University of Arkansas Earns Highest Ranking from Carnegie Foundation

Good News! U of A has just announced that the Carnegie Foundation for the Advancement of Teaching has upgraded the university’s status to the highest possible rating for research. Prior to the latest announcement, U of A was ranked in the next-highest classification.

For many years, Carnegie Foundation’s rankings have been broadly recognized as the standard categorization of accredited U.S. universities and colleges. Thus, this ranking further enhances U of A’s status and reputation throughout our state, our country and beyond.

The Carnegie Foundation based the classification on data from 2008-2010 in such areas as research expenditures and results, staffing, and doctoral conferrals. After examining 4,633 institutes of higher learning, Carnegie placed U of A in the top group which includes only 108 universities. Within the 108, the Foundation does not rank any one school as better than any other.

A ranking such as this helps in numerous ways – directly and indirectly. It will provide an important boost to recruitment of more top-notch researchers and superior students. As the quantity and quality of U of A’s research projects become increasingly recognized, more research grants will be received. And that means big benefits to NW Arkansas’ economy. Higher salaries equates to greater spending power in all categories from housing to restaurants, to shopping malls and groceries, houses of worship, ad infinitum.

It’s just a circle of good no matter how one looks at it.

I’ve known for some time that U of A programs and courses of study are top notch. I have a master’s in political science from U of A and I’m now taking classes in the Journalism department. The locals have known all along about U of A’s status. It’s a pleasure for me to help spread the good news. At last—it’s not a matter of “thank goodness for Mississippi” any more.

For more information, check the U of A announcement.

Census Results for Northwest Arkansas

The results are in and it’s good news for Northwest Arkansas.

Fayetteville now has 73,580 people, a growth of 26.8% since the 2000 Census.

Springdale grew to 69,797 residents, an increase of 52.4%.

Bentonville’s growth of 78.9% topped all the cities in Arkansas. Its population is now 35,301.

Rogers experienced a 44.1% increase to bring its population to 55,964.

Little Bella Vista isn’t so little any more. It now boasts 26,461 people, an increase of 59.6%.

These are huge increases in a short ten-year span. To put them in perspective, total population in all of Arkansas increased by 9.1%. Little Rock, the state capitol located in Pulaski County, increased 5.7 percent, from 183,133 in 2000 to 193,524 in 2010.

Pulaski County itself grew 5.9%.

Benton County, which includes Bentonville and Rogers, is now home to 221,339 people. That’s a 44.3% increase.

Washington County, which includes Fayetteville and Springdale, now has 203,065 people, a growth rate of 28.8%.

It would appear Benton and Washington Counties are the driving force for growth in Arkansas.

As required by law, legislative districts must be redrawn after each ten-year census. The state must ensure that population in each of the districts is equal within 1% variation.

The result is that the geographical area of Congressional District #3 will shrink. It now includes Benton, Boone, Carroll, Crawford, Franklin, Johnson, Madison, Marion, Newton, Pope, Sebastian, and Washington Counties.

Arkansas has usually kept counties intact when drawing districts. Looks like that practice will have to be replaced with some counties being split for the first time.

So, change happens. All in all, the growth is good news for NW Arkansas. As our population grows, so does our influence and clout.

Let’s face it. No one wants to move to a declining area.

For more information: Census Bureau Website

What’s Happening to the Mortgage Interest Deduction for Homeowners?

The Obama administration is trying, once again, to limit the amount of interest taxpayers can deduct when itemizing deductions on their federal income tax returns. One option would exclude citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Similar proposals have been made in the past two years but Congress did not approve the cuts.

Home ownership has been the American dream since long before I was born. The income tax deduction for mortgage interest is what makes ownership possible for many people.

Perhaps not in Arkansas as much as, let’s say, California or several other states, a $500,000 home is not a mansion. Indeed, it is more the norm for average families.

Everyone knows our country is deeply in debt. We must find sensible ways to cut spending and increase income. I just don’t believe homing in on average people trying to live a decent life in America is the way to do it.

Our government spent billions of dollars in “bailout” funds to big businesses, large banks, and other large firms which were deemed “too important to fail.” It continues to spend billions on unpopular wars. Does that somehow equate to letting American families fail?

