Judy's Blog

Kudos to Fayetteville and Mayor Dan Coody for Trails Plan

Judy Luna (Keller Williams Realty NW Arkansas) — Thu, 12 Jul 2007 22:09:20 -0500

The city of Fayetteville, Arkansas, has been planning and building multi-use trails for several years. This effort recently received nationwide recognition when Mayor Dan Coody was presented an award for climate protection at the 75^th annual meeting of the U. S. Conference of Mayors in Los Angeles last month.

More than 100 cities competed. Applicants were judged on mayoral leadership, creativity and innovation, reduction of greenhouse gas emissions and/or improved quality of life in their community.

Fayetteville's award was in the small cities category. Albuquerque, New Mexico, won a similar award in the large city category

Sixteen miles of multi-use trails have been built to date with approximately five miles added each year. Future plans call for a total of 129 miles of multi-use trails and 163 miles of on-street linkages to the city.

These trails add to the quality of life in our city. I frequently drive by some sections of the Heritage Trail and see people walking, jogging, or bicycling. Lake Fayetteville boasts more than five miles of nature trail where people can be seen enjoying the surroundings every day. More than a dozen other trails of various lengths and terrain can be easily accessed throughout the city.

On a slightly different note but one that ties in with our quality of life discussion, the city of Fayetteville has been named a Tree City USA by the National Arbor Day Foundation. This award goes to communities for their commitment to community forest. It is the twelfth year Fayetteville has received this national recognition.

For more information:

http://www.nwanews.com/nwat/News/54448

http://www.nwanews.com/nwat/News/54141

http://www.accessfayetteville.org/government/parks_and_recreation/press/2007_tree_city_usa.html

Housing Market in NW Arkansas

Judy Luna (Keller Williams Realty NW Arkansas) — Thu, 24 May 2007 00:31:16 -0500

Northwest Arkansas has finally fallen prey to national real estate trends. In the 4th quarter of 2006 Fayetteville's prices, for example, fell 14%, but in Benton County prices continued rising. But those prices fell in the first quarter of 2007 for the first time in several years. With an oversupply of homes on the market, especially over $200K, it is definitely a buyer's market. This is actually a very good time to purchase a home, since even with recent up-ticks in interest rates, prices have moderated and there are some bargains to be had.

To view a full analysis of the first quarter of 2007, read my blog at http://nwarealestateblog.blogspot.com. And for an analysis of 2006 compared to 2005, write me an email at judy@judyluna.com, and I will send you a copy of my 31-page market report (even includes graphs!). This includes detailed analysis fo the 5 major NW Arkansas towns--Fayetteville, Springdale, Rogers, Bentonville, and Bella Vista.

NW Arkansas Housing Market

Judy Luna (Keller Williams Realty NW Arkansas) — Wed, 28 Feb 2007 20:35:03 -0600

The housing market in NW Arkansas has slowed some, following national trends as well as experiencing a seasonal slowdown (there are always fewer homes sold in the winter--and we've had a lot of cold weather lately--until the past week, that is).

In mid-February the 4th Quarter 2006 Skyline report was released with some good news as well as less-good news (depending on whether you live in Benton or Washington County). The good news for Benton County, according to Kathy Deck, Interim Director for the Center for Business and Economic Research at the U of A, is that building permits have "fallen off a cliff", that is decreased significantly. That was something that had to happen, given the oversupply of homes in Benton County, especially in the higher price ranges. There is still an oversupply, but the absorption rate has remained relatively constant, and the average and median prices are still increasing there.

For Washington County, although the number of building permits was also down and the number of homes under construction in active subdivisions was also down, the number of complete but unoccupied homes in Washington County continued to rise, while the absorption rate fell slightly. This means that homes currently on the market will take somewhat longer to sell, compared to Benton County.

To see my blog with more details on the 4th quarter Skyline Report, visit http://nwarealestateblog.blogspot.com

I have also been compiling my own market report according to statistics drawn from the NW Arkansas MLS. For the 4th quarter of 2006, the median and average prices in Fayetteville and Springdale declined, but this is normal behavior for that time of year. In 2005 (a "hot" year for real estate sales) there was also a decline in the 4th quarter, but then as the spring and summer home-selling season prices began to increase again. The decline for the 4th quarter of 2006 (7.83%) was less than the decline for the 4th quarter of 2005 (13.44%). Looking at the whole year, the median sales price for Fayetteville was $179,950 and the averages sales price was $211,356 for 2006.

