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It seems like there are always some “hot-button” issues that realtors, landlords and others related to housing and real estate must deal with. Radon, asbestos, sexual offenders, and mold come to mind as issues from the recent past. And in some areas of Arkansas we can add meth houses.
Now lead-based paint is back on the front burner all over the country in the form of a new federal law.
Renovation, Repair, and Painting (RRP), is a new federally mandated program to deal with the issue of lead paint in homes, primarily those homes built prior to 1978. The program takes effect April 22, 2010 (that’s this Thursday for those who are paying attention).
It’s important that general contractors, real estate agents, plumbers, remodelers, handy-men, painters, property owners, carpenters, electricians, and all others who work in home repair or maintenance be aware of the rules and the requirements for compliance. Failure to do so can result in a fine of $37,500 per day, per violation! Heavy duty stuff.
The issue is “disturbing” lead-based paint which was commonly used in the past. Homes built after 1978 (when the federal law against the use of lead-based paint went into effect) do not have lead-based paint, and even many homes built after 1950 may not have it, since that’s when some paint makers voluntarily quit making it.
What constitutes disturbing lead-based paint? Sanding it or scraping it off, for example, on an interior wall area more than 6 feet square or an exterior area more than 20 feet square. Also such activities as replacing windows.
The main problem appears to be lead dust which can be ingested or airbourne. The issue is to limit the exposure of humans, especially children, to lead-based paint hazards. Thus buildings potentially inhabited by children in addition to homes and apartments, such as day care centers and schools, are covered by the new law.
The bottom line is that renovations of such buildings must be done by a certified renovator and supervised by someone who has taken an approved training course. There are certain techniques and practices for such renovations, which must be followed. Compliance in many cases will be difficult and in many cases, costly. In some cases, there may not be an issue if a certified inspector finds that there is no lead-based paint in the building or home.
However as of now, there are only 4 approved lead paint contractors on the Arkansas Department of Environmental Quality—ADEQ--list in the whole state of Arkansas. There are lots of contractors approved to deal with asbestos, but not lead-based paint. And none of the approved lead paint contractors is in NW Arkansas.
But there’s lots of information out there, and there are some opportunities. For contractors who remodel older homes, getting approved and licensed may mean a foot in the door and more work before competitora also get approved. For landlords with older buildings which are lead-free, this may become a marketing advantage.
There are also responsibilities for realtors and property management companies. Both would be advised to recommend to their repair personnel that they become certified.
This blog post doesn’t begin to address all of the issues, but does hope to draw the attention of those who may be in the process of purchasing an older home or about to do so to the new law and the issues surrounding it.
There are a number of websites for information--just click on the following links:
State of Arkansas ADEQ list of approved contractors
National Association of Realtors Video FAQs and other information
HUD lead paint disclosure requirements
EPA printable brochure about the new law
EPA requirements and information about the new law
Monday, April 19, 2010
Wednesday, April 14, 2010
NW Arkansas Naturals season starts and Crystal Bridges exhibition opens
The opening game for the NW Arkansas Naturals was last week on April 8 at Arvest Ballpark in Springdale, and then there were games on subsequent nights as well. The first couple of games didn't go too well--in the one on Friday they lost to the San Antonio Missions by a score of 13-1 as almost 5000 fans watched, speechless.
But on Saturday they came back and beat the Missions by a score of 4-3.
Whether the Naturals win or lose is not the important thing. Having a baseball team like the Naturals here in NW Arkansas is wonderful for the region and a sign of positive growth. As our collection of small towns expands and more people move to the area, the idea of a variety of activities for residents to enjoy becomes more important. In the absence of a professional team for football, basketball and other sports, the U of A Razorbacks garner an almost-fanatical following. But the Naturals, now only 3 years old, are also making their place here.
Similarly in other disciplines. Soon the new Crystal Bridges art museum will be opening in Bentonville, but there have already been exhibitions at what is called Crystal Bridges at the Massey. The most recent was a juried exhibit of local photographers which opened April 2. With more than 100 entrants from 12-year-old amateurs to seasoned professionals, Crystal Bridges showed that it too will be a centerpiece of NW Arkansas culture. The photographers were asked to capture the changing landscape in Benton, Carroll, Madison and Washington counties.
Fayetteville and Northwest Arkansas have garnered recognition on many "best places" to live, retire, raise a family, start a business--you name it--and with good reason. Our quality of life is enhanced by places like Crystal Bridges and the Walton Arts Center, not to mention the U of A as artistic and intellectual venues, or even places like Georges on Dickson St. as popular music venues. And the NW Arkansas Naturals complement the Razorbacks as a sports destination for many Northwest Arkansas residents.
NW Arkansas IS a great place to live!
But on Saturday they came back and beat the Missions by a score of 4-3.
Whether the Naturals win or lose is not the important thing. Having a baseball team like the Naturals here in NW Arkansas is wonderful for the region and a sign of positive growth. As our collection of small towns expands and more people move to the area, the idea of a variety of activities for residents to enjoy becomes more important. In the absence of a professional team for football, basketball and other sports, the U of A Razorbacks garner an almost-fanatical following. But the Naturals, now only 3 years old, are also making their place here.
Similarly in other disciplines. Soon the new Crystal Bridges art museum will be opening in Bentonville, but there have already been exhibitions at what is called Crystal Bridges at the Massey. The most recent was a juried exhibit of local photographers which opened April 2. With more than 100 entrants from 12-year-old amateurs to seasoned professionals, Crystal Bridges showed that it too will be a centerpiece of NW Arkansas culture. The photographers were asked to capture the changing landscape in Benton, Carroll, Madison and Washington counties.
Fayetteville and Northwest Arkansas have garnered recognition on many "best places" to live, retire, raise a family, start a business--you name it--and with good reason. Our quality of life is enhanced by places like Crystal Bridges and the Walton Arts Center, not to mention the U of A as artistic and intellectual venues, or even places like Georges on Dickson St. as popular music venues. And the NW Arkansas Naturals complement the Razorbacks as a sports destination for many Northwest Arkansas residents.
NW Arkansas IS a great place to live!
Saturday, April 10, 2010
University of Arkansas Has Huge Impact on NW Arkansas
The University of Arkansas’ flagship campus is located in Fayetteville, right where it’s been since it was founded in 1871. The university offers more than 200 graduate and post-graduate programs and its research, development, and outreach aids local public and private sectors.
None of that is news to most folks but I wonder how many of us ever stop to think about the overall economic impact the university has in NW Arkansas…
$725.4 million for the fiscal year ended June 30, 2009 was the amount concluded by an exhaustive study recently produced for the Office of the Chancellor. The study looked at direct expenditures by the university as well as spending and taxes paid by faculty, staff, students and visitors.
A few examples include payroll of $246 million, direct expenditures to NW Arkansas businesses by the university of $56.9 million, student expenditures of $173.7 plus visitors added an additional $127.5 million to the local economy.
Not only are those numbers huge, they must be extrapolated many times over to take trickle-down factors into consideration. Most of that payroll is spent locally. Homes and vehicles are purchased, state and local taxes paid, children of faculty and staff are enrolled in schools, contributions made to local churches and charities, restaurants, medical professionals, gas stations, clothing stores – the list is endless.
If University of Arkansas were not here, this area would have an entirely different landscape.
Go Hogs!
Read the entire 106-page report:
http://www.uark.edu/rd_vcad/economicImpact/rd_vcad/documents/The_Economic_Impact_of_the_University_of_Arkansas_Final_Version_for_Print.pdf
None of that is news to most folks but I wonder how many of us ever stop to think about the overall economic impact the university has in NW Arkansas…
$725.4 million for the fiscal year ended June 30, 2009 was the amount concluded by an exhaustive study recently produced for the Office of the Chancellor. The study looked at direct expenditures by the university as well as spending and taxes paid by faculty, staff, students and visitors.
A few examples include payroll of $246 million, direct expenditures to NW Arkansas businesses by the university of $56.9 million, student expenditures of $173.7 plus visitors added an additional $127.5 million to the local economy.
Not only are those numbers huge, they must be extrapolated many times over to take trickle-down factors into consideration. Most of that payroll is spent locally. Homes and vehicles are purchased, state and local taxes paid, children of faculty and staff are enrolled in schools, contributions made to local churches and charities, restaurants, medical professionals, gas stations, clothing stores – the list is endless.
If University of Arkansas were not here, this area would have an entirely different landscape.
Go Hogs!
Read the entire 106-page report:
http://www.uark.edu/rd_vcad/economicImpact/rd_vcad/documents/The_Economic_Impact_of_the_University_of_Arkansas_Final_Version_for_Print.pdf
Sunday, March 21, 2010
Crystal Ball Look into the NW Arkansas Housing Market
Predicting what's going to happen in the NW Arkansas housing market is somewhat difficult. People always ask me if the market has hit bottom yet, but I can't really tell them, since generally speaking, prices are still declining.
For those who want to get the "best" deal, there are several factors consider:
1. If you are waiting for the market to hit bottom in NW Arkansas, I think it's close, but not necessarily there yet. It also varies by town.