Usually I prefer to not get too political here in my blog, but I must speak out. Yes, the current proposal to limit interest deductions is for mostly high-income people with high dollar homes, but where will it stop? It is one of the few deductions that “normal” middle class people have. The deduction has been around since 1913. That’s 98 years of helping families to stop paying endless rent and instead own their own homes.

The National Association of Realtors has indicated that the interest deduction is one factor bringing stability to the housing market. Limiting it at this time will create serious problems for consumers and worsen the entire real estate market. The trickle-down effect could be catastrophic.

For more information:

Realty Times
Fox News
Housingwire1
Housingwire2
Housingwire3

NW Arkansas Bike Trails

Joining bike trails from Fayetteville to Bella Vista is closer to reality due to a grant from the Department of Transportation. $15 million will be provided through the “Transportation Investment Generating Economic Recovery Program.”

Fayetteville, Bentonville and other NW Arkansas towns have already created many existing bicycle trails. But the idea now is to join them all. Read More.

Walmart Jumps on the Healthy Food Bandwagon

Walmart bashing is fashionable in some circles, but credit and recognition should be given when earned. They have made some excellent decisions in recent years, such as promoting sustainability and introducing “green” features in their stores.

Now Walmart has jumped on Michelle Obama’s healthy eating bandwagon. This bodes well in the fight to reduce childhood obesity and put healthier food on family dinner tables across the nation.

Our giant neighbor in Bentonville sells more groceries by far than any other retailer. Sheer size alone gives Walmart tremendous clout. It frequently pulls the strings that cause entire industries to shift priorities, such as recent labeling changes on their Great Value label and encouragement of other products to do the same.

Here’s a summary of what Walmart plans to accomplish by 2015:

*Reformulate packaged food to reduce salt by 25% and sugar by 10%.
*Remove all trans fats and hydrogenated oils from processed foods.
*Reduce prices on fresh fruits and vegetables.
*Lower prices on healthy-choice items such as whole-wheat pasta and low-sodium canned goods.
*Build stores in poor areas that don’t have grocery stores.
*Develop a logo for healthier items to make them easy to identify.

That’s quite an agenda for the next four years. Making food healthier while keeping the taste Americans have come to love will take a tremendous effort.

On the other hand, rarely does Walmart do anything that won’t make them more money in the long run. But this time the public good and their healthy food initiative may have common goals. The only other necessary ingredient is the average American--who also needs to jump on the bandwagon.

For more information:

Arkansas Business

Bloomberg News

NPR

Washington Post

Fayetteville Drops Thoughts of Action Over Walton Arts Center Expansion

It seems the drama over action by the City of Fayetteville regarding a new Walton Arts Center in Bentonville has died a natural death.

When the announcement was first made that WAC would build a 2,200 seat performing arts center in Bentonville as well as a new 600 seat facility adjacent to the existing site in Fayetteville, there was talk about a lawsuit which, if successful, would deny WAC the right to build anywhere but in Fayetteville.

That idea did not gain much support. Next came a resolution put forth by two members of Fayetteville city council to renegotiate the current agreement with WAC, which does not expire until 2017. The resolution would require the renegotiation in order to make certain an equitable distribution of fundraising and programming for Fayetteville’s WAC.

That proposal was defeated 6-2 at a city council meeting last week.

Walton Arts Center staff has stated that it is committed to maintaining quality arts and entertainment in Fayetteville.

I think we should all move forward. It shouldn’t be Fayetteville vs. Bentonville. It should be what is good for all of Northwest Arkansas.

For more information:

My blog post a few weeks ago
Fayetteville Flyer blog

Santa Came Early to NW Arkansas

In this time of giving and good will the announcement last week seemed appropriate. Grants totaling $80,000 were awarded to local NW Arkansas non-profit groups.

The funds came from the 2010 Bikes, Blues and BBQ rally, which was held in early fall. It’s a substantial increase from 2009 grants of $45,000. I think the 2010 grants bring the grand total to more than $600,000 since BBQ’s first rally in 2000.

