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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
Tuesday, February 24, 2009
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.
Tuesday, October 21, 2008
The Jones Center for Families Hosts Fall Festival
The Jones Center for Families in Springdale, Arkansas is an absolute gem! Remember the old saying, “You get what you pay for?” Well, the Jones Center proves the saying wrong.
The Center welcomes everyone from NW Arkansas and the surrounding areas. Residency is not a requirement. Neither is money a requirement. There is only one requirement - all visitors must behave as ladies and gentlemen.
Virtually everything is FREE.
The Center offers an unbelievable array of activities for individuals and families. Just imagine participating at no charge in:
- Ice skating on a regulation size rink (skates provided).
- Swimming or exercising in two pools.
- Programs for all ages up to and including seniors.
- Day care while a parent is using the center.
- Fitness center containing stationary weight and cardiovascular equipment.
- 300-seat chapel for weddings, receptions, showers, etc.
- Family movies.
- A one-mile walking trail.
- Nine-hole disc golf course.
- Playground accessible to all, including handicapped.
- 30 computers including Internet access.
- More than 25 meeting rooms of all sizes for birthday parties and celebrations or non-profit business groups.
As if all that were not enough, the Jones Center also hosts activities throughout the year such as the Fall Festival coming up next Saturday, October 26. At least 8,000 children and parents arrive annually for fun, music, entertainment, physical activities, arts and crafts, and food – at no cost.
There are also special programs to keep kids busy during spring and winter breaks. During the summer months, free concerts are held on the lawn.
You can also take advantage of various educational opportunities, such smoking cessation, safe baby-sitting instruction, and preparing your child to succeed.
The Jones Center for Families has been an important part of NW Arkansas since its inception in 1996. I really cannot paint a complete picture in this short space of everything it offers to the public. Seeing is believing - and I encourage you to do just that.
The Jones Center has always shone like a beacon. If you haven’t been there yet, check it out! In these tough economic times, it might be just what you and your family are looking for.
For more information:
http://www.jonesnet.org/index.html
The Center welcomes everyone from NW Arkansas and the surrounding areas. Residency is not a requirement. Neither is money a requirement. There is only one requirement - all visitors must behave as ladies and gentlemen.
Virtually everything is FREE.
The Center offers an unbelievable array of activities for individuals and families. Just imagine participating at no charge in:
- Ice skating on a regulation size rink (skates provided).
- Swimming or exercising in two pools.
- Programs for all ages up to and including seniors.
- Day care while a parent is using the center.
- Fitness center containing stationary weight and cardiovascular equipment.
- 300-seat chapel for weddings, receptions, showers, etc.
- Family movies.
- A one-mile walking trail.
- Nine-hole disc golf course.
- Playground accessible to all, including handicapped.
- 30 computers including Internet access.
- More than 25 meeting rooms of all sizes for birthday parties and celebrations or non-profit business groups.
As if all that were not enough, the Jones Center also hosts activities throughout the year such as the Fall Festival coming up next Saturday, October 26. At least 8,000 children and parents arrive annually for fun, music, entertainment, physical activities, arts and crafts, and food – at no cost.
There are also special programs to keep kids busy during spring and winter breaks. During the summer months, free concerts are held on the lawn.
You can also take advantage of various educational opportunities, such smoking cessation, safe baby-sitting instruction, and preparing your child to succeed.
The Jones Center for Families has been an important part of NW Arkansas since its inception in 1996. I really cannot paint a complete picture in this short space of everything it offers to the public. Seeing is believing - and I encourage you to do just that.
The Jones Center has always shone like a beacon. If you haven’t been there yet, check it out! In these tough economic times, it might be just what you and your family are looking for.
For more information:
http://www.jonesnet.org/index.html
Friday, October 17, 2008
Chili Cook-off Benefit for Fayetteville Meals on Wheels
On Monday, October 20 (next Monday evening) between 6:00 and 8:00 p.m. the 4th Annual Keller Williams Chili Cook-off will occur at the Keller Williams offices at 2418 E. Joyce Blvd. Proceeds will go to benefit the Fayetteville Meals on Wheels Program. Almost 20 cooks will be competing, so whether you like your chili hot and spicy or mild or somewhere between, there should be something for everyone’s taste. Adult tickets are $5.00 and kids are $2.00. All you can eat with all of the fixings. Hope to see you there.
FYI
A couple of interesting tidbits for those who might have deep pockets, despite the ailing economy, and have special needs or interests.