2. Interest rates are still very low, but predictions are that they will rise this year. What this means is that if a house is cheaper a few months from now, but the interest rates are higher, the monthly payment may still be the same. If home prices begin to rise, and interest rates rise as well, buyers may not be able to purchase as nice a home for the amount they have qualified for. Thus, buyers who are serious about purchasing a home may want to do so sooner rather than later if they find a home they really like.
3. The first time home buyers tax credit of up to $8000 was extended at the end of last year, but to get it, buyers must have an accepted offer by April 30 and close by June 30. Buyers who already have a home and want to purchase another as their principal residence may get a tax credit of up to $6500. They must have lived in their current home for at least 5 of the past 8 years. Check the IRS website to get specific information about these programs.
4. Real estate purchases are normally considered to be long-term investments. During the recent housing bubble, investors and other speculators treated them as short-term investments because they could--prices were appreciating by double digit percentages. Now that is not the case, market adjustments have occurred or are occuring, and buyers need to plan to hold on to their real estate purchases for a longer time before selling.
Which brings me to an interesting article from CNN Money about
homes prices in NW Arkansas and whether it's a good time to purchase a home here.
According to their data, the market in NW Arkansas will hit bottom in the 3rd quarter of 2011 (i.e. next year). Also that there will be a 3.1% decline in prices from the first quarter of this year to the first quarter of 2011. A couple of observations about this data:
1. It refers to all of NW Arkansas, or the Fayetteville-Springdale-Rogers Metropolitan Statistical Area, which also includes part of SW Missouri and Madison County, in addition to Washington and Benton Counties.
2. I'm not sure where Moody's gets their data from, but according to sales in the NW Arkansas MLS (Multiple Listing Service), the peak was different in Washington and Benton Counties, and also differed by town. According to my data from the NW Arkansas MLS, Washington County median home prices peaked in the 3rd-4th quarter of 2006 whereas Benton County's peaked in early 2007. I suppose that if they got their data from county records and/or other sources which also includes homes not listed by a realtor, the aggregate could have been the third quarter of 2006.
Who knows when the bottom will occur? In any case, we won't know it happened until after the fact and we can look at the data. And then it will be too late--prices will already have begun to rise, and who knows about interest rates?
For more current data and an ongoing look at the housing market in NW Arkansas and nationally check out Judy Luna's daily "real estate tidbits" on her Facebook business page.
For those who want to get the "best" deal, there are several factors consider:
1. If you are waiting for the market to hit bottom in NW Arkansas, I think it's close, but not necessarily there yet. It also varies by town.
2. Interest rates are still very low, but predictions are that they will rise this year. What this means is that if a house is cheaper a few months from now, but the interest rates are higher, the monthly payment may still be the same. If home prices begin to rise, and interest rates rise as well, buyers may not be able to purchase as nice a home for the amount they have qualified for. Thus, buyers who are serious about purchasing a home may want to do so sooner rather than later if they find a home they really like.
3. The first time home buyers tax credit of up to $8000 was extended at the end of last year, but to get it, buyers must have an accepted offer by April 30 and close by June 30. Buyers who already have a home and want to purchase another as their principal residence may get a tax credit of up to $6500. They must have lived in their current home for at least 5 of the past 8 years. Check the IRS website to get specific information about these programs.
4. Real estate purchases are normally considered to be long-term investments. During the recent housing bubble, investors and other speculators treated them as short-term investments because they could--prices were appreciating by double digit percentages. Now that is not the case, market adjustments have occurred or are occuring, and buyers need to plan to hold on to their real estate purchases for a longer time before selling.
Which brings me to an interesting article from CNN Money about
homes prices in NW Arkansas and whether it's a good time to purchase a home here.
According to their data, the market in NW Arkansas will hit bottom in the 3rd quarter of 2011 (i.e. next year). Also that there will be a 3.1% decline in prices from the first quarter of this year to the first quarter of 2011. A couple of observations about this data:
1. It refers to all of NW Arkansas, or the Fayetteville-Springdale-Rogers Metropolitan Statistical Area, which also includes part of SW Missouri and Madison County, in addition to Washington and Benton Counties.
2. I'm not sure where Moody's gets their data from, but according to sales in the NW Arkansas MLS (Multiple Listing Service), the peak was different in Washington and Benton Counties, and also differed by town. According to my data from the NW Arkansas MLS, Washington County median home prices peaked in the 3rd-4th quarter of 2006 whereas Benton County's peaked in early 2007. I suppose that if they got their data from county records and/or other sources which also includes homes not listed by a realtor, the aggregate could have been the third quarter of 2006.
Who knows when the bottom will occur? In any case, we won't know it happened until after the fact and we can look at the data. And then it will be too late--prices will already have begun to rise, and who knows about interest rates?
For more current data and an ongoing look at the housing market in NW Arkansas and nationally check out Judy Luna's daily "real estate tidbits" on her Facebook business page.
Sunday, March 14, 2010
NW Arkansas Housing Market--4th Quarter Skyline Report
In the last few weeks the 4th quarter Skyline report was released by the Center for Business and Economic Research at the U of A. At the quarterly Washington County breakfast sponsored by Arvest (also sponsor of the report), Kathy Deck, director of the Center and chief researcher for the Skyline report, talked about the economy as well as the housing market.
The economy—particularly employment—strongly influences the housing market for Northwest Arkansas. If there are no jobs then people will not move to the area. If we don’t have more people moving to the area, there will be no need to construct new homes, establish new businesses (to fill up the vacant commercial and office space we have), improve rental vacancy rates, etc. And if people don’t need homes, the real estate market suffers. It’s that simple.
Nationally it seems that the economy is picking up slightly, and NW Arkansas figures are somewhat better than the national ones. The GDP is up—which means that production is up. Inventories have been depleted so factories are producing more. Some folks who were laid off have been called back to work, a good sign. On the other hand, employers don’t feel confident enough to hire a lot of new people either. Thus in NW Arkansas employment figures are now at about 2006 levels, while nationally they’re at about 2000 levels.
Bottom line is that although there is some positive growth again, it will not be the “go-go” growth of the bubble years. What is needed is good, sustainable growth. According to Deck, “flat is the new up,” when compared to declines during the recent recession.
In the realm of commercial space in Q4 in NW Arkansas, there was near record available space in all sectors. This is one area where NW Arkansas figures are worse than the national figures. For example, office and retail space in all of the NW Arkansas communities is a lot above the national average, although it varies by town. Thus leasing costs have gone down and there are anecdotal reports of greater demands by tenants—leasing incentives such as greater build-out allowances, free rent, and delays in scheduled lease rate increases, for example.
For multifamily, vacancy rates are also above national levels. The national vacancy rate is 8.5% for 1-2 bedroom apartments. NW Arkansas rates approached 15% in Q4, primarily because of a lot of new apartments which were constructed, especially in Fayetteville. Expected population growth didn’t materialize, so the number of vacant units remains high. Springdale is lower, but still over 10%.
In the single family arena, building permits are now very low but the market can sustain this level. The value of permits issued has risen, since many of the residential building permits are for custom homes in Fayetteville and Springdale. In the smaller towns of Washington County most of the new permits issued have been for small, affordable homes.
The inventory is down and the problem of absorption is no longer due to overbuilding, but rather a slow down of demand (i.e. fewer people are to the area). According to Deck, the market can support a low level of construction, in fact we need to have some construction occur. As available units are absorbed, there needs to be replacement or prices will rise significantly as demand outpaces supply.
Prices on single family homes have continued to decline, so that values are now at approximately 2004 levels. In Benton County, the decline was 7.7% compared to the same period last year, and in Washington County there was nearly a 14% decline. There may be continued adjustment due to downward pressure caused by foreclosures and sales of distressed properties as well as by the decreased absorption rate.
Ultimately, low interest rates, lower prices, and the first time home buyer tax credit make this a wonderful time to purchase a home in NW Arkansas. Not a great time for selling, however. The thing buyers need to remember is that purchasing a home is normally considered to be a long-term investment, so that even if prices continue to decline, they will eventually begin to appreciate again.
Predictions are that interest rates will begin to rise, and (with low rates of construction of new homes) absorption of current inventory will also cause prices to begin to rise again.
For more information about real estate in NW Arkansas visit Judy Luna’s main website:
http://www.JudyLuna.com
To search for homes or other property in the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com
For more information about the Q4 Skyline report:
http://www.arkansasbusiness.com/article.aspx?aID=120778.54928.132923
http://www.arkansasbusiness.com/article.aspx?aID=120604.54928.132745
The economy—particularly employment—strongly influences the housing market for Northwest Arkansas. If there are no jobs then people will not move to the area. If we don’t have more people moving to the area, there will be no need to construct new homes, establish new businesses (to fill up the vacant commercial and office space we have), improve rental vacancy rates, etc. And if people don’t need homes, the real estate market suffers. It’s that simple.
Nationally it seems that the economy is picking up slightly, and NW Arkansas figures are somewhat better than the national ones. The GDP is up—which means that production is up. Inventories have been depleted so factories are producing more. Some folks who were laid off have been called back to work, a good sign. On the other hand, employers don’t feel confident enough to hire a lot of new people either. Thus in NW Arkansas employment figures are now at about 2006 levels, while nationally they’re at about 2000 levels.