Donations went to many worthwhile organizations in NW Arkansas – Fayetteville Boys & Girls Club, Meals on Wheels, Horses for Healing, Seven Hills Homeless Center, Youth Bridge, Big House Youth Outreach, and more. A complete list of all grants will be available later.

Bikes, Blues and BBQ is the only rally in the country that donates all proceeds to charities. It brings together bikers from all over the country, thousands and thousands of spectators, family fun, food, entertainment, and contests. Its very presence is a big boost to the local economy.

Turning all profits over to non-profit organizations is only icing on the cake.

Plans Announced for Walton Arts Center(s) Expansion

Bentonville will be the location of a new 2,200-seat Walton Arts Center. Hardly anyone was surprised at this news.

Several months ago, Walton Arts Center-Fayetteville was notified that the Walton Family Foundation would be lead donor only if the expansion were in Bentonville. This statement was crystal clear but it did not preclude proposals by various entities to build it elsewhere.

Fayetteville and University of Arkansas presented a joint proposal to expand the existing site in Fayetteville. Springdale proposed building a new WAC near the ballpark, which offered excellent access to I-540. Rogers offered a proposal and some individual landowners also made proposals.

So a new, larger performing arts center will be built at or near downtown Bentonville, but Fayetteville also received good news. A new 600-seat facility will be built adjacent to the beautiful, existing WAC. I believe this announcement intrinsically means Walton Family Foundation will continue to be the major supporter for Fayetteville WAC sites.

Exactly what “adjacent” to WAC means will be determined later.

As far as that goes, there are a lot of things to be determined in the future. Site selection, funding, timetables, cooperation from and with local governments, and space for additional parking in Fayetteville.

Talk of expansion has been ongoing for at least two years. Big deals take time and this is a big deal. The announcement by Walton Family Foundation is a win-win for both Bentonville and Fayetteville. To stop its support for WAC-Fayetteville would have been catastrophic for the city.
The announcement is certainly wonderful news for all of Northwest Arkansas.

But the drama is not all on-stage. The attorney for the City of Fayetteville is of the opinion that agreements signed in the past bind WAC to be located only in Fayetteville. He opines that Fayetteville should sue to stop the Bentonville site. At this point no official action has been taken. In the meantime, University of Arkansas issued a statement that it will not support a lawsuit. And in today’s paper, some Fayetteville officials have gone on the record against litigation, seeing it as divisive and counter productive.

The future looks bright to me. Let’s leave the drama to the actors. I’m all for culture, the arts, and good entertainment. The Walton Family Foundation has done and continues to do many good works for the people of Northwest Arkansas.

For more information:

Walton Arts Center
Walton Arts Center Expansion Plans

New Outdoor Ice Skating Rink Opens in Bentonville

A beautiful new facility just opened in Bentonville’s Ernie G. Lawrence Plaza, just a block or so off the square. It includes an outdoor skating rink for winter and will be converted to an interactive water feature during warm months. What fun!

Ice skating is a wonderful activity for people of all ages. I grew up in Northern Minnesota-- hockey country--where I learned to skate on a rink like this. I spent many hours in the cold outdoors and it was exhilarating (but thank goodness also for warming shacks). I also tried my hand at ice hockey, even though it was a "boy sport" then.

For the most part, it doesn’t get cold enough here in NW Arkansas to find a safe outdoor venue for ice skating – until now. Bentonville’s latest contribution to quality of life now provides this opportunity to the public. Only $3 to skate and skates can be rented for only $2 more.

I’m still trying to figure out how they can keep the ice frozen when the temperature gets above freezing. The recent nippy days and nights are usually the exception rather than the rule, as it gets up to the 40s or even 50s during the day during our Arkansas winters. But if there is a secret formula for the ice, more power to the city of Bentonville.

The Jones Center for Families in Springdale has offered a big, beautiful indoor skating rink for the past 15 years and it is open year round. People can simply skate, learn figure skating, play in hockey leagues, or go curling. The rink provides fun for ages 4 to 104 (I don’t think anyone has reached maximum age yet!)

If you’ve never ice skated and would like to get inspired, here’s a great feature-length documentary for the whole family to watch.