Britney Spears’ home is on the market for a mere $7.9M. Click the following link for pictures and information.
http://www.sothebysrealty.com/PropertyDetails.aspx?R=104140528&WT.mc_id=Trulia
And for those old enough to remember Roy Rogers, his ranch has been renovated and updated and is now on the market. No price given, but if you click on the following link you can get more detailed information.
http://rismedia.com/wp/2008-10-16/fridays-featured-listing-renowned-roy-rogers-double-r-bar-ranch/
Britney Spears’ home is on the market for a mere $7.9M. Click the following link for pictures and information.
http://www.sothebysrealty.com/PropertyDetails.aspx?R=104140528&WT.mc_id=Trulia
And for those old enough to remember Roy Rogers, his ranch has been renovated and updated and is now on the market. No price given, but if you click on the following link you can get more detailed information.
http://rismedia.com/wp/2008-10-16/fridays-featured-listing-renowned-roy-rogers-double-r-bar-ranch/
Tuesday, October 14, 2008
Bella Vista, Arkansas – In Top 10 Healthy Places to Retire
U.S. News and World Report editors have selected beautiful Bella Vista, Arkansas as one of the top 10 healthy places to retire.
Not long ago Bella Vista was a quiet little village nestled in the rolling hills of the Ozarks, just south of Missouri. Now it has grown up and become a city of more than 24,000 people with more arriving each year.
And why not? Add recreational facilities, lakes, golf, tennis, swimming and much more to natural beauty and clean air and the result is Bella Vista.
Homes are very affordable by anyone’s standards and neighborhoods are well maintained. If you are looking for your own piece of the good life, take a look at Bella Vista.
For more information:
http://www.usnews.com/articles/business/best-places-to-retire/2008/09/18/americas-best-healthy-places-to-retire.html
Search for homes:
http://www.nwarkansashomesearch.com/
http://www.findfayettevillehomes.com/
Not long ago Bella Vista was a quiet little village nestled in the rolling hills of the Ozarks, just south of Missouri. Now it has grown up and become a city of more than 24,000 people with more arriving each year.
And why not? Add recreational facilities, lakes, golf, tennis, swimming and much more to natural beauty and clean air and the result is Bella Vista.
Homes are very affordable by anyone’s standards and neighborhoods are well maintained. If you are looking for your own piece of the good life, take a look at Bella Vista.
For more information:
http://www.usnews.com/articles/business/best-places-to-retire/2008/09/18/americas-best-healthy-places-to-retire.html
Search for homes:
http://www.nwarkansashomesearch.com/
http://www.findfayettevillehomes.com/
Saturday, October 04, 2008
Property Taxes are Due
Just a quick reminder that the deadline to pay property taxes is October 10.
Many home owners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. When tax bills are sent out in the spring, the bank pays the property tax. If this is your situation, you can relax since your property taxes have already been paid.But if your bank is not paying your property taxes as part of your mortgage and you didn't pay them last spring when the bills were sent out, then you only have a few more days to pay them. And don’t forget those pesky personal property taxes on cars, trucks, boats, etc. Those taxes are also due now, if you didn't already pay them when you got your bill last spring.
There was an option to pay taxes in three payments so if you took advantage of that, don’t forget the third and final payment is due October 10.
Late payments incur an automatic 10% penalty plus interest.
In addition to paying in person or mailing a check, Washington County offers an ePayment Service. You can pay with a Visa, MasterCard or Discover credit card and the funds will be electronically deducted from your checking account. The important thing to note if using this service is a processing fee will also be deducted. The county website states, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”
As best I could determine, Benton County does not offer an ePayment Service but you can pay over the telephone, in person, or snail-mail.
The web addresses for Washington and Benton counties are:
http://www.co.washington.ar.us
http://www.co.benton.ar.us
Many home owners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. When tax bills are sent out in the spring, the bank pays the property tax. If this is your situation, you can relax since your property taxes have already been paid.But if your bank is not paying your property taxes as part of your mortgage and you didn't pay them last spring when the bills were sent out, then you only have a few more days to pay them. And don’t forget those pesky personal property taxes on cars, trucks, boats, etc. Those taxes are also due now, if you didn't already pay them when you got your bill last spring.
There was an option to pay taxes in three payments so if you took advantage of that, don’t forget the third and final payment is due October 10.
Late payments incur an automatic 10% penalty plus interest.