Bottom line is that although there is some positive growth again, it will not be the “go-go” growth of the bubble years. What is needed is good, sustainable growth. According to Deck, “flat is the new up,” when compared to declines during the recent recession.
In the realm of commercial space in Q4 in NW Arkansas, there was near record available space in all sectors. This is one area where NW Arkansas figures are worse than the national figures. For example, office and retail space in all of the NW Arkansas communities is a lot above the national average, although it varies by town. Thus leasing costs have gone down and there are anecdotal reports of greater demands by tenants—leasing incentives such as greater build-out allowances, free rent, and delays in scheduled lease rate increases, for example.
For multifamily, vacancy rates are also above national levels. The national vacancy rate is 8.5% for 1-2 bedroom apartments. NW Arkansas rates approached 15% in Q4, primarily because of a lot of new apartments which were constructed, especially in Fayetteville. Expected population growth didn’t materialize, so the number of vacant units remains high. Springdale is lower, but still over 10%.
In the single family arena, building permits are now very low but the market can sustain this level. The value of permits issued has risen, since many of the residential building permits are for custom homes in Fayetteville and Springdale. In the smaller towns of Washington County most of the new permits issued have been for small, affordable homes.
The inventory is down and the problem of absorption is no longer due to overbuilding, but rather a slow down of demand (i.e. fewer people are to the area). According to Deck, the market can support a low level of construction, in fact we need to have some construction occur. As available units are absorbed, there needs to be replacement or prices will rise significantly as demand outpaces supply.
Prices on single family homes have continued to decline, so that values are now at approximately 2004 levels. In Benton County, the decline was 7.7% compared to the same period last year, and in Washington County there was nearly a 14% decline. There may be continued adjustment due to downward pressure caused by foreclosures and sales of distressed properties as well as by the decreased absorption rate.
Ultimately, low interest rates, lower prices, and the first time home buyer tax credit make this a wonderful time to purchase a home in NW Arkansas. Not a great time for selling, however. The thing buyers need to remember is that purchasing a home is normally considered to be a long-term investment, so that even if prices continue to decline, they will eventually begin to appreciate again.
Predictions are that interest rates will begin to rise, and (with low rates of construction of new homes) absorption of current inventory will also cause prices to begin to rise again.
For more information about real estate in NW Arkansas visit Judy Luna’s main website:
http://www.JudyLuna.com
To search for homes or other property in the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com
For more information about the Q4 Skyline report:
http://www.arkansasbusiness.com/article.aspx?aID=120778.54928.132923
http://www.arkansasbusiness.com/article.aspx?aID=120604.54928.132745
Monday, March 08, 2010
2010 Census Coming Soon to Your Mailbox
National Census Day is April 1, 2010. Use that date as your reference point for completing the census forms which will be arriving in mailboxes all over the country in March.
The Census Bureau says this census will be one of the shortest in history - just ten simple questions. Most Americans grew up knowing the national census takes places every ten years. But for newcomers, the census can cause questions, uncertainty, and apprehension.
There is nothing to fear about the census. There are no questions regarding whether you are living in this country legally or illegally, Social Security numbers are not collected, and your privacy is secure.
The data are grouped together and used in a variety of important ways (for example):
--Congressional districts will be redrawn and reapportioned.
--$400 billion is distributed annually to state and local governments for infrastructure and community services (think bridges, hospitals, senior citizen centers, and job training, for example).
--Pools of skilled workers can be located.
Completing the census is mandated by the U.S. Constitution and it makes good sense for the welfare of our community.
All you have to do is take about ten minutes to complete ten questions and mail it back in its postage-paid envelope. If you don’t do that promptly, a census worker will have to drive to your home, knock on your door and ask the questions - and that costs considerably more than the postage-paid envelope. So give yourself a break and save the government some money at the same time.
For more information:
http://2010.census.gov/2010census/why/community-benefits.php
To see the actual questions:
http://2010.census.gov/2010census/how/interactive-form.php
And to get a part time job as a census taker:
http://ar.thebeehive.org/jobs/job-articles/2010-census-jobs
The Census Bureau says this census will be one of the shortest in history - just ten simple questions. Most Americans grew up knowing the national census takes places every ten years. But for newcomers, the census can cause questions, uncertainty, and apprehension.
There is nothing to fear about the census. There are no questions regarding whether you are living in this country legally or illegally, Social Security numbers are not collected, and your privacy is secure.
The data are grouped together and used in a variety of important ways (for example):
--Congressional districts will be redrawn and reapportioned.
--$400 billion is distributed annually to state and local governments for infrastructure and community services (think bridges, hospitals, senior citizen centers, and job training, for example).
--Pools of skilled workers can be located.
Completing the census is mandated by the U.S. Constitution and it makes good sense for the welfare of our community.
All you have to do is take about ten minutes to complete ten questions and mail it back in its postage-paid envelope. If you don’t do that promptly, a census worker will have to drive to your home, knock on your door and ask the questions - and that costs considerably more than the postage-paid envelope. So give yourself a break and save the government some money at the same time.
For more information:
http://2010.census.gov/2010census/why/community-benefits.php
To see the actual questions:
http://2010.census.gov/2010census/how/interactive-form.php
And to get a part time job as a census taker:
http://ar.thebeehive.org/jobs/job-articles/2010-census-jobs
Tuesday, February 09, 2010
Real Estate News in NW Arkansas
Now that I’m reading the local newspaper on line again, I can use it to help my readers find information on news and issues of importance for the area.
With regard to real estate there are a few things.
First, an article Saturday in the new NW Arkansas paper provided good information about the housing market in NW Arkansas in relation to property taxes collected and delinquent taxes. It seems that the sum of delinquent taxes declined last year, but that doesn’t necessarily mean that the housing market is improving.
Second, last Friday was the annual Economic Forecast Luncheon at the Hammons Center in Rogers, sponsored by the Center for Business and Economic Research at the U of A Sam Walton School of Business.
We learned about recent occurrences in the world, national and local economy and postulations about what’s coming in the near future. Actually the outlook was more positive than I would have imagined and I hope the crystal balls of the speakers are not cracked or broken. We need some positive economic news to get buyers out into the streets again, purchasing homes.
The economic stimulus measures of the federal government have helped, particularly the first time home buyer tax credit, which was expanded and extended into this year. Now if only the weather would improve… ;-)
The other event which I just found out about at the Metro Board of Realtor Luncheon on Thursday was the imminent merger between two of the large local real estate companies of NW Arkansas, Harris McHaney and Coldwell Banker Faucette Realty. This will make the largest real estate company in the NW Arkansas area.
This comes on the heels of the merger under the Weichert umbrella of the Griffin Company and Weichert Clark Long and Associates in December just before Christmas.
The real estate business in NW Arkansas is a changin’. Small boutique firms (and even larger firms like Griffin and Harris McHaney) are having a tougher time. The housing market has suffered with the recession, and may continue to do so. The recent announcement by Walmart of laying off 300 people here in NW Arkansas may have a chilling effect on the economy and housing market just as Walmart’s layoff of 800 people last year did.
Foreclosures are high and there are a lot of short sales. With some of our major corporate employers also cutting back, growth in the area is bound to be curtailed, compared to the peak a few years ago. This (in turn) will lead to fewer new homes being built and sold at a time when we are still trying to absorb the inflated inventory of homes from our mini housing bubble.
I certainly don’t have a crystal ball, but I’m still optimistic.
For more info on the housing market and property taxes:
http://www.nwaonline.com/news/2010/feb/06/unpaid-real-estate-taxes-dip-20100206/
For more info on the Economic Forecast Luncheon and the economy:
http://www.nwaonline.com/news/2010/feb/06/green-jobs-sustainability-could-boost-area-economy/
http://tinyurl.com/ygyzk98
http://tinyurl.com/yzqehch
For more info on the merger of Coldwell Banker and Harris McHaney:
http://www.arkansasbusiness.com/article.aspx?aID=120146.54928.132287
For more info about Fayetteville and NW Arkansas and purchasing or selling a home there:
http://www.JudyLuna.com
And for searching the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com
With regard to real estate there are a few things.
First, an article Saturday in the new NW Arkansas paper provided good information about the housing market in NW Arkansas in relation to property taxes collected and delinquent taxes. It seems that the sum of delinquent taxes declined last year, but that doesn’t necessarily mean that the housing market is improving.
Second, last Friday was the annual Economic Forecast Luncheon at the Hammons Center in Rogers, sponsored by the Center for Business and Economic Research at the U of A Sam Walton School of Business.
We learned about recent occurrences in the world, national and local economy and postulations about what’s coming in the near future. Actually the outlook was more positive than I would have imagined and I hope the crystal balls of the speakers are not cracked or broken. We need some positive economic news to get buyers out into the streets again, purchasing homes.
The economic stimulus measures of the federal government have helped, particularly the first time home buyer tax credit, which was expanded and extended into this year. Now if only the weather would improve… ;-)
The other event which I just found out about at the Metro Board of Realtor Luncheon on Thursday was the imminent merger between two of the large local real estate companies of NW Arkansas, Harris McHaney and Coldwell Banker Faucette Realty. This will make the largest real estate company in the NW Arkansas area.
This comes on the heels of the merger under the Weichert umbrella of the Griffin Company and Weichert Clark Long and Associates in December just before Christmas.