NW Arkansas’s Economy Continues to Improve - Slowly

Slow and steady seem to be the key words to describe improving economic conditions, in Arkansas as well as the country. We all wish the words could be dynamic or thriving – but let’s appreciate every bit of good news we get.

The U.S. Labor Department reported the economy added more than 150,000 jobs in October. That’s good news.

The average number of hours worked increased by 6 minutes. Doesn’t sound like much but it is good news because employers tend to increase employees’ work hours before adding new hires. Let’s face it, these days any increase in hours worked is good because people take home more money.

The number of first-time applicants for unemployment decreased. I don’t even have to tell you that’s good news.

But even better news has been happening all along in Arkansas.

Arkansas’ unemployment rate has consistently been about 2% lower than the national average, although it rose 0.1% in October compared to September to 7.8%. The national unemployment rate continued at 9.6%. The Fayetteville-Springdale-Rogers MSA* leads the state's metros with the lowest 2010 third-quarter jobless rate, at 6.3%.

Arkansas is ranked in the top 10 for states with the LEAST number of foreclosures.

Arkansas’ taxable sales were up 0.9% in the third quarter of 2010.

Projections are that Arkansas will show personal-income growth ahead of the U.S. rate at 6% for 2011.

Positive signs are beginning to appear. Keep your fingers crossed for the trend to continue. Why? Because the more jobs there are, the more people will want to move here and buy houses.

* Fayetteville-Springdale-Rogers MSA (Metropolitan Statistical Area) includes Benton, Madison, and Washington counties in Arkansas as well as McDonald County in extreme southwest Missouri.

For more information:

National Public Radio Report
Arkansas Business Report

Two More Awards Earned by NW Arkansas Communities

There are so many valid and varied reasons for the outstanding quality of life we enjoy in NW Arkansas. I’ve written many times about clean air, beautiful scenery, recreation opportunities, entertainment, and more that all of us more or less take for granted.

Now I’m pleased to note that the cities of Bentonville and Fayetteville have each been named a Volunteer Community of the Year. The award was given by the Office of Governor Mike Beebe. A total of 12 awards were given throughout the state.

It’s the second year in a row Fayetteville has earned the title. For Bentonville, it’s the first year (and I’m sure there will be more awards in the future.)

According to city of Bentonville, 12,000 volunteers worked in excess of 163,000 hours during 12 months ended August 31, 2010.

Fayetteville, with its much larger population, logged 38,000 volunteers who donated more than 500,000 hours.

Volunteers serve in a multitude of ways – on committees and boards, in libraries and schools, animal adoptions and shelters, recycling, community events, food pantries, and more.

Every one of these wonderful people deserves our thanks for helping to make our communities great places to live.

My hat is off to them. It’s nice to see them receive some official recognition.

Fayetteville does it again!

The Home Depot Foundation’s Sustainable Cities Institute has awarded the City of Fayetteville a half million dollars to increase long-term solutions for green planning and development. Fayetteville is one of only 2 cities nationwide out of 37 who applied to get the grant.

Initial plans are to build 40 ENERGY STAR-certified homes for low to moderate-income families in the Walker Park neighborhood. In addition to building to meet LEED standards, the design will maximize tree canopy conservation and will consider urban cooling eco-services. A section of the trail system will be extended to the neighborhood and a community garden is also included in the plan.

For more information, click here.

NW Arkansas Craft Fair Weekend Locations

Come join the throngs of vendors and buyers at arts and crafts extravaganzas throughout NW Arkansas October 14th through 17th. But don’t wait until the 17th. All the best items will already be gone and some of the shows close on the 16th.

These shows attract people from hundreds of miles away. Each year the shows grow larger and new vendors vie for available slots to show and sell their handmade, unique items. It’s estimated some 200,000 people will flock here this weekend – and the weather is perfect! Bright, clear, sunny, with temps in the seventies. I can’t imagine a better time to view all the goodies, and admission is free.