In addition to paying in person or mailing a check, Washington County offers an ePayment Service. You can pay with a Visa, MasterCard or Discover credit card and the funds will be electronically deducted from your checking account. The important thing to note if using this service is a processing fee will also be deducted. The county website states, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”
As best I could determine, Benton County does not offer an ePayment Service but you can pay over the telephone, in person, or snail-mail.
The web addresses for Washington and Benton counties are:
http://www.co.washington.ar.us
http://www.co.benton.ar.us
Sunday, September 21, 2008
Foreclosures in NW Arkansas
In an effort to bring you current information regarding foreclosures in Benton and Washington Counties, I’ve read enough statistics to make my head spin. I think it all comes down to the old saying, “everything is relative.”
Overall, the Arkansas foreclosure rate ranks right about in the middle. There are 26 states with higher foreclosures rates. The national average is one foreclosure for every 416 homes but the Arkansas rate is ‘only’ one for every 1099 homes.
Four states make everything else look good. Nevada is #1, California #2, Arizona #3, and Florida #4. It’s hard to imagine that 1 in every 91 homes in Nevada has received a foreclosure notice!
In Benton and Washington Counties, the July 2008 rate was closer to the national average - Benton County one for every 418 homes; Washington County – one for every 404 homes.
Arvest Bank took an innovative step to sell approximately 170 properties it had foreclosed on by holding one big auction in early August. Reserves were placed on all but five properties, meaning the bank would have final decision on whether to accept the offer. Arvest has not disclosed final results but in some cases potential buyers and the bank will have an opportunity to renegotiate terms.
Overall, I think it was both a bold move and a good idea. Nothing of that size has been done previously in NW Arkansas or perhaps all of Arkansas. Banks have become saddled with property they never wanted to own and they need to get them off their books.
Foreclosed properties drive down the price of surrounding homes. The sooner they are all sold, the sooner the market can begin to normalize.
For more information:
http://www.nwarktimes.com/adg/News/232968
http://www.nwarktimes.com/adg/Business_Matters/233953
http://www.nwarktimes.com/adg/News/233166
http://www.nwarktimes.com/adg/Business/233671
http://www.nwaonline.net/articles/2008/08/19/business/082008foreclosures.txt
http://www.nwarktimes.com/adg/National/236465
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=5163&accnt=64847#statetable
Overall, the Arkansas foreclosure rate ranks right about in the middle. There are 26 states with higher foreclosures rates. The national average is one foreclosure for every 416 homes but the Arkansas rate is ‘only’ one for every 1099 homes.
Four states make everything else look good. Nevada is #1, California #2, Arizona #3, and Florida #4. It’s hard to imagine that 1 in every 91 homes in Nevada has received a foreclosure notice!
In Benton and Washington Counties, the July 2008 rate was closer to the national average - Benton County one for every 418 homes; Washington County – one for every 404 homes.
Arvest Bank took an innovative step to sell approximately 170 properties it had foreclosed on by holding one big auction in early August. Reserves were placed on all but five properties, meaning the bank would have final decision on whether to accept the offer. Arvest has not disclosed final results but in some cases potential buyers and the bank will have an opportunity to renegotiate terms.
Overall, I think it was both a bold move and a good idea. Nothing of that size has been done previously in NW Arkansas or perhaps all of Arkansas. Banks have become saddled with property they never wanted to own and they need to get them off their books.
Foreclosed properties drive down the price of surrounding homes. The sooner they are all sold, the sooner the market can begin to normalize.
For more information:
http://www.nwarktimes.com/adg/News/232968
http://www.nwarktimes.com/adg/Business_Matters/233953
http://www.nwarktimes.com/adg/News/233166
http://www.nwarktimes.com/adg/Business/233671
http://www.nwaonline.net/articles/2008/08/19/business/082008foreclosures.txt
http://www.nwarktimes.com/adg/National/236465
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=5163&accnt=64847#statetable
Saturday, September 13, 2008
Bikes, Blues and BBQ in Fayetteville, Arkansas
It’s that time of year again. Time when a few hundred thousand people will descend on Fayetteville for the 9th Annual Bikes, Blues and BBQ Motorcycle Rally September 24-27.
BB & BBQ bills itself as the largest charitable bike rally in the United States! Last year more than $100,000 was donated to local charities. The rally is self-funded and does not receive any government funding.
BB & BBQ is fun for the whole family. There are the bikes, of course, which are always a sight to see. Entertainment is on various stages afternoons and evenings - much of it free. Plus you won’t want to miss an opportunity to taste some serious cooking during the barbecue cook off competition.
