansas Housing Market One of the healthiest in the nation...
This economic roller coaster that we’re all on these days has just taken another turn. Only a few days ago I wrote about Wal-Mart downsizing some 700-800 people at its corporate headquarters and the effect that might have on the overall housing situation in MW Arkansas.
Today we have good news.
Builder Online just named Fayetteville as one of the top 15 healthiest housing markets for builders in the country. In fact, Fayetteville was named #9. In today’s world, that’s quite a statement. And it comes from an independent research firm.
According to their research, the unemployment rate in Fayetteville was only 4.1% in fourth quarter 2008. Another strong factor Builder Online noted was home values dropped only 2.4% in the past year. Many, many cities suffered value declines of 10% and way up from there.
Of course Builder Online isn’t first to recognize good things about our area. Kiplinger, Sperling’s Best Places to Live, and U.S. News and World Report have already beaten them to it. Still, it’s always heartening when “outsiders” recognize what the people who live here already know. NW Arkansas is a great place to live.
The other thing is that all real estate is local. Despite “doom and gloom” in the national media, NW Arkansas is still a good place to live and to invest. There are some phenomenal “deals” out there, but now is the time to invest—low interest rates and most buyers have not hit the streets. Yet…
For more information:
http://www.builderonline.com:80/local-markets/the-healthiest-housing-markets-for-2009.aspx?page=7
Today we have good news.
Builder Online just named Fayetteville as one of the top 15 healthiest housing markets for builders in the country. In fact, Fayetteville was named #9. In today’s world, that’s quite a statement. And it comes from an independent research firm.
According to their research, the unemployment rate in Fayetteville was only 4.1% in fourth quarter 2008. Another strong factor Builder Online noted was home values dropped only 2.4% in the past year. Many, many cities suffered value declines of 10% and way up from there.
Of course Builder Online isn’t first to recognize good things about our area. Kiplinger, Sperling’s Best Places to Live, and U.S. News and World Report have already beaten them to it. Still, it’s always heartening when “outsiders” recognize what the people who live here already know. NW Arkansas is a great place to live.
The other thing is that all real estate is local. Despite “doom and gloom” in the national media, NW Arkansas is still a good place to live and to invest. There are some phenomenal “deals” out there, but now is the time to invest—low interest rates and most buyers have not hit the streets. Yet…
For more information:
http://www.builderonline.com:80/local-markets/the-healthiest-housing-markets-for-2009.aspx?page=7
Sunday, February 15, 2009
Scary
I just read a newspaper article about global warming that is positively scary. I've been watching how the North Polar icecap is decreasing and polar bears are having problems. This article appears to provide some reasons.
This has absolutely nothing to do with Fayetteville or Northwest Arkansas Real Estate, but this is a blog after all, and this article appeared to merit passing along.
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/14/AR2009021401757.html?nav=hcmodule
This has absolutely nothing to do with Fayetteville or Northwest Arkansas Real Estate, but this is a blog after all, and this article appeared to merit passing along.
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/14/AR2009021401757.html?nav=hcmodule
Thursday, February 12, 2009
I Guess NW Arkansas Isn’t Bulletproof After All…
By now everyone has heard about Walmart cutting 700 to 800 jobs at the home office in a restructuring move. This has come as a big surprise to a lot of people including me, and I’m worried about a “chilling” effect that this could have on the local economy.
As the national media proclaim doom and gloom stories about job losses, increased unemployment rates, and yet more economic stimulus measures, we thought we weren’t as bad off as other parts of the country. Walmart and other large corporate employers in NW Arkansas have provided job growth here—smaller than in past years, but at least positive growth.
The other thing is that a discount store like Walmart usually does better when times are tough as they are now. Thus we thought this would keep our area “safe” from what’s happening elsewhere. So to have even Walmart cut 5% of their positions here is significant, and could affect the already suffering housing market.
The perceptions that the economy here isn’t as robust as people thought and that there may not be as many jobs available, may prevent new people from moving here and purchasing homes. On the other hand, some of those 700 people may have difficulty finding new jobs here and selling their homes to move elsewhere. Thus the chilling effect is magnified as the number of months of housing inventory increases at a time when sales are down compared to previous years.
For me as a Realtor® I’m disappointed. Yes, Walmart may be fiscally responsible to its shareholders, but when someone you know is one of those 700 people the negative effect is felt even more sharply. I just found out that a client of mine, a nice young man to whom I have sold a home and who was going to get married in a few months, was one of those laid off. He is, of course, devastated, and trying to take stock of his situation.
Ultimately the effect of these job cuts probably can’t be measured. But the actual as well as psychological chill this has caused locally goes beyond news reports on the situation. Only time will get us out of this economic mess.