The real estate business in NW Arkansas is a changin’. Small boutique firms (and even larger firms like Griffin and Harris McHaney) are having a tougher time. The housing market has suffered with the recession, and may continue to do so. The recent announcement by Walmart of laying off 300 people here in NW Arkansas may have a chilling effect on the economy and housing market just as Walmart’s layoff of 800 people last year did.
Foreclosures are high and there are a lot of short sales. With some of our major corporate employers also cutting back, growth in the area is bound to be curtailed, compared to the peak a few years ago. This (in turn) will lead to fewer new homes being built and sold at a time when we are still trying to absorb the inflated inventory of homes from our mini housing bubble.
I certainly don’t have a crystal ball, but I’m still optimistic.
For more info on the housing market and property taxes:
http://www.nwaonline.com/news/2010/feb/06/unpaid-real-estate-taxes-dip-20100206/
For more info on the Economic Forecast Luncheon and the economy:
http://www.nwaonline.com/news/2010/feb/06/green-jobs-sustainability-could-boost-area-economy/
http://tinyurl.com/ygyzk98
http://tinyurl.com/yzqehch
For more info on the merger of Coldwell Banker and Harris McHaney:
http://www.arkansasbusiness.com/article.aspx?aID=120146.54928.132287
For more info about Fayetteville and NW Arkansas and purchasing or selling a home there:
http://www.JudyLuna.com
And for searching the NW Arkansas MLS:
http://www.NWArkansasHomeSearch.com
Saturday, February 06, 2010
Newsworthy in NW Arkansas
Well, I bit the bullet and signed up to pay $5.95 per month to read the local newspaper on line. I don’t get the paper version any more and haven’t for a long time. But a few months ago, the two NW Arkansas newspapers merged and now one has to pay money to read local news on line.
As anyone who has been reading my blog for awhile knows, I have used the local newspapers for “more info” on topics that I blog about. I’m sorry you now have to pay too, but that’s the way it is. I resisted for a long time because of principle. If I can read the major newspapers in the country (Washington Post and NY Times) for free, I didn’t want to have to pay for a mere local newspaper.
Neither of the old papers were that great, but they did tell us what was happening in our neighborhoods, local towns and cities. And the new paper does that too. And we need that information to be informed citizens.
The main turning point for me was that in order to read certain articles to find out news important to my business, I have to pay. Another was a comment by Kathy Deck at the Economic Forecast Luncheon on Friday on the importance of supporting our news organizations financially.
And that got me thinking about the importance of the media in a democracy like ours. Without a strong independent media, we have an uninformed electorate. But for democracy to flourish, we need a strong media which can elucidate the issues and (in an unbiased manner) provide information about our candidates, issues of importance to our daily lives, and the functioning of our political system.
Our local newspapers, like newspapers across the country, have been suffering of late because of increased use of the internet to obtain information. Television competes as well. Major newspapers such as those mentioned earlier have deeper pockets and can find alternative ways to survive without charging website visitors to read their stories. Unfortunately our local papers need additional financial help.
Thus I registered and provided my credit card number to be able to read the local newspaper. It’s a sorry sign of the times, but there it is.
The new NW Arkansas newspaper website is http://www.nwaonline.com . The old website for Judy Luna's information about real estate in NW Arkansas is http://www.judyluna.com/.
As anyone who has been reading my blog for awhile knows, I have used the local newspapers for “more info” on topics that I blog about. I’m sorry you now have to pay too, but that’s the way it is. I resisted for a long time because of principle. If I can read the major newspapers in the country (Washington Post and NY Times) for free, I didn’t want to have to pay for a mere local newspaper.
Neither of the old papers were that great, but they did tell us what was happening in our neighborhoods, local towns and cities. And the new paper does that too. And we need that information to be informed citizens.
The main turning point for me was that in order to read certain articles to find out news important to my business, I have to pay. Another was a comment by Kathy Deck at the Economic Forecast Luncheon on Friday on the importance of supporting our news organizations financially.
And that got me thinking about the importance of the media in a democracy like ours. Without a strong independent media, we have an uninformed electorate. But for democracy to flourish, we need a strong media which can elucidate the issues and (in an unbiased manner) provide information about our candidates, issues of importance to our daily lives, and the functioning of our political system.
Our local newspapers, like newspapers across the country, have been suffering of late because of increased use of the internet to obtain information. Television competes as well. Major newspapers such as those mentioned earlier have deeper pockets and can find alternative ways to survive without charging website visitors to read their stories. Unfortunately our local papers need additional financial help.
Thus I registered and provided my credit card number to be able to read the local newspaper. It’s a sorry sign of the times, but there it is.
The new NW Arkansas newspaper website is http://www.nwaonline.com . The old website for Judy Luna's information about real estate in NW Arkansas is http://www.judyluna.com/.
Tuesday, January 26, 2010
Fayetteville HS options
I have been somewhat remiss on reporting on some of the issues that I used to write about. One reason is that the two NW Arkansas newspapers merged and now one must pay to read the newspaper on line. I personally think this is a bad idea and even if I would pay to read the newspaper, I don't want readers of my blog to have to pay to get more information than what I am providing in my blog.
Thus some local issues have fallen by the wayside in my blog and the Fayetteville HS is one of them. However, the Fayetteville Flyer is a great source as well and has a good article on what's happening.
It seems that money is limited for the Fayetteville HS renovation so there are 2 options as to what gets done first. Click on the link below for more information.
http://bit.ly/91jOvy
Thus some local issues have fallen by the wayside in my blog and the Fayetteville HS is one of them. However, the Fayetteville Flyer is a great source as well and has a good article on what's happening.
It seems that money is limited for the Fayetteville HS renovation so there are 2 options as to what gets done first. Click on the link below for more information.
http://bit.ly/91jOvy
Friday, January 22, 2010
Does Your Mortgage Guy (or Lady) Know What He’s Doing?
I was reading the NY Times recently and came across an interesting article. It has to do with the professionalism and knowledge of mortgage loan originators. As you might imagine, this affects my business so it piqued my attention. The ability of a loan originator to get transactions closed cuts down on headaches and frustration for buyers--and their realtors.
It seems that something called the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) was passed by Congress in July 2008 and required states to pass legislation requiring the licensure of mortgage loan originators. The SAFE Act mandated that state agencies participate in the Nationwide Mortgage Licensing System and Registry (NMLS) and that mortgage brokers meet national standards in order to obtain a license.
Testing began in summer 2009. Now that results are starting to trickle in it appears a substantial of mortgage brokers have a lot more work to do to meet standards. Some 10,000 people have taken the tests and more than 30% failed the federal portion. The number of failures on the applicable state portions was slightly less – 27%. All in all, that’s a pretty sad state of affairs.
I would like to think Arkansas’ brokers are a cut above those dismal test results. At least our area did not suffer the horrendous housing collapse that occurred in many states where many unqualified borrowers were given loans they had little ability to repay.
Nineteen states have offered the tests to date, including Arkansas where tests began November 1, 2009. So far I haven’t been able to find results specific to Arkansas.
When a buyer asks me for recommendations about the best place to obtain a mortgage, I usually refer them to few trusted people at local companies who have done a good job in the past for my clients. I don’t necessarily trust some of the on-line lenders that advertise frequently on TV. Sometimes you get a good loan originator, sometimes not.
The other thing to look for is whether you are dealing with a mortgage broker or a bank. A bank will process the loan according to its guidelines. Sometimes they keep the loan and sometimes they will sell it to another lending institution. A mortgage broker has a lot of “investors” (usually banks) to whom they will sell the loan. Some have better relationships with their investors than others and are better able to exert pressure to get problems solved and the transaction closed. Banks who regularly sell their loans also need to have such relationships, but even the experience (or lack thereof) of loan originators within their own institutions can sometimes make or break a transaction.
A proven track record speaks volumes. A good, experienced, and knowledgeable loan originator is important, and the same is true for the realtor you select.
For more information:
http://mortgage.nationwidelicensingsystem.org/safe/Pages/default.aspx
http://www.nrmlaonline.org/App_Assets/public/ef8c2414-00da-4cff-8c69-e45d2ca45a82/SAFE%20Act%20Update.pdf
http://www.nytimes.com/2009/12/27/realestate/27mort.html?
http://www.securities.arkansas.gov/page/338/mortgage-loan
It seems that something called the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) was passed by Congress in July 2008 and required states to pass legislation requiring the licensure of mortgage loan originators. The SAFE Act mandated that state agencies participate in the Nationwide Mortgage Licensing System and Registry (NMLS) and that mortgage brokers meet national standards in order to obtain a license.
Testing began in summer 2009. Now that results are starting to trickle in it appears a substantial of mortgage brokers have a lot more work to do to meet standards. Some 10,000 people have taken the tests and more than 30% failed the federal portion. The number of failures on the applicable state portions was slightly less – 27%. All in all, that’s a pretty sad state of affairs.
I would like to think Arkansas’ brokers are a cut above those dismal test results. At least our area did not suffer the horrendous housing collapse that occurred in many states where many unqualified borrowers were given loans they had little ability to repay.
Nineteen states have offered the tests to date, including Arkansas where tests began November 1, 2009. So far I haven’t been able to find results specific to Arkansas.