The raffle items this year include a Harley-Davidson Rocker C motorcycle.
Fayetteville Firefighters Association will again host the Poker Run which last year raised almost $9,000 for charity.
Y’all come!
For more information:
http://www.bikesbluesandbbq.org/
BB & BBQ bills itself as the largest charitable bike rally in the United States! Last year more than $100,000 was donated to local charities. The rally is self-funded and does not receive any government funding.
BB & BBQ is fun for the whole family. There are the bikes, of course, which are always a sight to see. Entertainment is on various stages afternoons and evenings - much of it free. Plus you won’t want to miss an opportunity to taste some serious cooking during the barbecue cook off competition.
The raffle items this year include a Harley-Davidson Rocker C motorcycle.
Fayetteville Firefighters Association will again host the Poker Run which last year raised almost $9,000 for charity.
Y’all come!
For more information:
http://www.bikesbluesandbbq.org/
Monday, September 08, 2008
No Matter How You Look at it, NW Arkansas is a Great Place to Live!
As the days start getting a little cooler and we move into fall, one of my favorite times of year,
I thought I’d mention that NW Arkansas has been selected yet again as being in the top-ten best places to live, raise a family, work, and retire. Kiplinger Magazine recently published two articles highlighting Fayetteville and the surrounding area.
Of course, Kiplinger isn’t the only authority on the subject. U.S. News & World Report, Sperling’s Best Places, Forbes and others have all placed NW Arkansas in the top ten of their recent surveys. My family and I moved here 15 years ago and we continue to be glad we did.
NW Arkansas has a great reputation, and rightfully so.
Housing is very affordable. Cost of living is low compared to most places. On a scale where 100 is considered ‘average’ for the country, NW Arkansas comes in at a very respectable 90.
Air is clear and clean. The natural beauty of the Ozarks is everywhere. There’s a big push to go ‘green.’ The area is attracting businesses and industries that are not only non-polluting but that also are in the sustainability business. (Think consulting, water purification, packaging, electronics and lighting.)
The climate is moderate during all four seasons. Springtime is gorgeous with flowering dogwoods and redbuds everywhere. Summer is not bad by most standards. As I write this (in mid-August) my windows are open and a gentle breeze is coming in. Autumn is more beautiful here than outsiders imagine. Gold and red leaves color the rolling hillsides, some years more spectacular than others. Winters are generally mild - some snow that usually doesn’t hang around more than a few days. I grew up in northern Minnesota where temperatures of minus 30 degrees are common so I think it’s positively balmy here. I have friends who moved here in 2004 and they have yet to pick up a snow shovel. Of course there are days in summer that I wish were cooler and winter days I wish were warmer, but I’ve said that no matter where I lived.)
Even in these tough times, the economy continues to expand. Unemployment is low, falling one half a percentage point to 4.5% in Arkansas for July 2008. That’s the lowest level since April 2001, according to the U. S. Bureau of Labor Statistics.
Health care availability is excellent and quality is high.
People are friendly and polite.
The University of Arkansas in Fayetteville offers all types of sporting events and free classes to people over age 65.
Sports and recreational activities abound. There’s Beaver Lake with more than 400 miles of shoreline for swimming, boating, and fishing. There are festivals such as Bikes, Blues and BBQ, farmers’ markets, world-class golf, polo, minor-league baseball and many more activities every weekend.
Broadway shows and major stars appear regularly at the Walton Arts Center in Fayetteville.
But mainly it’s the beauty of the Ozarks coupled with affordable housing that makes NW Arkansas so appealing.
Prices have come down in the past year making housing even more affordable. At the present time, you can buy a brand new 3 bedroom, 2 bath, brick home for less than $150,000. There are previously owned homes for less. Just about anything you’ve dreamed about is available at great prices.
Go to my website http://www.judyluna.com/ and click on “Search for Homes” to do your own search. As always, if I can be of help, don’t hesitate to call me at (479) 966-0435.
Two notes worth mentioning:
The Chamber of Commerce did not ask me to write this article!
The population figure of 419,455 mentioned at http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html includes all of Washington, Benton, and Carroll counties in NW Arkansas plus McDonald County in SW Missouri. The actual population of the City of Fayetteville is approximately 68,000.