Here’s a quick rundown of locations with addresses and indications of whether they are open on Sunday or not:

Bella Vista
1991 Forest Hills Drive (intersection of AR 279 and AR 340)
Closed Sunday

Spankler Creek Farm
8334 W. McNeely Rd., Bentonville
Open Sunday until 4 PM

Southern Suzy’s Craft Fair (Indoors)
Indoors at Clarion Hotel
211 SW Walton Blvd, Bentonville
Open Sunday until 2 PM

War Eagle Fair
11045 War Eagle Rd (east of Rogers) or Hwy 303 North from Hwy 412 (east of Springdale)
Open Sunday until 4:30 PM

Sharp’s Show of War Eagle
(next to War Eagle Fair – see above)
Open Sunday until 4 PM

Frisco Station Mall (Indoors)
100 N. Dixieland, Rogers
Open Sunday until 4 PM

Ozark Regional Shows (Indoors- 2 locations)
John Q. Hammons Center
3303 Pinnacle Hills Pkwy, Rogers
and
Holiday Inn
1500 S. 48th St., Springdale
Both shows are closed on Sunday

Jones Center (Indoors)
922 E. Emma Av., Springdale
Closed Sunday

Walton Arts Center Hits a Home Run

It’s the post season for baseball, so this analogy seems appropriate. Last evening I attended the 2nd concert of the Walton Arts Center’s 10x10 series. This is a series of concerts priced at the ridiculously low price of $10 per ticket in an effort to get more people to attend events at the WAC. There will be 10 of them during this concert season of various kinds of music, dance and other events. The first one was a chamber music concert on Friday by the Chamber Music Society of Lincoln Center (New York).

The concert I saw last night was an unforgettable experience--an evening with Omara Portuondo, an 80-year-old “torch singer” in the old tradition from Cuba. She was accompanied by a group of 5 top caliber jazz musicians (Latin jazz).

Portuondo is a funny, charismatic, extremely talented singer, who (although she spoke entirely in Spanish) was able to communicate with the audience and establish a rapport early on. Through hand gestures she got everyone clapping and participating.

Sometimes it wasn’t immediately evident what she wanted us to do, but eventually we caught on. For example, at one point, she bent down and began chanting, which the audience was also supposed to do. We didn’t, until she stood up and stated loudly the only words in English that she spoke all evening: “pig sooie.” She had done her homework and had us calling the Razorbacks in the middle of her concert, mostly of very old songs in Spanish from the 40s. The only one that most people probably recognized was Guantanamera, and also perhaps Beseme Mucho.

The piano player was extraordinary, as were the other musicians: a bass player, guitarist, and two percussionists, one on a normal drum set and the other on other percussion instruments like conga drums, special sound effects, etc. The concert was structured like a jazz set and Portuondo gave each musician a chance to solo and shine various times throughout the concert.

I had never heard of this lady before, but according to her bio, she is a legend in her own country. It’s really a shame that politics gets in the way of art, where the Cuban trade embargo has deprived us of such extraordinary music for such a long time. I would have liked to see this lady in her prime.

And I applaud the Walton for bringing an event such as this to NW Arkansas. We really are lucky to have such a facility here where we can hear great music, see Broadway shows and dance troupes, as well as many other sorts of entertainment. This concert was totally unexpected, from my point of view, and it made me realize that I really do like Cuban music.

For information about upcoming concerts in the 10x10 series as well as other events at the Walton Arts Center, click here.

The Recession Supposedly Ended in 2009 – Who Knew?

The powers that be (The National Bureau of Economic Research) have declared the recession over – going so far as to say it actually ended in June 2009. I suppose that’s good news to politicians and statisticians but most regular families don’t believe it and have not seen any proof of it.

Statistics by academic economists don’t impress an unemployed person who is struggling to pay his bills and feed his family. Nor do they influence the family who just lost their home to foreclosure.

More than 15 months have passed since June 2009. Consumer confidence is still low, though slightly higher than it was. Home sales have dropped off a cliff compared to 2009 and that year was nothing to brag about. Unemployment is still high and we’re told it may go still higher.

Mortgage rates are near an all-time low but homes aren’t selling because even the employed folks worry about job security.

This recession has been one of the longest and most devastating I can recall. So many people are seriously distressed and demoralized. Most everyone has suffered to one degree or another.

I can only hope the average person will soon see evidence of the recession’s end. That will mean that they might actually get out an want to buy a house.

For more information, click here.