For more information:
http://www.nwanews.com/adg/News/252028/
http://www.nwanews.com/adg/Business/252088/
http://nwanews.com/bcdr/News/70632/
http://www.nwaonline.net/articles/2009/02/11/news/021109azwalmartlayoffs.txt
As the national media proclaim doom and gloom stories about job losses, increased unemployment rates, and yet more economic stimulus measures, we thought we weren’t as bad off as other parts of the country. Walmart and other large corporate employers in NW Arkansas have provided job growth here—smaller than in past years, but at least positive growth.
The other thing is that a discount store like Walmart usually does better when times are tough as they are now. Thus we thought this would keep our area “safe” from what’s happening elsewhere. So to have even Walmart cut 5% of their positions here is significant, and could affect the already suffering housing market.
The perceptions that the economy here isn’t as robust as people thought and that there may not be as many jobs available, may prevent new people from moving here and purchasing homes. On the other hand, some of those 700 people may have difficulty finding new jobs here and selling their homes to move elsewhere. Thus the chilling effect is magnified as the number of months of housing inventory increases at a time when sales are down compared to previous years.
For me as a Realtor® I’m disappointed. Yes, Walmart may be fiscally responsible to its shareholders, but when someone you know is one of those 700 people the negative effect is felt even more sharply. I just found out that a client of mine, a nice young man to whom I have sold a home and who was going to get married in a few months, was one of those laid off. He is, of course, devastated, and trying to take stock of his situation.
Ultimately the effect of these job cuts probably can’t be measured. But the actual as well as psychological chill this has caused locally goes beyond news reports on the situation. Only time will get us out of this economic mess.
For more information:
http://www.nwanews.com/adg/News/252028/
http://www.nwanews.com/adg/Business/252088/
http://nwanews.com/bcdr/News/70632/
http://www.nwaonline.net/articles/2009/02/11/news/021109azwalmartlayoffs.txt
Friday, February 06, 2009
What I Learned About Generators During the Recent Ice Storm
Well, we're mostly back to normal after the severe ice storm last week in NW Arkansas. The electricity at my home went out on Tuesday; we finally got energy again on Sunday.
As I write it’s 10 days after the storm and according to news reports, power has been restored to all but about 20,000 homes – mostly in remote areas. Sometimes just getting to those homes requires chainsaws, bulldozers, and manpower to cut a path through the downed trees and power lines.
I really don’t know the number of homes and businesses that were in the dark at the worst of the outage. Suffice it to say more than 100,000 in NW Arkansas alone with hundreds of thousands of others throughout southern Missouri and into western Kentucky.
It was cold, dark, uncomfortable, and a test of patience and resourcefulness.
People with wood stoves and gas-log fireplaces faired pretty well in keeping warm. Outdoor grills and camping stoves provided a means of cooking. Kerosene lanterns, flashlights, and candles were put to good use.
I heard Wal-Mart and other stores were totally out of D-batteries, kerosene, and good old-fashioned telephones that don't need electricity to function. Someone I know couldn’t find a chainsaw for purchase anywhere.
The really lucky people had a portable, gasoline-powered generator to provide electricity for essentials such central heat (electric blower on a gas furnace), refrigerators, lights, and a reasonable quality of life.
I didn’t know anything about generators but I learned a lot in a hurry. In case you’re “in the dark” (pardon the pun), I’ll pass along what I learned.
*Generators are relatively inexpensive and easy to operate. A medium-sized generator (rated between 3000-6000 watts) is sufficient for an average home. It can operate the electric blower on a gas furnace, keep refrigerator(s) cold and lights on. If necessary, it can also power the pump on a water well.
*An electric clothes dryer and a microwave oven might even be possible as long as everything isn’t running at the same time. For instance, once the house is warm, shut that off and switch on the refrigerator.
*If you don’t want to run extension cords all over the house, consider buying a transfer switch. You’ll need an electrician to install that but it really simplifies the process. Then all you need to do is flip switches.
*There’s a ton of information on the Internet – everything from how to figure power surge versus operating wattage to prices and availability. Just Google “portable generators” and start reading.
*Generators must never be run indoors. They must be operated in fresh, outdoor air. (I think we all know that but a safety reminder never hurts.)
Now that the worst is past, I just want to say how impressed I was with the way people banded together to help each other. People with electricity invited family and friends to stay with them. Strangers helped strangers clear roads. The outpouring of mutual support was phenomenal.
It was an adventure that affected everyone, so that now that it's over, the main greeting question is: How long were you without electricity?
For more information:
http://www.ozarksecc.com/content.cfm?id=2075
http://www.carrollecc.com/content.cfm?id=2041
http://www.swepco.com/news/outages/viewstorm.asp?stormName=January%2027%20Ice%20Storm
As I write it’s 10 days after the storm and according to news reports, power has been restored to all but about 20,000 homes – mostly in remote areas. Sometimes just getting to those homes requires chainsaws, bulldozers, and manpower to cut a path through the downed trees and power lines.
I really don’t know the number of homes and businesses that were in the dark at the worst of the outage. Suffice it to say more than 100,000 in NW Arkansas alone with hundreds of thousands of others throughout southern Missouri and into western Kentucky.