For more information:
http://www.judyluna.com/
http://www.kiplinger.com/features/archives/2008/07/real-estate-prices-in-our-best-cities-2008.html?kipad_id=47 (where you can compare housing costs in different price ranges)
http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html
http://www.arkansas.com/city-listings/city_detail.aspx?city=War+Eagle
I thought I’d mention that NW Arkansas has been selected yet again as being in the top-ten best places to live, raise a family, work, and retire. Kiplinger Magazine recently published two articles highlighting Fayetteville and the surrounding area.
Of course, Kiplinger isn’t the only authority on the subject. U.S. News & World Report, Sperling’s Best Places, Forbes and others have all placed NW Arkansas in the top ten of their recent surveys. My family and I moved here 15 years ago and we continue to be glad we did.
NW Arkansas has a great reputation, and rightfully so.
Housing is very affordable. Cost of living is low compared to most places. On a scale where 100 is considered ‘average’ for the country, NW Arkansas comes in at a very respectable 90.
Air is clear and clean. The natural beauty of the Ozarks is everywhere. There’s a big push to go ‘green.’ The area is attracting businesses and industries that are not only non-polluting but that also are in the sustainability business. (Think consulting, water purification, packaging, electronics and lighting.)
The climate is moderate during all four seasons. Springtime is gorgeous with flowering dogwoods and redbuds everywhere. Summer is not bad by most standards. As I write this (in mid-August) my windows are open and a gentle breeze is coming in. Autumn is more beautiful here than outsiders imagine. Gold and red leaves color the rolling hillsides, some years more spectacular than others. Winters are generally mild - some snow that usually doesn’t hang around more than a few days. I grew up in northern Minnesota where temperatures of minus 30 degrees are common so I think it’s positively balmy here. I have friends who moved here in 2004 and they have yet to pick up a snow shovel. Of course there are days in summer that I wish were cooler and winter days I wish were warmer, but I’ve said that no matter where I lived.)
Even in these tough times, the economy continues to expand. Unemployment is low, falling one half a percentage point to 4.5% in Arkansas for July 2008. That’s the lowest level since April 2001, according to the U. S. Bureau of Labor Statistics.
Health care availability is excellent and quality is high.
People are friendly and polite.
The University of Arkansas in Fayetteville offers all types of sporting events and free classes to people over age 65.
Sports and recreational activities abound. There’s Beaver Lake with more than 400 miles of shoreline for swimming, boating, and fishing. There are festivals such as Bikes, Blues and BBQ, farmers’ markets, world-class golf, polo, minor-league baseball and many more activities every weekend.
Broadway shows and major stars appear regularly at the Walton Arts Center in Fayetteville.
But mainly it’s the beauty of the Ozarks coupled with affordable housing that makes NW Arkansas so appealing.
Prices have come down in the past year making housing even more affordable. At the present time, you can buy a brand new 3 bedroom, 2 bath, brick home for less than $150,000. There are previously owned homes for less. Just about anything you’ve dreamed about is available at great prices.
Go to my website http://www.judyluna.com/ and click on “Search for Homes” to do your own search. As always, if I can be of help, don’t hesitate to call me at (479) 966-0435.
Two notes worth mentioning:
The Chamber of Commerce did not ask me to write this article
The population figure of 419,455 mentioned at http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html includes all of Washington, Benton, and Carroll counties in NW Arkansas plus McDonald County in SW Missouri. The actual population of the City of Fayetteville is approximately 68,000.
For more information:
http://www.judyluna.com/
http://www.kiplinger.com/features/archives/2008/07/real-estate-prices-in-our-best-cities-2008.html?kipad_id=47 (where you can compare housing costs in different price ranges)
http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html
http://www.arkansas.com/city-listings/city_detail.aspx?city=War+Eagle
Saturday, August 30, 2008
First Time Homebuyer Tax Credit Explained
There has been so much talk about the recently enacted “Housing and Economic Recovery Act of 2008” and its numerous, complicated provisions that I thought I’d take a few moments to summarize the part you are probably most interested in – the First Time Homebuyer Tax Credit.
You are considered a first-time homebuyer if you have not had any ownership interest in a home in the 3-year period preceding date of purchase.
Closing date of the home must be between April 9, 2008 and June 30, 2009.
The tax credit is 10% of the purchase price up to a maximum credit of $7,500.
A single person with income up to $75,000 qualifies for the full credit. Income between $75,000 and $95,000 qualifies for a prorated portion of the $7,500 credit.