Bikes, Blues & BBQ Rally in Fayetteville

It’s that time of year again. In just a little more than a week from now, Northwest Arkansas will once again welcome motorcycles from all over the country to the 11th Annual Bikes, Blues & BBQ Rally. The rally runs from Wednesday, September 29 through Saturday night, October 2, 2010.

Many people will rev up their bikes and arrive early. Who can blame them for wanting to be here as long as possible? The Ozarks are beautiful and the weather is near perfect in the fall. Warm days, cool evenings, and hints of fall color in the trees.

There will be thousands of bikes to see with events such as a Poker Run, a Parade of Power, customization competition and Battle of the Bikes competition.

And this year there is so much music and entertainment planned, it has to be spread over several venues. It all starts Wednesday, September 29, at 5:30 and keeps on going.

The BBQ is world class. The smoky aroma of barbequed chicken, ribs, pork, and beef brisket wafts around Fayetteville beginning Friday morning with public tasting events. The best of the best will be named Saturday afternoon with trophies and cash prizes awarded.

A 2010 Harley-Davidson Rocker C motorcycle will be raffled off.

More than 100 vendors will be on hand with everything from sunglasses to Harleys.

Don’t overlook (perhaps I say “look over”) the Ms. BBB competition.

As if all that isn’t enough, classic cars & trucks, street rods, tuners, and low riders will also be showing off.

Join the hundreds of thousands of people who come each year for the BBB Rally. Fayetteville is only six hours from Dallas and St. Louis, five hours from Memphis and Kansas City, and two hours from Tulsa, Oklahoma and Branson, Missouri.

The rally is good, clean fun. A lot of effort goes into keeping it family friendly and in line with community values.

BBB is self-funded and does not receive any government funding. All proceeds go to local charities. Since the rally started in 2000, more than a half-million dollars has been donated.

For more information, check out the BBBQ website.

Q2 Skyline Report a Mixed Bag—the Good, the Bad and the Ugly

I try to attend as many events as possible, sponsored or promoted by the Center for Business and Economic Research of the Sam Walton School of Business at the University of Arkansas. The information given often gives validation to my own anecdotal observations about the economy and the housing market in NW Arkansas.

Last Friday Arvest Bank (for whom the report is prepared) sponsored a breakfast for Realtors® and affiliates in Washington County to outline the contents of the 2nd quarter Skyline Report prepared by the CBER. The Skyline Report looks at Residential, Commercial and Multi-Family real estate in Northwest Arkansas. However, Kathy Deck, Director of the Center, usually puts this information into a larger economic context in her presentations.

According to Deck, the key to the real estate market in NW Arkansas now is employment opportunities. Although our unemployment rate is significantly lower than the national rate, it is still higher than in past years. And without new job creation, new people will not be drawn to the area to buy or rent houses or apartments or to lease or purchase commercial space.

Another factor is that although most national economic measures show a recovery, consumer confidence is still very low. Thus despite the lowest interest rates in years and incentives such as the tax credit, most people are not feeling like the economy has improved and are acting accordingly—saving more and spending less, especially on credit. Plus nationally, large private sector employers are not hiring new people (which one would normally expect in an improved economy), despite increased profitability.

In NW Arkansas, there was a 0% net increase in non-farm employment growth between June of this year and June of 2009. There was increase in education and health services, government, professional and business services, but the other sectors lost jobs. These included the leisure and hospitality sectors, financial activities, trade and transportation, and construction.

In the commercial real estate sector, there were 70,805 square feet of positive absorption in Fayetteville in office and retail space, and there were 127,787 square feet of positive absorption in Springdale, primarily in warehouse space. Nevertheless, in all categories of space, there was more available than one year ago, a dangerous situation since the absorption was weak compared to the amount of space available. There were also anecdotal reports of so-called “aggressive tenant demands” and free rent, greater build-out allowances, delay of scheduled lease rate increases at renewal, and the removal of long-term termination clauses. Commercial vacancy rates in all of the NW Arkansas communities are higher than the national average of 8%.