It was cold, dark, uncomfortable, and a test of patience and resourcefulness.
People with wood stoves and gas-log fireplaces faired pretty well in keeping warm. Outdoor grills and camping stoves provided a means of cooking. Kerosene lanterns, flashlights, and candles were put to good use.
I heard Wal-Mart and other stores were totally out of D-batteries, kerosene, and good old-fashioned telephones that don't need electricity to function. Someone I know couldn’t find a chainsaw for purchase anywhere.
The really lucky people had a portable, gasoline-powered generator to provide electricity for essentials such central heat (electric blower on a gas furnace), refrigerators, lights, and a reasonable quality of life.
I didn’t know anything about generators but I learned a lot in a hurry. In case you’re “in the dark” (pardon the pun), I’ll pass along what I learned.
*Generators are relatively inexpensive and easy to operate. A medium-sized generator (rated between 3000-6000 watts) is sufficient for an average home. It can operate the electric blower on a gas furnace, keep refrigerator(s) cold and lights on. If necessary, it can also power the pump on a water well.
*An electric clothes dryer and a microwave oven might even be possible as long as everything isn’t running at the same time. For instance, once the house is warm, shut that off and switch on the refrigerator.
*If you don’t want to run extension cords all over the house, consider buying a transfer switch. You’ll need an electrician to install that but it really simplifies the process. Then all you need to do is flip switches.
*There’s a ton of information on the Internet – everything from how to figure power surge versus operating wattage to prices and availability. Just Google “portable generators” and start reading.
*Generators must never be run indoors. They must be operated in fresh, outdoor air. (I think we all know that but a safety reminder never hurts.)
Now that the worst is past, I just want to say how impressed I was with the way people banded together to help each other. People with electricity invited family and friends to stay with them. Strangers helped strangers clear roads. The outpouring of mutual support was phenomenal.
It was an adventure that affected everyone, so that now that it's over, the main greeting question is: How long were you without electricity?
For more information:
http://www.ozarksecc.com/content.cfm?id=2075
http://www.carrollecc.com/content.cfm?id=2041
http://www.swepco.com/news/outages/viewstorm.asp?stormName=January%2027%20Ice%20Storm
Saturday, January 17, 2009
Have Home Prices in NW Arkansas Bottomed Out Yet?
See Video of Lawrence Yun of National Association of Realtors comment on the national housing market.
Recent reports indicate that the number of homes sold nationwide continued to drop in November of 2008. But, on the positive side of that statement, the rate of drop was smaller than in recent months.
Purchases of previously owned homes slid 8.6% in November to an annual rate of 4.49 million units.
The Pending Home Sales Index fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.
One bright note locally is Bentonville, which actually had a 5% increase in home sales in September, and Fayetteville and Rogers experienced a slight increase in October. However, sales in all of NW Arkansas were down compared to the same periods last year.
We may (or may not, depending on your particular perspective) be hitting bottom. Although prices in NW Arkansas decreased for December the decrease was less than it has been, a flattening out. Of course, we have to wait a few months yet, to see whether prices will start increasing again.
There is also a seasonal adjustment that occurs as homes sold in the winter generally sell for slightly less than in the peak months during the spring and summer. Inventory is still high (i.e. lots of homes for sale).
For the most part homeowners who do not have to sell are staying put. People who must move due to job relocations are the ones selling and they are being forced to face reality and lower the sales price dramatically in order to more the property quickly.
Foreclosures are the other part of reality that is forcing sales prices downward. Until that sector stabilizes, it will be difficult to see prices increasing again.
The Consumer Confidence Index for November was 44.9, up from 38.8 in October, which was the lowest reading since the research group started tracking the index in 1967.
The Gross Domestic Product (GDP) index shrank 0.5% in the 3rd quarter of 2008. That was worse than expected and the weakest it’s been since 2001. GDP measures the value of all goods and services produced within the U.S. and is considered the best barometer of the country's economic fitness.
The Feds have made so many moves, projections, bailouts, refusals to bailout, promises and revisions that comprehension of it all is beyond the capability of most folks. (I’ve tried rubbing my crystal ball but all I see is clouds!)
I wish I could tell you what to do and when to do it but no one can with certainty these days.
The only thing I can say is that prices are significantly down in NW Arkansas and it’s a great time to purchase a home or investment property. If you’re thinking about selling, I would say wait if you can.
On the other hand, if you are thinking about moving up to a larger home, the amount you will save on your purchase may outweigh not getting as much as you might have hoped on the sale of your existing home. In addition, interest rates are at a record low, in the 5% range.
The main thing to keep in mind is that a real estate purchase is traditionally considered a long term investment. Whether we have hit bottom or not really isn’t important from that point of view if you plan to keep the property for awhile. The speculation frenzy of the past couple of years is past, thank goodness!