Married couples with income up to $150,000 qualify for the full credit. Income between $150,000 and $170,000 qualifies for a prorated portion of the $7,500 credit.
The credit will be applied against income tax liability. When the tax return is compiled in the usual manner, the credit would be used to lower tax liability dollar for dollar. For example, if total tax liability was $9,000, the credit would reduce the liability to $1,500. This has nothing to do with how much withholding you may have already paid. If your tax liability was $9,000 and you had already paid in $9,000 through withholding, you would receive a check for $7,500.
If total tax liability was $1,000, and you had not paid any withholding, the excess credit of $6,500 would be refunded to the taxpayer.
There are no provisions to get the credit before filing the income tax return in 2009. However, a homebuyer who qualifies for the credit could immediately reduce his withholding at his place of employment (or reduce estimated payments to IRS).
But there is a catch. It’s not “free money.”
The credit has been referred to as an interest-free loan, and with good reason. The credit must actually be repaid at the rate of 6.67% ($502.50) per year for 15 years, beginning with the filing of the 2010 tax return in spring of 2011. No interest will be charged. Let’s say a taxpayer was due a refund of $1,000 on his 2010 return. His refund would be reduced to $497.50 after repaying $502.50).
If the home was sold at a profit before the 15-year payback period ended, the unpaid balance would be deducted from the profit before the proceeds were paid to the seller. If the home was sold at a loss, the balance of the payback would be forgiven.
If the taxpayer dies before paying back all the credit, the unpaid balance would be forgiven.
IMPORTANT NOTE: This is my interpretation of the basic provisions of the Homebuyer Tax Credit. I have tried to simplify things to give a picture of what is now available but I give no guarantees. There are many complicated provisions I haven’t touched upon. As with most new laws, many details will need to be worked out, defined, and applied. You should check with your tax preparer for further provisions of the law.
And whether it’s worth it for you to apply for the credit will depend on your personal financial situation. If you need money to tide you over these tough economic times, it may be worth your while. Just keep in mind that you do have to pay it back in future years.
For more information:
http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf
You are considered a first-time homebuyer if you have not had any ownership interest in a home in the 3-year period preceding date of purchase.
Closing date of the home must be between April 9, 2008 and June 30, 2009.
The tax credit is 10% of the purchase price up to a maximum credit of $7,500.
A single person with income up to $75,000 qualifies for the full credit. Income between $75,000 and $95,000 qualifies for a prorated portion of the $7,500 credit.
Married couples with income up to $150,000 qualify for the full credit. Income between $150,000 and $170,000 qualifies for a prorated portion of the $7,500 credit.
The credit will be applied against income tax liability. When the tax return is compiled in the usual manner, the credit would be used to lower tax liability dollar for dollar. For example, if total tax liability was $9,000, the credit would reduce the liability to $1,500. This has nothing to do with how much withholding you may have already paid. If your tax liability was $9,000 and you had already paid in $9,000 through withholding, you would receive a check for $7,500.
If total tax liability was $1,000, and you had not paid any withholding, the excess credit of $6,500 would be refunded to the taxpayer.
There are no provisions to get the credit before filing the income tax return in 2009. However, a homebuyer who qualifies for the credit could immediately reduce his withholding at his place of employment (or reduce estimated payments to IRS).
But there is a catch. It’s not “free money.”
The credit has been referred to as an interest-free loan, and with good reason. The credit must actually be repaid at the rate of 6.67% ($502.50) per year for 15 years, beginning with the filing of the 2010 tax return in spring of 2011. No interest will be charged. Let’s say a taxpayer was due a refund of $1,000 on his 2010 return. His refund would be reduced to $497.50 after repaying $502.50).
If the home was sold at a profit before the 15-year payback period ended, the unpaid balance would be deducted from the profit before the proceeds were paid to the seller. If the home was sold at a loss, the balance of the payback would be forgiven.
If the taxpayer dies before paying back all the credit, the unpaid balance would be forgiven.
IMPORTANT NOTE: This is my interpretation of the basic provisions of the Homebuyer Tax Credit. I have tried to simplify things to give a picture of what is now available but I give no guarantees. There are many complicated provisions I haven’t touched upon. As with most new laws, many details will need to be worked out, defined, and applied. You should check with your tax preparer for further provisions of the law.
And whether it’s worth it for you to apply for the credit will depend on your personal financial situation. If you need money to tide you over these tough economic times, it may be worth your while. Just keep in mind that you do have to pay it back in future years.
For more information:
http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf
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