For Benton County, the 4th quarter brought increases in the median and average prices of homes for both Bentonville and Rogers, 5.19% and 4.85% respectively. However, the pattern is slightly different there, even last year, since the seasonal decline happened in the first quarter of 2006 instead of the 4th quarter of 2005. The annual median home price in Bentonville (now the most expensive community in NW Arkansas to replace Fayetteville) was $185,999 for 2006 and in Rogers it was $168,632. The average sales prices for Bentonville and Rogers respectively were $229,353 and $214,853 for 2006.

It should be noted that all of these figures are below those for the nation as a whole. The issue of "affordable" housing is an important one here in NW Arkansas. For the economy to continue to grow, there have to be homes for working folks as well as high end homes. With this in mind, I interpret the lowering of median and average prices as a positive thing, since these figures are (in part) dependent on the supply of homes available for purchase. The Skyline Report also indicated that an increased number of permist for lower-end homes had increased.

First Bilingual Post Office in Arkansas

Judy Luna (Keller Williams Realty NW Arkansas) — Wed, 31 Jan 2007 23:03:22 -0600

Lots of Hispanics have been moving to Northwest Arkansas (and other areas of the state as well) during the past 10 years or so. According to newspaper estimates, the Hispanic population of Washington County increased 73% from 2000 to 2005, bringing the total to more than 22,000 people. During the same time frame Benton County's Hispanic population increased 78%, to approximately 24,000 people.

With those figures in mind, it is good news that a bilingual (English/Spanish) U.S. Post Office is now open in Springdale. It's located in the southeast section of the city, in a tiny strip mall at the intersection of Hwy. 265 and Electric Avenue.

The increased Hispanic presence shows on the streets too--many more signs in Spanish for not just restaurants, but for other services as well. Every kind of business from tax preparers to retailers are hiring bilingual people to cater to this growing market. When I got my real estate license here, I was only the second Spanish-speaking agent catering to this market. Now there are many more, only these folks speak Spanish as a first instead of a second language.

So it makes sense that there should be a bilingual post office as well. Now we need one for the increasing Asian population and the Marshallese (from the South Seas Marshall Islands). ;-)

New Opportunities for Shopping in NW Arkansas

Judy Luna (Keller Williams Realty NW Arkansas) — Wed, 31 Jan 2007 18:19:08 -0600

Pinnacle Hills Promenade, the newest destination for upscale shopping, opened last fall in time for the Christmas season in Rogers. Everything (almost everything) you always wanted can be found there.

The Promenade calls itself a "lifestyle." The open-air mall features almost 1 million square feet of retail and office space along with beautiful architecture, fountains and verdant landscaping. It is an "outdoor" mall, which may be great in the spring, summer and fall, but I wonder when temperatures drop in the winter, whether business to the many stores will suffer.

Anchors are JCPenney and Arkansas' own Dillard's. Malco Theaters will feature an updated look and 12 screens for your viewing enjoyment. There are too many specialty shops to list here in addition to food of all types. Some stores, such as Barnes & Noble, aren't open yet but will be soon.

Naturally, something of this magnitude creates a need for more infrastructure. New intersections have already been created and construction is underway in I-540 for new on- and off-ramps. When complete, they will replace the Perry Road overpass and the new road will be named "Promenade." Time will tell what else has to be done as other businesses are lured to the area.

Also last fall Sam's Club, the wholesale membership club operated by Wal-mart, finally opened a store in Bentonville, where the Wal-mart home office is located. It seems a little strange that it took so long for this to happen, but with the phenomenal growth in Benton County, the retail giant evidently felt the time was right. Previously there was only one Sam's Club in NW Arkansas, in central Springdale. Soon another will be opening in Fayetteville.