For more information:
http://tinyurl.com/a4tec3
http://www.nwanews.com/adg/Business/243513/
http://news.yahoo.com/s/ap/20081125/ap_on_bi_ge/financial_meltdown
http://www.nwarktimes.com/adg/National/244604
http://arkansasbusiness.com/article.aspx?lID=78&sID=79&ms=80&cID=Z&aID=110303.54928.122429
Monday, December 22, 2008
Demand Down, Rent Prices Down, New Buildings Going Up in Fayetteville
Construction projects underway in Fayetteville, Arkansas, will add nearly 1500 rental units in the near future. That’s a rather astonishing number for a city the size of Fayetteville.
Demand for apartments in NW Arkansas has already softened and that creates pressure to lower prices. The vacancy rate is just under 10% in Fayetteville. Rogers and Springdale have vacancy rates of 10%-15%, depending on the size of the apartment.
And the new units haven’t even come on board yet.
Consumers are understandably happy when prices drop but property owners have a tough time holding their heads above water when vacancy rates increase. Added pressure is coming from homeowners who decide to rent rather than sell their homes while they wait for the market to rebound.
So, at first glance, the situation seems contradictory. But, we need to remember several factors affecting NW Arkansas in general and Fayetteville in particular.
While most of the country is suffering through a recession, NW Arkansas continues to see new people move here. Job growth is positive here. As new people arrive and go to work, they rent apartments and buy homes. Gradually (though slower than in recent years) the excess inventory of homes is shrinking.
The other thing to remember is Fayetteville is home to the University of Arkansas with its thousands and thousands of students and faculty, all of whom need places to live. I haven’t seen any recent studies of the effect of “trickle down economics” from the university’s presence but believe me when I say it is huge by anyone’s standards.
Nevertheless, for potential investors, I don’t recommend purchasing for the University market right now. The conventional wisdom says that rental properties in university towns are a good investment.
But in addition to all of the new apartments being built, there is also another factor to consider. The U of A just built 2 new dormitories in the past few years, which are absorbing a lot of upper classmen who might normally want to live off campus. The result is that many of the normal rentals near the University stand vacant.
On the other hand, for parents who want to purchase a condo or other unit for their student son or daughter to live in for the next few years, it’s a great time to purchase. Prices are down and there are a lot of properties to choose from. By the time you want to sell, the situation will have probably changed.
For other towns in NW Arkansas, there is more of a "normal" rental market, geared toward families, young professionals, and others. In that segment of the market for investors, there are some phenomenal deals, especially on foreclosed multi-family dwellings.
Of course, I don’t have my crystal ball handy, but keep in mind that real estate is cyclical. It IS a great time to buy….
For more information:
http://nwanews.com:80/nwat/News/72251/
Demand for apartments in NW Arkansas has already softened and that creates pressure to lower prices. The vacancy rate is just under 10% in Fayetteville. Rogers and Springdale have vacancy rates of 10%-15%, depending on the size of the apartment.
And the new units haven’t even come on board yet.
Consumers are understandably happy when prices drop but property owners have a tough time holding their heads above water when vacancy rates increase. Added pressure is coming from homeowners who decide to rent rather than sell their homes while they wait for the market to rebound.
So, at first glance, the situation seems contradictory. But, we need to remember several factors affecting NW Arkansas in general and Fayetteville in particular.
While most of the country is suffering through a recession, NW Arkansas continues to see new people move here. Job growth is positive here. As new people arrive and go to work, they rent apartments and buy homes. Gradually (though slower than in recent years) the excess inventory of homes is shrinking.
The other thing to remember is Fayetteville is home to the University of Arkansas with its thousands and thousands of students and faculty, all of whom need places to live. I haven’t seen any recent studies of the effect of “trickle down economics” from the university’s presence but believe me when I say it is huge by anyone’s standards.
Nevertheless, for potential investors, I don’t recommend purchasing for the University market right now. The conventional wisdom says that rental properties in university towns are a good investment.
But in addition to all of the new apartments being built, there is also another factor to consider. The U of A just built 2 new dormitories in the past few years, which are absorbing a lot of upper classmen who might normally want to live off campus. The result is that many of the normal rentals near the University stand vacant.
On the other hand, for parents who want to purchase a condo or other unit for their student son or daughter to live in for the next few years, it’s a great time to purchase. Prices are down and there are a lot of properties to choose from. By the time you want to sell, the situation will have probably changed.
For other towns in NW Arkansas, there is more of a "normal" rental market, geared toward families, young professionals, and others. In that segment of the market for investors, there are some phenomenal deals, especially on foreclosed multi-family dwellings.
Of course, I don’t have my crystal ball handy, but keep in mind that real estate is cyclical. It IS a great time to buy….
For more information:
http://nwanews.com:80/nwat/News/72251/
Thursday, December 18, 2008
Real Estate Trends Report
There’s a very smart guy out there named Stefan Swanepoel who writes something called the Real Estate Trends Report each year. Recently he posted on Active Rain (a social networking site for realtors) what he felt were the 10 most important events that affected real estate during 2008. He gave me and others permission to reproduce these as long as we credit him and the 2009 Swanepoel Real Estate Trends Report. For more information on how to obtain the full report, click on the following link: www.retrends.com
In any case, he feels that the top 10 events that affected real estate during 2008 were:
1. The Bailout: September 17th
Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.