When a buyer asks me for recommendations about the best place to obtain a mortgage, I usually refer them to few trusted people at local companies who have done a good job in the past for my clients. I don’t necessarily trust some of the on-line lenders that advertise frequently on TV. Sometimes you get a good loan originator, sometimes not.
The other thing to look for is whether you are dealing with a mortgage broker or a bank. A bank will process the loan according to its guidelines. Sometimes they keep the loan and sometimes they will sell it to another lending institution. A mortgage broker has a lot of “investors” (usually banks) to whom they will sell the loan. Some have better relationships with their investors than others and are better able to exert pressure to get problems solved and the transaction closed. Banks who regularly sell their loans also need to have such relationships, but even the experience (or lack thereof) of loan originators within their own institutions can sometimes make or break a transaction.
A proven track record speaks volumes. A good, experienced, and knowledgeable loan originator is important, and the same is true for the realtor you select.
For more information:
http://mortgage.nationwidelicensingsystem.org/safe/Pages/default.aspx
http://www.nrmlaonline.org/App_Assets/public/ef8c2414-00da-4cff-8c69-e45d2ca45a82/SAFE%20Act%20Update.pdf
http://www.nytimes.com/2009/12/27/realestate/27mort.html?
http://www.securities.arkansas.gov/page/338/mortgage-loan
Friday, January 08, 2010
Bitter Cold Strikes NW Arkansas
I’m writing this Friday at lunchtime. The outside temperature is 7 degrees F. The wind chill is approaching 15 degrees below zero. There are light snowflakes hitting the ground and it is all highly unusual for NW Arkansas.
Our region had snow Sunday followed by cold, which created hazardous driving conditions. Then it got colder. In fact, it’s been brutally cold since late Wednesday night and the forecast calls for more of the same. On Sunday, if all goes as expected, the daytime temperature should warm up to 34 degrees F. and then get a little warmer each day next week.
I realize NW Arkansas is not alone in the cold. Much of the northern and eastern parts of the country are at least as cold and some are even colder. Right now northern Minnesota where I grew up is slightly warmer than Fayetteville, Arkansas. (The kind of cold that northern Minnesota experiences every winter is a major reason why I no longer live there.)
It has been more than 20 years since NW Arkansas had a deep freeze like this one (and I hope it will be another 20 years before it happens again.)
Unusual cold is more dangerous in places where homes and buildings were not designed to handle it. Buildings in places like Minneapolis, Detroit, New York state, and northern New England have more insulation and larger furnaces for heat. Northern states also have more equipment to remove snow and sand roads. Residents in those climates normally have more warm clothes.
This time of year NW Arkansas would expect temps in the 30s and 40s. A cold night might be 20 degrees.
The result of the Arctic air is many faceted. It’s been too dangerous for school buses to navigate icy rural roads, thus schools are closed. In fact, many schools have not reopened since the holiday break. People are cold, pipes are freezing, and cars won’t start. Some older homes don’t even have central heating. It takes a lot of wood to try to heat a home that isn’t properly insulated.
There is good news, however. Several agencies in NW Arkansas have opened warming centers where people can go to avoid frostbite and worse. Many are offering hot food and some have cots for sleeping. At least one agency I heard of is allowing people to bring their pets – because many folks simply will not leave their pet behind to freeze.
So stay inside if at all possible – this too shall pass. I can't wait...
Our region had snow Sunday followed by cold, which created hazardous driving conditions. Then it got colder. In fact, it’s been brutally cold since late Wednesday night and the forecast calls for more of the same. On Sunday, if all goes as expected, the daytime temperature should warm up to 34 degrees F. and then get a little warmer each day next week.
I realize NW Arkansas is not alone in the cold. Much of the northern and eastern parts of the country are at least as cold and some are even colder. Right now northern Minnesota where I grew up is slightly warmer than Fayetteville, Arkansas. (The kind of cold that northern Minnesota experiences every winter is a major reason why I no longer live there.)
It has been more than 20 years since NW Arkansas had a deep freeze like this one (and I hope it will be another 20 years before it happens again.)
Unusual cold is more dangerous in places where homes and buildings were not designed to handle it. Buildings in places like Minneapolis, Detroit, New York state, and northern New England have more insulation and larger furnaces for heat. Northern states also have more equipment to remove snow and sand roads. Residents in those climates normally have more warm clothes.
This time of year NW Arkansas would expect temps in the 30s and 40s. A cold night might be 20 degrees.
The result of the Arctic air is many faceted. It’s been too dangerous for school buses to navigate icy rural roads, thus schools are closed. In fact, many schools have not reopened since the holiday break. People are cold, pipes are freezing, and cars won’t start. Some older homes don’t even have central heating. It takes a lot of wood to try to heat a home that isn’t properly insulated.
There is good news, however. Several agencies in NW Arkansas have opened warming centers where people can go to avoid frostbite and worse. Many are offering hot food and some have cots for sleeping. At least one agency I heard of is allowing people to bring their pets – because many folks simply will not leave their pet behind to freeze.
So stay inside if at all possible – this too shall pass. I can't wait...
Wednesday, December 30, 2009
Happy New Year
It's a good thing 2009 is almost over. Not a good year for a lot of people. Hopefully 2010 will bring recovery to the recession and more prosperity to all. And for all sellers out there, I hope your house sells wherever you are, so you can move to NW Arkansas and purchase a home here. ;-) Happy New Year.
Consumer Confidence Up in NW Arkansas? I hope so.
When I was out shopping before Christmas I encountered horrendous traffic near the malls and lots of people in the stores. My impression was that “consumer confidence” in NW Arkansas was back in force.
Now that some of the business reports are coming in, the numbers show my impression was correct. Basically my observations of are “anecdotal” evidence but I also pull data from local sources and the MLS. So when the economists trot out the statistics I look for those to validate my gut feelings and in this case they did just that.
As I have mentioned in the past, Americans are saving more than they did before the recession and that’s a good thing. But for a healthy economy, people need to spend money. Individuals don’t often realize the impact their personal spending habits have on the economy as a whole. But the truth is that consumer spending is a huge driving force on the economy and people need to spend money if the recovery is to gain momentum.
I’m happy that things are picking up at the retail level. It’s a positive sign of economic recovery. My hope is that the housing market responds in kind.
For more information:
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119367.54928.131493&page=2
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119366.54928.131492
Now that some of the business reports are coming in, the numbers show my impression was correct. Basically my observations of are “anecdotal” evidence but I also pull data from local sources and the MLS. So when the economists trot out the statistics I look for those to validate my gut feelings and in this case they did just that.
As I have mentioned in the past, Americans are saving more than they did before the recession and that’s a good thing. But for a healthy economy, people need to spend money. Individuals don’t often realize the impact their personal spending habits have on the economy as a whole. But the truth is that consumer spending is a huge driving force on the economy and people need to spend money if the recovery is to gain momentum.
I’m happy that things are picking up at the retail level. It’s a positive sign of economic recovery. My hope is that the housing market responds in kind.
For more information:
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119367.54928.131493&page=2
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Monday&lID=&sID=&ms=&cID=Z&aID=119366.54928.131492
Tuesday, December 15, 2009
Some Positive News for the NW Arkansas Housing Market
There are a couple of events that I try to attend on a regular basis, because I get validation for my “feelings” about the market gleaned from my own business and from anecdotal evidence from other realtors. It’s “my homework” so I can stay apprised of trends in the market (in addition to the data I pull from the NW Arkansas MLS) and the effects of the economy on our area.
One event is the quarterly Skyline breakfast that Arvest bank sponsors for realtors, developers, builders and others in the housing business in NW Arkansas. Kathy Deck from the Center for Business and Economic Research at the U of A provides information about new home construction, absorption, and the economy of NW Arkansas. Mostly the report for Arvest deals with residential real estate, but normally there are also segments on multifamily housing and commercial real estate as well.
A second similar event is the quarterly Streetsmart breakfast coffee hour sponsored by that organization. Streetsmart is a commercial venture which provides similar data for profit to developers, builders and other real estate investors. They tend to focus more on commercial real estate, but they gather all kinds of data on residential and multifamily as well.
The third is the quarterly economic breakfast sponsored by the Center for Business and Economic Research at the U of A. This provides more general information about the economy with only limited information about the housing market itself. But what’s happening in the local (and national) economy influences housing, so it also becomes important for my personal quest for information.
The 3rd quarter Skyline breakfast was held about 3 weeks ago. Kathy Deck, the director of Center for Business and Economic Research at the University of Arkansas, was cautiously optimistic about the residential housing market, but we’re not out of the woods yet because of national economic trends, which also influence us here.
Third quarter 2009 numbers show signs that demand is beginning to lower the number of new homes available (decreased inventory), but the absorption rate has slowed, not because of over-supply such as occurred at the peak of our housing bubble here a few years ago, but rather because there are fewer people moving into the area.
Kathy always starts her talks with unemployment figures, because job growth is what fuels the demand for housing. As long as there is positive job growth in NW Arkansas people will be drawn here and thus purchase homes. However, the number of people moving here is about 1/3 of what it was at the peak several years ago. Nationally there has been a loss of 8 million jobs in every sector except health services and education. The latter are strong sectors here and the only sectors which have shown positive job creation. There have been some job losses here but not on the scale of the nation as a whole.