In the multi-family sector, there are variations between Fayetteville and Springdale, due primarily to the fact that rental units associated with the University of Arkansas comprise a large part of the rental market. However, in Fayetteville the vacancy rate for 1 and 2-bedroom apartments is high, primarily since in the past few years there were a number of large complexes built to accommodate a proposed increase in the number of students at the U of A. Enrollment did increase, but the university also built some new dorms, so with the new apartment complexes this created a glut of rental housing in the university sector in Fayetteville.

The Q2 Skyline Report distinguishes between units newer than 2008 and those which are older. The vacancy rate for the 11,256 older units in Fayetteville was 15.4%, while that for 1885 units constructed in 2008 or later was 31.2%. New apartments have also been constructed in Springdale, where the vacancy rate for 5,732 older units was higher in Q2, 12.9%, while for 312 newer units built after 2008 was 6.7%. In NW Arkansas as a whole the vacancy rate for 25,476 units constructed before 2008 was 14.0% and for units built in 2008 or after was 34.8%. Many of the units constructed in 2008 are still vacant.

With regard to condominiums, Fayetteville has the largest quantity of these. In Q2, there were only 9 sold in Fayetteville with an average sales price of $120 per square foot. However, one did sell for over $300 per square foot, 2 more sold for over $100 per square foot, and the remaining 6 sold for less than $100 per square foot. From my own experience, the Fayetteville condos are of three different types at different price points—the pricey central Fayetteville units as compared to those elsewhere in the city and the least expensive condos for the university market.

Finally, in the residential sector building permits are back at 2008 levels, a reasonable balance between the net increase in population vs. the number of new houses being built to serve those families. Gone are the days of overbuilding with a huge inventory of new homes. Now the oversupply is in existing housing. Currently there are over 5000 homes listed in the NW Arkansas MLS. Prices are more stable and have declined less in Q2 than in past quarters: 2.9% in Washington County and 2.3% in Benton County.

Altogether, we have to wait and see what will happen with the housing market. Despite incentives in the government stimulus measures passed by Congress, it has not improved markedly, and in NW Arkansas, prices are still generally declining. It’s a great time to purchase a home since interest rates are at record lows, but with consumer confidence also low, the task will be to convince potential home buyers to take the plunge. Even though the first-time home buyer credit has ended, the low interest rates--coupled with the large selection of homes on the market at modest prices--make this an ideal time to buy a home.

Let’s Keep Walton Arts Center in Fayetteville

There’s been talk of enlarging or building a new Walton Arts Center for more than two years. A feasibility study indicated Northwest Arkansas had grown to the point that it could support an arts center with 2,500 seats.

The existing WAC opened to great fanfare in 1992 in downtown Fayetteville and proved to be the impetus that helped revitalize the entire area. Since then WAC has hosted world famous artists, Broadway shows, ballets, and too many more to list in this space. However, it has only 1,200 seats and limited parking.

The city of Fayetteville owns WAC but it is widely known that the Walton Family Foundation has always been the lead donor.

So it was bad news when the Foundation recently said it would not continue to be the lead donor if a new WAC was not built in Bentonville. To most people, that seemed to mean it would be Bentonville or it just wouldn’t be.

But Walton Arts Center invited proposals for enlarging or building a new arts center and received 24 proposals from cities, chambers of commerce, the U of A, and individuals. The next step will be review of each proposal. The review committee hopes to narrow the proposals down to perhaps three by December 2010.

I know the review will be a daunting task. Personally I would love to see Walton Arts Center stay in Fayetteville and I believe Fayetteville’s proposal stands an excellent chance of approval. It is the only one of the proposals that offered potential funding of approximately $33 million.

That’s not to say Springdale and Bentonville did not make good proposals – they certainly did. I’m just prejudiced by my affinity for Fayetteville. Plus the Fayetteville proposal has the advantage of expanding the facility on the current site.

Wherever the new Walton Arts Center ultimately lands, it will be a major economic benefit to that area.

If you want to view the proposals, click here. For more information, click here.

For Sale: 3BR/2BA Single Family House in Fayetteville, AR, $120,000

I just discovered a wonderful new tool to feature listings that I have. Here's a wonderful country retreat not far from town at a modest price.

For Sale: 3BR/2BA Single Family House in Fayetteville, AR, $120,000