2. The Presidential Election
In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to remove the incumbent president and elect an African American, Barak Obama as president. But he takes office at a difficult time for the US economy and has some serious challenges ahead.
3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others
Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history.
4. Facing Foreclosure Frenzy
As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.
5. Home Prices Spiral Downward
The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.
6. NAR - DOJ Settlement
Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it's back to business.
7. Brokers Go Bust
Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.
8. Keeping It Short
Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.
9. ActiveRain Explodes Past 100,000 Members
As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.
10. NAR Celebrates 100 Years
In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR's centennial birthday.
How many of these events impacted you or were/are you aware of? This is the question Swanepoel asks. For realtors, all should be able to answer this question. For the general public, probably most people were unaware of a number of these items.
For more information:
http://www.retrends.com
http://www.activerain.com
In any case, he feels that the top 10 events that affected real estate during 2008 were:
1. The Bailout: September 17th
Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.
2. The Presidential Election
In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to remove the incumbent president and elect an African American, Barak Obama as president. But he takes office at a difficult time for the US economy and has some serious challenges ahead.
3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others
Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history.
4. Facing Foreclosure Frenzy
As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.
5. Home Prices Spiral Downward
The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.
6. NAR - DOJ Settlement
Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it's back to business.
7. Brokers Go Bust
Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.
8. Keeping It Short
Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.
9. ActiveRain Explodes Past 100,000 Members
As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.
10. NAR Celebrates 100 Years
In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR's centennial birthday.
How many of these events impacted you or were/are you aware of? This is the question Swanepoel asks. For realtors, all should be able to answer this question. For the general public, probably most people were unaware of a number of these items.
For more information:
http://www.retrends.com
http://www.activerain.com
Wednesday, November 19, 2008
3rd Quarter Skyline Report
Last Friday was the Fayetteville breakfast sponsored by Arvest Bank to release the 3rd quarter Skyline report for Washington County and Northwest Arkansas. As usual Kathy Deck, director of the U of A Center for Business and Economic Research, presented the highlights of the report, but also present was Tim Yeager, professor of finance at the Sam Walton College of Business, to talk about the $700 billion “bailout” which has received much attention in the national media.
Of interest to me was his take on the Secretary of the Treasury’s redirection of funds in the TARP (Troubled Asset Relief Program—which is the official name of the bill that Congress passed) from purchasing bad assets to a capital purchase plan. Yeager is in favor of the new plan, which he says is a better use of the funds.
The original plan to purchase bad assets was a bad situation because of the difficulty of pricing the assets, according to Yeager. If the assets were priced at the current deflated values, this would represent a permanent loss on those assets. The other alternative is to wait until the assets have appreciated again.
The new plan is to purchase preferred shares of healthy banks as well as large sick banks. There would be a dividend of 5% in the first 5 years.
Yeager also presented a suggestion that Congress should prepare a new fiscal stimulus plan—“just in case.” We don’t need it now, but if such legislation were in place for the future, it would be better for assuring the financial stability of the US economic system.
Kathy Deck prefaced her remarks about the housing market in NW Arkansas with some observations about the economy. Of importance in this regard is the fact that the unemployment rate here is 4% compared to the 6.5% national employment rate. Employment opportunities are what fuel growth to the area and thus housing growth.
Employment growth here did flatten in 2006. Thus new job creation is not terrific compared with years past (e.g. 6% employment growth at the peak in July if 2005), but in comparison to the negative employment growth in the rest of the country, we’re doing OK. Current job growth in NW Arkansas is about 1% whereas jobs are being lost in the rest of the country.
I’m not much interested in commercial real estate, so I’ll focus on what’s happening in the residential and multifamily sectors.
For multifamily, the vacancy rates for 1 and 2 bedroom apartments is still very high, over 10% for the 3rd quarter of this year. The actual rate was 12.2%, the same as the rate for the 3rd quarter of 2007. According to Deck, a healthy vacancy rate is 5% or less. The rates vary by town with Bentonville the highest with a 15.7% aggregate vacancy rate (down from 17.4% in the 2nd quarter). The rate for Fayetteville was 10.9% in the 3rd quarter, and that for Springdale was 11.6%. Rogers had a decrease to 14.1%, and the lowest aggregate vacancy rate for the 3rd quarter was in Siloam Springs—10.2%.
For residential real estate the Skyline Report primarily looks at new construction. The Center for Business and Economic Research consults with planning departments of NW Arkansas communities to determine new subdivisions which have been approved and building permits which have been issued. They obtain plats and send out students to determine what’s happening on each lot in the active subdivisions. An “active” subdivision is one where construction is currently occurring or has occurred during the past year.
They classify each lot into one of 5 categories: vacant (nothing going on), housing start (slab or foundation), under construction, complete but unoccupied, and occupied.