Nevertheless, sales of new-but-never-occupied homes increased 30% in the third quarter over the second quarter of 2009. Correspondingly, the available inventory of complete but unoccupied homes fell by 27%. But this is partially because building permits are way down.
The average price of homes continued to decline in the third quarter. The average price per square foot of homes sold in Benton County was $80.26 in the third quarter compared to $97.16 in the third quarter of 2006. In Washington County, the average price fell from $103.63 to $86.28 per square foot.
Other factors in the economy nationally have also affected the housing market in NW Arkansas. These include consumer sentiment--people are saving their money instead of spending it in part because they are being forced to (credit is less available now than it was in the past). Loss of employment have also made people cautious, so they are not buying things. Normally this is a good thing, but if everyone does it (as they are now) then the economy suffers. Retailers are putting fewer products on the shelves, “rationalizing SKUs”, and home builders are not building a lot of new spec homes.
The positive numbers regarding home sales have been spurred by income tax credits of up to $8,000 for first-time homebuyers. These credits were due to expire November 30, 2009 but have now been extended into 2010. And now a new credit is available to current homeowners who wish to buy another home. (For more information on either of these credits, read my blog below, “Homebuyer Tax Credit Extended! Hurray!” posted November 15, 2009.
My suspicion that the multifamily and commercial sectors are suffering was borne out at the Streetsmart Coffee Hour held last week. Tom Reed of Streetsmart spoke and presented some additional economic data which basically supported what Kathy Deck had to say. Hotel/motel tax receipts are down, and those for restaurants are the same as for last year in the 3rd quarter. Job creation has declined—non-farm jobs in NW Arkansas are down by 1.4% or about 3000 jobs. This is better than the state and national figures (2.4% state decline in non-farm jobs and 4% national decline) but compared to past years when we had a job growth surplus, the decline is not good news.
For residential housing, building permits are down—there’s been a 23% decline when comparing Q1-3 of 2009 to Q1-3 of 2008. Also home prices have declined by 8.1% when Q3 of this year is compared to Q3 of last year in Benton County and by 6% in Washington County. However, the amount of decline is less than what it has been in previous quarters, leading one to believe that perhaps prices are leveling off. But the number of home sales is up.
An interesting fact mentioned by Reed was that there were a substantial number of home sales recorded in the county records which were not in the Multiple Listing Service. When asked to account for the large number of homes not listed or sold by a realtor, Reed speculated that these were sales by banks. Essentially the number of new home sales in the first three quarters of 2009 (as recorded in the MLS) was doubled when non-MLS sales recorded in the country records were counted: 287 new home sales reported by the MLS of 526 new home sales in active subdivisions recorded in the county records in Benton County and 170 new home sales reported by the MLS of 340 new home sales in active subdivisions recorded in the county records in Washington County.
According to Reed, the bottom line for residential home sales in the 3rd quarter showed new construction activity slow but building permit totals increased during the year. There will need to be some housing starts or the time will come when there are no new homes available. There was a continued reduction in inventory of complete but not occupied dwellings—the number of these decreased by 23.5% from the 2nd quarter. Interest rates remain low and the home buyer credit appears to be having an effect in increased buyer activity. Lot sales were up significantly in Q3.
For multifamily the situation is that there is an oversupply—in Fayetteville the vacancy rate is almost 18% due to a number of new apartment complexes which have come on line recently. Siloam Springs has a 16% vacancy rate, Springdale 14%, Rogers over 12% and Bentonville approximately 11%. Basically it is too high in all markets in NW Arkansas. Lower end homes for sale are competing with multifamily rentals. This could be an effect of the tax credit for first time buyers.
There is also an oversupply of commercial space. Nationally the vacancy rate for class A and B office space is about 15-16%. In NW Arkansas the vacancy rate is about 19-22% (varies by town). According to Reed, if office space to be absorbed, jobs need to be created. Office space is directly tied to job creation. The situation is similar for retail space. The vacancy rate for class A and B retail space nationally is about 11.5-12%. In NW Arkansas it is about 15-16%. And occupancy rates for hotels here is declining due to many new hotels constructed in the past few years.
Of particular concern in the commercial arena, according to Reed, is the amount of maturing commercial debt. Nationally, of $3.5 trillion of outstanding debt in mid-2009, $1.56 trillion of that debt will be coming due within the next 36 months, when loans will be re-set/refinanced. In past recessions, small businesses have been responsible for growth with a loss of only about 9% of jobs. In this recession there has been a 45% job loss in small businesses. Because of the linkage of small business with local community banks, small businesses will be in trouble if community banks cannot give them loans. Ultimately job creation must improve for absorption of vacant commercial space.
Bottom line from these two reports is that the increase I have noticed in residential activity is not a figment of my imagination. I would suspect that the 4th quarter numbers will show some more positive trends. As I mentioned at the beginning, we’re not out of the recession yet but the picture is not all doom and gloom.
For more information:
http://www.arkansasbusiness.com/article.aspx?zone=AB_ENEWS_EarlyLateBreaking&lID=&sID=&ms=&cID=PM&aID=118766.54928.130892
http://www.nwanews.com/news/2009/nov/24/little-progress-noted-housing-20091124/
One event is the quarterly Skyline breakfast that Arvest bank sponsors for realtors, developers, builders and others in the housing business in NW Arkansas. Kathy Deck from the Center for Business and Economic Research at the U of A provides information about new home construction, absorption, and the economy of NW Arkansas. Mostly the report for Arvest deals with residential real estate, but normally there are also segments on multifamily housing and commercial real estate as well.
A second similar event is the quarterly Streetsmart breakfast coffee hour sponsored by that organization. Streetsmart is a commercial venture which provides similar data for profit to developers, builders and other real estate investors. They tend to focus more on commercial real estate, but they gather all kinds of data on residential and multifamily as well.
The third is the quarterly economic breakfast sponsored by the Center for Business and Economic Research at the U of A. This provides more general information about the economy with only limited information about the housing market itself. But what’s happening in the local (and national) economy influences housing, so it also becomes important for my personal quest for information.
The 3rd quarter Skyline breakfast was held about 3 weeks ago. Kathy Deck, the director of Center for Business and Economic Research at the University of Arkansas, was cautiously optimistic about the residential housing market, but we’re not out of the woods yet because of national economic trends, which also influence us here.
Third quarter 2009 numbers show signs that demand is beginning to lower the number of new homes available (decreased inventory), but the absorption rate has slowed, not because of over-supply such as occurred at the peak of our housing bubble here a few years ago, but rather because there are fewer people moving into the area.
Kathy always starts her talks with unemployment figures, because job growth is what fuels the demand for housing. As long as there is positive job growth in NW Arkansas people will be drawn here and thus purchase homes. However, the number of people moving here is about 1/3 of what it was at the peak several years ago. Nationally there has been a loss of 8 million jobs in every sector except health services and education. The latter are strong sectors here and the only sectors which have shown positive job creation. There have been some job losses here but not on the scale of the nation as a whole.
Nevertheless, sales of new-but-never-occupied homes increased 30% in the third quarter over the second quarter of 2009. Correspondingly, the available inventory of complete but unoccupied homes fell by 27%. But this is partially because building permits are way down.
The average price of homes continued to decline in the third quarter. The average price per square foot of homes sold in Benton County was $80.26 in the third quarter compared to $97.16 in the third quarter of 2006. In Washington County, the average price fell from $103.63 to $86.28 per square foot.
Other factors in the economy nationally have also affected the housing market in NW Arkansas. These include consumer sentiment--people are saving their money instead of spending it in part because they are being forced to (credit is less available now than it was in the past). Loss of employment have also made people cautious, so they are not buying things. Normally this is a good thing, but if everyone does it (as they are now) then the economy suffers. Retailers are putting fewer products on the shelves, “rationalizing SKUs”, and home builders are not building a lot of new spec homes.
The positive numbers regarding home sales have been spurred by income tax credits of up to $8,000 for first-time homebuyers. These credits were due to expire November 30, 2009 but have now been extended into 2010. And now a new credit is available to current homeowners who wish to buy another home. (For more information on either of these credits, read my blog below, “Homebuyer Tax Credit Extended! Hurray!” posted November 15, 2009.
My suspicion that the multifamily and commercial sectors are suffering was borne out at the Streetsmart Coffee Hour held last week. Tom Reed of Streetsmart spoke and presented some additional economic data which basically supported what Kathy Deck had to say. Hotel/motel tax receipts are down, and those for restaurants are the same as for last year in the 3rd quarter. Job creation has declined—non-farm jobs in NW Arkansas are down by 1.4% or about 3000 jobs. This is better than the state and national figures (2.4% state decline in non-farm jobs and 4% national decline) but compared to past years when we had a job growth surplus, the decline is not good news.
For residential housing, building permits are down—there’s been a 23% decline when comparing Q1-3 of 2009 to Q1-3 of 2008. Also home prices have declined by 8.1% when Q3 of this year is compared to Q3 of last year in Benton County and by 6% in Washington County. However, the amount of decline is less than what it has been in previous quarters, leading one to believe that perhaps prices are leveling off. But the number of home sales is up.
An interesting fact mentioned by Reed was that there were a substantial number of home sales recorded in the county records which were not in the Multiple Listing Service. When asked to account for the large number of homes not listed or sold by a realtor, Reed speculated that these were sales by banks. Essentially the number of new home sales in the first three quarters of 2009 (as recorded in the MLS) was doubled when non-MLS sales recorded in the country records were counted: 287 new home sales reported by the MLS of 526 new home sales in active subdivisions recorded in the county records in Benton County and 170 new home sales reported by the MLS of 340 new home sales in active subdivisions recorded in the county records in Washington County.
According to Reed, the bottom line for residential home sales in the 3rd quarter showed new construction activity slow but building permit totals increased during the year. There will need to be some housing starts or the time will come when there are no new homes available. There was a continued reduction in inventory of complete but not occupied dwellings—the number of these decreased by 23.5% from the 2nd quarter. Interest rates remain low and the home buyer credit appears to be having an effect in increased buyer activity. Lot sales were up significantly in Q3.
For multifamily the situation is that there is an oversupply—in Fayetteville the vacancy rate is almost 18% due to a number of new apartment complexes which have come on line recently. Siloam Springs has a 16% vacancy rate, Springdale 14%, Rogers over 12% and Bentonville approximately 11%. Basically it is too high in all markets in NW Arkansas. Lower end homes for sale are competing with multifamily rentals. This could be an effect of the tax credit for first time buyers.
There is also an oversupply of commercial space. Nationally the vacancy rate for class A and B office space is about 15-16%. In NW Arkansas the vacancy rate is about 19-22% (varies by town). According to Reed, if office space to be absorbed, jobs need to be created. Office space is directly tied to job creation. The situation is similar for retail space. The vacancy rate for class A and B retail space nationally is about 11.5-12%. In NW Arkansas it is about 15-16%. And occupancy rates for hotels here is declining due to many new hotels constructed in the past few years.
Of particular concern in the commercial arena, according to Reed, is the amount of maturing commercial debt. Nationally, of $3.5 trillion of outstanding debt in mid-2009, $1.56 trillion of that debt will be coming due within the next 36 months, when loans will be re-set/refinanced. In past recessions, small businesses have been responsible for growth with a loss of only about 9% of jobs. In this recession there has been a 45% job loss in small businesses. Because of the linkage of small business with local community banks, small businesses will be in trouble if community banks cannot give them loans. Ultimately job creation must improve for absorption of vacant commercial space.
Bottom line from these two reports is that the increase I have noticed in residential activity is not a figment of my imagination. I would suspect that the 4th quarter numbers will show some more positive trends. As I mentioned at the beginning, we’re not out of the recession yet but the picture is not all doom and gloom.
For more information:
http://www.arkansasbusiness.com/article.aspx?zone=AB_ENEWS_EarlyLateBreaking&lID=&sID=&ms=&cID=PM&aID=118766.54928.130892
http://www.nwanews.com/news/2009/nov/24/little-progress-noted-housing-20091124/
Sunday, November 22, 2009
Bikes, Blues and Barbecue Announces Charitable Contributions
$45,000 – that’s the amount Bikes, Blues and Barbecue Motorcycle Rally was able to donate to local charities last week. It comes at a time when many worthwhile causes are in great need due to the economic downturn.
The recipients include such well-known names as Big Brothers & Big Sisters, Habitat for Humanity, Humane Society of the Ozarks, Muscular Dystrophy, and the Jones Center for Families. Several more non-profit groups perhaps not as widely known but equally worthwhile include Peace at Home Shelter, Fayetteville Public Education Foundation, Horses for Healing, and CASA of Northwest Arkansas.
Bikes, Blues & Barbecue was not able to make any donations in 2008 because of expenses incurred to enlarge venues and other one-time expenses so it’s wonderful to see the rally back in the black.
Since 2000, BBB has given more than $500,000 to local charities.
Kudos for all you do!
For more information:
http://www.bikesbluesandbbq.org/charities.htm
The recipients include such well-known names as Big Brothers & Big Sisters, Habitat for Humanity, Humane Society of the Ozarks, Muscular Dystrophy, and the Jones Center for Families. Several more non-profit groups perhaps not as widely known but equally worthwhile include Peace at Home Shelter, Fayetteville Public Education Foundation, Horses for Healing, and CASA of Northwest Arkansas.
Bikes, Blues & Barbecue was not able to make any donations in 2008 because of expenses incurred to enlarge venues and other one-time expenses so it’s wonderful to see the rally back in the black.
Since 2000, BBB has given more than $500,000 to local charities.
Kudos for all you do!
For more information:
http://www.bikesbluesandbbq.org/charities.htm
Sunday, November 15, 2009
Homebuyer Tax Credit Extended! Hurray!
Check out this video to get all of the details on the extension of the first time home buyers tax credit.
$8000 Home Buyer Tax Credit
Last Friday, President Obama signed the law to make the extension official, after the Senate gave its approval and the House of Representatives voted overwhelmingly to pass the legislation.
The $8,000 first-time homebuyer tax credit was supposed to expire Nov. 30, 2009, but now it will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.
But not only a time-limit extension was part of the new bill. The tax credit was also extended to include home buyers who already own a home. They can apply for a $6,500 tax credit for the purchase of another home. To be eligible, the existing homeowners must have lived in their current residence for five of the prior eight years and the eligible homes must be worth $800,000 or less. Both credits are available only for primary residences, not second homes or investment properties. The legislation took effect November 7, 2009 and is not retroactive.
The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two years. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
$8000 Home Buyer Tax Credit
Last Friday, President Obama signed the law to make the extension official, after the Senate gave its approval and the House of Representatives voted overwhelmingly to pass the legislation.
The $8,000 first-time homebuyer tax credit was supposed to expire Nov. 30, 2009, but now it will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.
But not only a time-limit extension was part of the new bill. The tax credit was also extended to include home buyers who already own a home. They can apply for a $6,500 tax credit for the purchase of another home. To be eligible, the existing homeowners must have lived in their current residence for five of the prior eight years and the eligible homes must be worth $800,000 or less. Both credits are available only for primary residences, not second homes or investment properties. The legislation took effect November 7, 2009 and is not retroactive.
The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two years. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.
Thursday, October 29, 2009
News about News in Northwest Arkansas
I suppose it was inevitable, but the merger of the two major newspapers in Northwest Arkansas has saddened me. Readers and advertisers alike will no longer have a choice of newspapers. Competition is virtually good – keeps everyone on their toes and helps keep prices down.
The merger includes the Northwest Arkansas Times in Fayetteville, Benton County Daily Record in Bentonville, Morning News in Springdale plus several weekly or twice-weekly newspapers, a Spanish language weekly and a monthly magazine devoted to Arkansas Razorbacks athletics.
Another sad result of the merger is the loss of jobs. More than 500 people are employed either full- or part-time by both newspapers. At this point, no one is sure how many will still have a job when the dust settles.
I’m surprised this is all taking taking place so rapidly – Sunday, November 1. The proposed merger was announced less than two months ago (September 3, 2009). Seems like a huge effort and yet the pieces fell into place as soon as the U.S. Department of Justice concluded the proposed merger would not create any antitrust violations. The Justice Dept. used to feel differently about these things but faced with the reality that newspapers have suffered huge losses across the country, the merger was quickly approved.
All versions of the newspaper will include the Arkansas Democrat-Gazette but depending on locality, readers will also receive either the Northwest Arkansas Times, Benton County Daily Record, or the Morning News. It’s possible the Morning News will publish slightly different versions for Rogers and Springdale.
To access the versions not included in a particular area, readers will either have to drive to a newstand in that area or go online. Newspaper subscribers are permitted free access to websites but others must pay a monthly fee for the privilege.
I must say I’m a little put out about that. While I can sympathize with their plight (i.e., subscriptions and advertising way down), if two of the premier newspapers in the country (New York Times and Washington Post), among others, are still free, I sort of resent having to pay to read the local newspaper.
On the other hand, a lot of realtors no longer advertise in the newspaper (or magazines either), contributing to the problem. Statistics show that about 90% of home buyers now find their home on line. With home sales down and limited advertising dollars, the real estate industry is changing. The same is probably true for other industries. And unfortunately our local papers are paying the price.
C'est la vie.
For more information:
http://arkansasnews.com/2009/09/03/northwest-arkansas-newspapers-seek-joint-venture/
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118172.54928.130298&view=all
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118171.54928.130297
The merger includes the Northwest Arkansas Times in Fayetteville, Benton County Daily Record in Bentonville, Morning News in Springdale plus several weekly or twice-weekly newspapers, a Spanish language weekly and a monthly magazine devoted to Arkansas Razorbacks athletics.
Another sad result of the merger is the loss of jobs. More than 500 people are employed either full- or part-time by both newspapers. At this point, no one is sure how many will still have a job when the dust settles.
I’m surprised this is all taking taking place so rapidly – Sunday, November 1. The proposed merger was announced less than two months ago (September 3, 2009). Seems like a huge effort and yet the pieces fell into place as soon as the U.S. Department of Justice concluded the proposed merger would not create any antitrust violations. The Justice Dept. used to feel differently about these things but faced with the reality that newspapers have suffered huge losses across the country, the merger was quickly approved.