In both Washington and Benton Counties, the number of lots in active subdivisions has increased, but the number of homes under construction has decreased. In Benton County in Q3 of 2006, there were 12,454 lots, in Q3 of 2007 there were 16,313 lots, and in Q3 of 2008 there were 16,684 lots. In Washington County, there were 8337 lots in Q3 of 2006. In Q3 of 2007 there were 10,450 lots and in Q3 of 2008 there were 10,920 lots in active subdivisions.
There were approximately 100 homes under construction in Fayetteville in Q3, and approximately 240 complete but unoccupied homes. In Springdale there were approximately 50 homes under construction and about 120 complete but unoccupied homes. The absorption rate has been down from past quarters. This means that fewer homes are being sold.
Altogether current inventory of new homes was up in all towns of NW Arkansas with 55.8 months inventory for the 3rd quarter. What this means is that at the current rate of sales, it will take 55.8 months to sell all of the new homes on the market (almost 6 years), assuming that no additional homes are built. This does not take into account existing homes which are also on the market.
One factor of importance is the existence of a lot of foreclosure properties, which are causing a continuing downward pressure on prices. According to Deck, there are 747 bank-owned properties in Benton County, up from 502 six months ago. In Washington County there are 475 bank-owned properties up from 276 six months ago.
Altogether the price of homes sold has continued to decrease in Washington County, but in Benton County, prices have shown less inclination to decline. In Benton County in the 3rd quarter of 2008 the average sales price of existing homes declined by 1.6% and in Washington County by 4.1%.
Of more concern is the fact that from May 16, 2008 to August 15, 2008, there were 1662 existing homes sold in Benton and Washington Counties. This is a decline of 17.5% from the same time period last year.
From my point of view this is a great time to purchase a home. Prices have declined significantly and there are a lot of homes on the market, both new and resale. There are a lot of great deals now.
And for those folks who are waiting for the bottom of the market, we won’t really know when the bottom occurs until after it happens. And then prices will be on their way up again.
The important factor is that real estate investment is not like the stock market. Real estate is a long term investment, not short term. If you want to purchase a home now, plan on holding it at least 5 years to realize any appreciation. So if the market goes down a little more—bottom line is that it doesn’t matter. By the time 5 years have passed, prices will be on the way up again. Real estate is cyclical.
Of interest to me was his take on the Secretary of the Treasury’s redirection of funds in the TARP (Troubled Asset Relief Program—which is the official name of the bill that Congress passed) from purchasing bad assets to a capital purchase plan. Yeager is in favor of the new plan, which he says is a better use of the funds.
The original plan to purchase bad assets was a bad situation because of the difficulty of pricing the assets, according to Yeager. If the assets were priced at the current deflated values, this would represent a permanent loss on those assets. The other alternative is to wait until the assets have appreciated again.
The new plan is to purchase preferred shares of healthy banks as well as large sick banks. There would be a dividend of 5% in the first 5 years.
Yeager also presented a suggestion that Congress should prepare a new fiscal stimulus plan—“just in case.” We don’t need it now, but if such legislation were in place for the future, it would be better for assuring the financial stability of the US economic system.
Kathy Deck prefaced her remarks about the housing market in NW Arkansas with some observations about the economy. Of importance in this regard is the fact that the unemployment rate here is 4% compared to the 6.5% national employment rate. Employment opportunities are what fuel growth to the area and thus housing growth.
Employment growth here did flatten in 2006. Thus new job creation is not terrific compared with years past (e.g. 6% employment growth at the peak in July if 2005), but in comparison to the negative employment growth in the rest of the country, we’re doing OK. Current job growth in NW Arkansas is about 1% whereas jobs are being lost in the rest of the country.
I’m not much interested in commercial real estate, so I’ll focus on what’s happening in the residential and multifamily sectors.
For multifamily, the vacancy rates for 1 and 2 bedroom apartments is still very high, over 10% for the 3rd quarter of this year. The actual rate was 12.2%, the same as the rate for the 3rd quarter of 2007. According to Deck, a healthy vacancy rate is 5% or less. The rates vary by town with Bentonville the highest with a 15.7% aggregate vacancy rate (down from 17.4% in the 2nd quarter). The rate for Fayetteville was 10.9% in the 3rd quarter, and that for Springdale was 11.6%. Rogers had a decrease to 14.1%, and the lowest aggregate vacancy rate for the 3rd quarter was in Siloam Springs—10.2%.
For residential real estate the Skyline Report primarily looks at new construction. The Center for Business and Economic Research consults with planning departments of NW Arkansas communities to determine new subdivisions which have been approved and building permits which have been issued. They obtain plats and send out students to determine what’s happening on each lot in the active subdivisions. An “active” subdivision is one where construction is currently occurring or has occurred during the past year.
They classify each lot into one of 5 categories: vacant (nothing going on), housing start (slab or foundation), under construction, complete but unoccupied, and occupied.
In both Washington and Benton Counties, the number of lots in active subdivisions has increased, but the number of homes under construction has decreased. In Benton County in Q3 of 2006, there were 12,454 lots, in Q3 of 2007 there were 16,313 lots, and in Q3 of 2008 there were 16,684 lots. In Washington County, there were 8337 lots in Q3 of 2006. In Q3 of 2007 there were 10,450 lots and in Q3 of 2008 there were 10,920 lots in active subdivisions.
There were approximately 100 homes under construction in Fayetteville in Q3, and approximately 240 complete but unoccupied homes. In Springdale there were approximately 50 homes under construction and about 120 complete but unoccupied homes. The absorption rate has been down from past quarters. This means that fewer homes are being sold.
Altogether current inventory of new homes was up in all towns of NW Arkansas with 55.8 months inventory for the 3rd quarter. What this means is that at the current rate of sales, it will take 55.8 months to sell all of the new homes on the market (almost 6 years), assuming that no additional homes are built. This does not take into account existing homes which are also on the market.
One factor of importance is the existence of a lot of foreclosure properties, which are causing a continuing downward pressure on prices. According to Deck, there are 747 bank-owned properties in Benton County, up from 502 six months ago. In Washington County there are 475 bank-owned properties up from 276 six months ago.
Altogether the price of homes sold has continued to decrease in Washington County, but in Benton County, prices have shown less inclination to decline. In Benton County in the 3rd quarter of 2008 the average sales price of existing homes declined by 1.6% and in Washington County by 4.1%.
Of more concern is the fact that from May 16, 2008 to August 15, 2008, there were 1662 existing homes sold in Benton and Washington Counties. This is a decline of 17.5% from the same time period last year.
From my point of view this is a great time to purchase a home. Prices have declined significantly and there are a lot of homes on the market, both new and resale. There are a lot of great deals now.
And for those folks who are waiting for the bottom of the market, we won’t really know when the bottom occurs until after it happens. And then prices will be on their way up again.
The important factor is that real estate investment is not like the stock market. Real estate is a long term investment, not short term. If you want to purchase a home now, plan on holding it at least 5 years to realize any appreciation. So if the market goes down a little more—bottom line is that it doesn’t matter. By the time 5 years have passed, prices will be on the way up again. Real estate is cyclical.
Thursday, November 13, 2008
PSST – Have I got a Cave for You!
I recently heard about caves for sale in the beautiful Ozark Mountains of NW Arkansas. Might just be the answer to someone’s idea of solitude in a unique setting complete with stalactites and stalagmites. Temperatures hold steady at 59 degrees Fahrenheit year round.
There are stairs leading into two caves and electricity is already in place! I don’t think there is indoor plumbing, though.
If that’s not enough to interest you, you might want to consider the gift shop building and 29 acres of land included in the offer.
The site is called Mystic Caverns, located just a few miles south of Harrison, Arkansas (not very far from Branson, Missouri).
The asking price has been reduced from $1.2 million to $899,000.
For more information:
Ebay auction at http://tinyurl.com/6lpwvg
Mystic Caverns website: http://tinyurl.com/6lpwvg
There are stairs leading into two caves and electricity is already in place! I don’t think there is indoor plumbing, though.
If that’s not enough to interest you, you might want to consider the gift shop building and 29 acres of land included in the offer.
The site is called Mystic Caverns, located just a few miles south of Harrison, Arkansas (not very far from Branson, Missouri).
The asking price has been reduced from $1.2 million to $899,000.
For more information:
Ebay auction at http://tinyurl.com/6lpwvg
Mystic Caverns website: http://tinyurl.com/6lpwvg
Recession or Depression – Which is it?
Recessions and depressions have been a fact of life since before statistics were kept. And, unfortunately, the United States is currently in one or the other.
A recession is defined by the National Bureau of Economic Research as a "A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."
If a recession continues long enough, it becomes a depression.
Either term is bad news for everyone: individuals, businesses, and government at all levels. The U.S. and many of the industrialized nations of the world are suffering. Unemployment is high, food prices are high, oil prices are high (though lower than a few weeks ago), and inflation is high. Retail sales are at such low levels they have caused another severe drop in the stock market. All this means pessimism and worry are high.
All told, stock markets have suffered unthinkable losses. The misery is widespread - U.S. to Europe and Iceland to Australia.
Our economy is largely based on the availability of easily obtained credit – and access to credit is practically non-existent at the present time. Manufacturers are suffering major problems in financing purchases and payrolls. Sales of homes are stagnant because individuals are finding it difficult to get mortgages. Automobile and retail sales have fallen flat because it’s tough to get a loan.
Now the federal government has stepped in to actually take partial ownership in several of the nation’s largest banks. The initial investment is $125 billion and it is supposed to stimulate interbank lending and revive the stagnant credit markets. If and how the plan will work remains to be seen.
We are in uncertain times. Some of the brightest and most experienced minds are working on all aspects of the mess we’re in. Let’s hope they find a way out soon.