All versions of the newspaper will include the Arkansas Democrat-Gazette but depending on locality, readers will also receive either the Northwest Arkansas Times, Benton County Daily Record, or the Morning News. It’s possible the Morning News will publish slightly different versions for Rogers and Springdale.
To access the versions not included in a particular area, readers will either have to drive to a newstand in that area or go online. Newspaper subscribers are permitted free access to websites but others must pay a monthly fee for the privilege.
I must say I’m a little put out about that. While I can sympathize with their plight (i.e., subscriptions and advertising way down), if two of the premier newspapers in the country (New York Times and Washington Post), among others, are still free, I sort of resent having to pay to read the local newspaper.
On the other hand, a lot of realtors no longer advertise in the newspaper (or magazines either), contributing to the problem. Statistics show that about 90% of home buyers now find their home on line. With home sales down and limited advertising dollars, the real estate industry is changing. The same is probably true for other industries. And unfortunately our local papers are paying the price.
C'est la vie.
For more information:
http://arkansasnews.com/2009/09/03/northwest-arkansas-newspapers-seek-joint-venture/
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118172.54928.130298&view=all
http://www.arkansasbusiness.com/article.aspx?zone=AB_DailyReport_Tuesday&lID=&sID=&ms=&cID=Z&aID=118171.54928.130297
Sunday, October 11, 2009
Good Economic News in NW Arkansas
Some thoughts from the Arkansas Economic Issues Breakfast meeting I attended a few weeks ago on September 30…
First, at little background: This was the first in a semi-annual series bringing together Arkansas’s business, community, education and government leaders via video conferencing. There were people gathered in 7 locations, and speakers at three of them. In Fayetteville, the gathering was held at the Sam Walton School of Business at the U of A. The series is sponsored by Arkansas Business to promote economic development by disseminating high-quality information and analyses.
Governor Mike Beebe in Little Rock kicked off the event with good news: "We've added 22,000 new manufacturing jobs in the last 20 months.” Beebe also said we are on the brink of several non-U.S. companies coming to Arkansas.
The general consensus is that Arkansas has endured the recession considerably better than many states. Unemployment rates here never came close to double digits and the housing market did not suffer the huge declines seen elsewhere.
Kathy Deck, director of the University of Arkansas (Fayetteville) Center for Business and Economic Research, stated the recession is technically over, while at the same time acknowledging that the average consumer may not yet be ready to agree. People are still worried about the future in general and continue to be concerned about possibility of unemployment and the decline in value of homes and 401(k) retirement accounts.
On a scale of 1 to 5, with 1 being much better and 5 being much worse, the Fayetteville area's economic condition was ranked 2, which is better than all other areas in the state.
To summarize, NW Arkansas appears to have come through the recession better than the rest of the state and Arkansas, better than many other states.
However, there is always room for improvement. Highway construction, transportation, education, improving job skills, and business investment and expansion are at the top of everyone’s list. Other concerns include the overbuilt real estate market and health care.
For more information:
http://www.arkansasbusiness.com/printable.asp?aid=117380
First, at little background: This was the first in a semi-annual series bringing together Arkansas’s business, community, education and government leaders via video conferencing. There were people gathered in 7 locations, and speakers at three of them. In Fayetteville, the gathering was held at the Sam Walton School of Business at the U of A. The series is sponsored by Arkansas Business to promote economic development by disseminating high-quality information and analyses.
Governor Mike Beebe in Little Rock kicked off the event with good news: "We've added 22,000 new manufacturing jobs in the last 20 months.” Beebe also said we are on the brink of several non-U.S. companies coming to Arkansas.
The general consensus is that Arkansas has endured the recession considerably better than many states. Unemployment rates here never came close to double digits and the housing market did not suffer the huge declines seen elsewhere.
Kathy Deck, director of the University of Arkansas (Fayetteville) Center for Business and Economic Research, stated the recession is technically over, while at the same time acknowledging that the average consumer may not yet be ready to agree. People are still worried about the future in general and continue to be concerned about possibility of unemployment and the decline in value of homes and 401(k) retirement accounts.
On a scale of 1 to 5, with 1 being much better and 5 being much worse, the Fayetteville area's economic condition was ranked 2, which is better than all other areas in the state.
To summarize, NW Arkansas appears to have come through the recession better than the rest of the state and Arkansas, better than many other states.
However, there is always room for improvement. Highway construction, transportation, education, improving job skills, and business investment and expansion are at the top of everyone’s list. Other concerns include the overbuilt real estate market and health care.
For more information:
http://www.arkansasbusiness.com/printable.asp?aid=117380
Tuesday, October 06, 2009
Deadline to Pay Property Taxes is October 13, 2009
The normal deadline for paying property taxes and personal property taxes is October 10th each year but because the 10th is a Saturday, 11th a Sunday, and Monday the 12th is a Holiday, there is a small reprieve.
Many homeowners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. The bank holds the tax portion of the payment and then pays the property tax when due. If this is your situation, you can relax since your property taxes have already been paid.
But if you don’t have a mortgage or don’t pay taxes as part of your mortgage, be aware October 13th is rapidly approaching.
When the bills were sent out last spring, they included an option to pay taxes in three payments. If you took advantage of that, don’t forget the third and final payment.
Personal property taxes on cars, trucks, boats, etc., are also due October 13th.
Late payments incur an automatic 10% penalty plus interest.
You can pay your taxes in person but in Washington County this year that is rather inconvenient due to very limited parking. The parking garage is being demolished and a new one will be operational next year. In addition to paying in person or mailing a check, both Benton and Washington Counties offer an ePayment Service. You can pay by Visa, MasterCard, Discover or American Express credit card. Washington County also accepts payment via eCheck - a method of debiting the funds electronically from your checking account just as though you had written a check.
However, be advised that if you use any of the methods just mentioned, you will incur a processing fee. The county websites state, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”
The web addresses for paying online are:
https://www.ark.org/washingtoncounty/index.php
https://www.ark.org/bentoncounty/index.php
Many homeowners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. The bank holds the tax portion of the payment and then pays the property tax when due. If this is your situation, you can relax since your property taxes have already been paid.
But if you don’t have a mortgage or don’t pay taxes as part of your mortgage, be aware October 13th is rapidly approaching.
When the bills were sent out last spring, they included an option to pay taxes in three payments. If you took advantage of that, don’t forget the third and final payment.
Personal property taxes on cars, trucks, boats, etc., are also due October 13th.
Late payments incur an automatic 10% penalty plus interest.
You can pay your taxes in person but in Washington County this year that is rather inconvenient due to very limited parking. The parking garage is being demolished and a new one will be operational next year. In addition to paying in person or mailing a check, both Benton and Washington Counties offer an ePayment Service. You can pay by Visa, MasterCard, Discover or American Express credit card. Washington County also accepts payment via eCheck - a method of debiting the funds electronically from your checking account just as though you had written a check.
However, be advised that if you use any of the methods just mentioned, you will incur a processing fee. The county websites state, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”
The web addresses for paying online are:
https://www.ark.org/washingtoncounty/index.php
https://www.ark.org/bentoncounty/index.php
Thursday, October 01, 2009
Bikes, Blues and Barbeque in Fayetteville, AR
What a party! The 10th annual Bikes, Blues and Barbeque Rally was held in Fayetteville September 23-26, 2009. If you weren’t there, you should have been. Hundreds of thousands of people made their way to the festivities for music, food, seeing and being seen, parade of power, poker run, and more.
There were all kinds of bike competitions: plenty of conversions, plenty of chrome, and all shining in the sunshine.
I couldn’t count all the bands and musicians that were on hand to provide music and dancing.
The Barbecue cook off saw 53 teams compete and was won by The Smokin Hills of Overland Park, Kansas.
The Ozark Mountain weather certainly contributed to the success of Bikes, Blues BBQ. We’d had quite an unusual spell of overcast weather leading up to opening day. As soon as the rally started, blue skies broke through and temps stayed in the low 70s. Just absolutely gorgeous weather.
The whole purpose of Bikes, Blues & BBQ is to conduct a safe, fun and family-friendly motorcycle rally and all profits go to local charities. It will take about a month for all expenses to be paid at which time the charitable donations will be announced.
Mark your calendar now for next year’s rally - September 29 – October 2, 2010.
For more information and pictures:
http://www.bikesbluesandbbq.org/
There were all kinds of bike competitions: plenty of conversions, plenty of chrome, and all shining in the sunshine.
I couldn’t count all the bands and musicians that were on hand to provide music and dancing.
The Barbecue cook off saw 53 teams compete and was won by The Smokin Hills of Overland Park, Kansas.
The Ozark Mountain weather certainly contributed to the success of Bikes, Blues BBQ. We’d had quite an unusual spell of overcast weather leading up to opening day. As soon as the rally started, blue skies broke through and temps stayed in the low 70s. Just absolutely gorgeous weather.
The whole purpose of Bikes, Blues & BBQ is to conduct a safe, fun and family-friendly motorcycle rally and all profits go to local charities. It will take about a month for all expenses to be paid at which time the charitable donations will be announced.
Mark your calendar now for next year’s rally - September 29 – October 2, 2010.
For more information and pictures:
http://www.bikesbluesandbbq.org/
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