But, history shows we will get through this and once again see the economy on an upward swing.
You might find it interesting to read a Wikipedia article I came across that includes a concise list of past U.S. recessions, their causes and duration:
http://en.wikipedia.org:80/wiki/List_of_recessions_in_the_United_States
A recession is defined by the National Bureau of Economic Research as a "A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."
If a recession continues long enough, it becomes a depression.
Either term is bad news for everyone: individuals, businesses, and government at all levels. The U.S. and many of the industrialized nations of the world are suffering. Unemployment is high, food prices are high, oil prices are high (though lower than a few weeks ago), and inflation is high. Retail sales are at such low levels they have caused another severe drop in the stock market. All this means pessimism and worry are high.
All told, stock markets have suffered unthinkable losses. The misery is widespread - U.S. to Europe and Iceland to Australia.
Our economy is largely based on the availability of easily obtained credit – and access to credit is practically non-existent at the present time. Manufacturers are suffering major problems in financing purchases and payrolls. Sales of homes are stagnant because individuals are finding it difficult to get mortgages. Automobile and retail sales have fallen flat because it’s tough to get a loan.
Now the federal government has stepped in to actually take partial ownership in several of the nation’s largest banks. The initial investment is $125 billion and it is supposed to stimulate interbank lending and revive the stagnant credit markets. If and how the plan will work remains to be seen.
We are in uncertain times. Some of the brightest and most experienced minds are working on all aspects of the mess we’re in. Let’s hope they find a way out soon.
But, history shows we will get through this and once again see the economy on an upward swing.
You might find it interesting to read a Wikipedia article I came across that includes a concise list of past U.S. recessions, their causes and duration:
http://en.wikipedia.org:80/wiki/List_of_recessions_in_the_United_States
Wednesday, November 05, 2008
Presidential Elections and the NW Arkansas Real Estate Market
Normally I try not to get political, but yesterday was election day and it appears that Barack Obama will be our new president starting at the end of January. It was a hard-fought campaign.
His comments last evening about hope and trying to solve the current economic dilemma of this country were very encouraging. And John McCain's speech also referred to the necessity of all of us to work together to solve the dire situation that this country confronts.
In NW Arkansas we are kind of lucky. We have some major corporations with home offices here, and when times are tough, Walmart does well. At a time when (in the nation as a whole) jobs are being lost, there are still jobs being created in NW Arkansas, although not at the accelerated pace of the past few years. And jobs bring people to our area (also those great "best places to live" articles in major magazines).
There are homes being sold here, and the real estate market is not as dire as in other parts of the country. It's actually a great time to purchase a home--lots of great values available. But if you are a seller, you need to realize that it IS a buyer's market, and there are still many homes on the market. If you are lucky enough to actually get an offer on your home, it will probably be much less than what you were hoping for--work with it. And if you have an older home, you need to be very aggressive about pricing (i.e. update it as much as possible and/or price it much lower than you ever thought you should). Prices have come down, there are lots of foreclosures on the market, and an older home is competing with new homes, which (in many cases) are being sold at cost.
My recommendation is that if you don't need to sell right now, don't. Rent your home or hang in there until the market turns around, which it will eventually. I don't have my crystal ball handy, but I'm thinking at least wait until next year. If you purchased your home at the peak of the market, you may have to wait longer to sell without losing money.
In any case, we're finally past the election campaign, and perhaps the new spirit of optimism will help the market improve and will spur the economy. Let's hope so.
His comments last evening about hope and trying to solve the current economic dilemma of this country were very encouraging. And John McCain's speech also referred to the necessity of all of us to work together to solve the dire situation that this country confronts.
In NW Arkansas we are kind of lucky. We have some major corporations with home offices here, and when times are tough, Walmart does well. At a time when (in the nation as a whole) jobs are being lost, there are still jobs being created in NW Arkansas, although not at the accelerated pace of the past few years. And jobs bring people to our area (also those great "best places to live" articles in major magazines).
There are homes being sold here, and the real estate market is not as dire as in other parts of the country. It's actually a great time to purchase a home--lots of great values available. But if you are a seller, you need to realize that it IS a buyer's market, and there are still many homes on the market. If you are lucky enough to actually get an offer on your home, it will probably be much less than what you were hoping for--work with it. And if you have an older home, you need to be very aggressive about pricing (i.e. update it as much as possible and/or price it much lower than you ever thought you should). Prices have come down, there are lots of foreclosures on the market, and an older home is competing with new homes, which (in many cases) are being sold at cost.
My recommendation is that if you don't need to sell right now, don't. Rent your home or hang in there until the market turns around, which it will eventually. I don't have my crystal ball handy, but I'm thinking at least wait until next year. If you purchased your home at the peak of the market, you may have to wait longer to sell without losing money.
In any case, we're finally past the election campaign, and perhaps the new spirit of optimism will help the market improve and will spur the economy. Let's hope so.
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