But let's not forget Northwest Arkansas Mall in Fayetteville. It has been open for several years and has been a mainstay for the entire area, including parts of Missouri and Oklahoma. It not only has JCPenney and Dillard's but also a large Sears. All together some 100 stores are there - all heated and air-conditioned indoors. NW Arkansas Mall is located on Hwy. 71B, where north Fayetteville and south Springdale meet.

Most likely NW Arkansas Mall will lose a bit of business for the first couple of months after the Promenade opens. That always happens because people just like to see what's new. But I think there is enough growth to support both malls.

For more information:

http://www.pinnaclehillspromenade.com/html/index9.asp

http://www.generalgrowth.com/Properties/ndPinnacle_Hills.htm

http://www.northwestarkansasmall.com/

Condo-mania. How many is too many?

Judy Luna (Keller Williams Realty NW Arkansas) — Wed, 31 Jan 2007 18:07:53 -0600

A number of years ago there wasn't a condo for sale in Fayetteville but that changed rapidly as developers began turning everything available into condos in central Fayetteville. First there was the soo-called Three Sisters building, then the UARK Bowl, then the old St. Joseph's Catholic Church and school. Now there are also several new (large) buildings either planned or under construction.

The problem is that these condos are not inexpensive. Condos currently on the market in central Fayetteville are listed at around $200 per square foot--certainly not for the average working person. Granted, many retirees who might be downsizing may have the money to pay these prices, as may some young, well-paid professionals who want to be within walking distance of restaurants and nightlife on Dickson Street.

With the new mixed-use zoning plan, city planners anticipate turning Fayetteville into a "real city" with shops and commercial entities on the first floors of some of the new construction buildings, with condos upstairs. The problem is that land prices, especially in town, have risen so high that these condos are undoubtedly for an affluent group of people. The latest project to come before city planners calls for 20 condos, retail space and parking on a piece of land that is less than 1 acre in size. The land and existing building, which will be demolished, sold last year for $980,000. I have no idea what the asking price for these living spaces will be.

I'm not arguing with the concept proposed by the planning commission--a vibrant center city where commercial entities are within walking distance. It's just that it seems that no one has asked the question, "will there be too many condos as a result"? Despite a continuing flow of people into NW Arkansas, can Fayetteville's population absorb this large number of expensive multi-family units downtown?

For more information:

http://www.nwarktimes.com/nwat/News/42328/

http://www.nwarktimes.com/nwat/News/41377/

http://www.nwanews.com/adg/Business_Matters/153398/

http://www.nwanews.com/nwat/News/42544/

http://www.nwarktimes.com/nwat/News/42366/

http://www.nwaonline.net/articles/2006/07/01/news/01bzcondosuit.txt

Northwest Arkansas--A Great Place to Live!

Judy Luna (Keller Williams Realty NW Arkansas) — Sun, 09 Jul 2006 21:22:23 -0500

Northwest Arkansas is a great place to live. I know because I relocated here with my family about 12 years ago and have not regretted it. We were looking for a small town, but not too small, for quality of life reasons. Fayetteville Arkansas filled the bill.

With the University of Arkansas as a mainstay of the city, Fayetteville is the cultural center of NW Arkansas. Other nearby communities include Bentonville (home office of Walmart), Springdale (home office of Tyson Foods), Rogers (adjacent to Beaver Lake) and Bella Vista (traditionally a retirement destination but now with many younger folks living there as well).

The area is beautiful--nestled in the Ozark Mountains, the terrain is very hilly and wooded. The climate has 4 seasons (very mild winter compared to Northern Minnesota where I grew up), and there are only 2 really hot months in the summer (thank goodness for air conditioning!).

Another picturesque community is Eureka Springs, a traditional tourist destination from about 100 years ago. This is an artist community with many small shops and Victorian style bed and breakfasts, in addition to the usual hotels.

Fayetteville has received recognition in many publications (Forbes, USA Today, Money Magazine, among others) for being in the "top 10" cities for quality of life. But this applies to all of NW Arkansas. And the economy is vibrant (top ratings in the Millkin Report).

For anyone desiring a change of page from the large cities, this area might be the one for you. Home prices are extremely moderate compared to the East and West Coasts. And although prices have risen significantly in the past couple of years, some investors may still find what they are looking for at a reasonable price. It's a fast-growing area with lots of opportunities.

To obtain more information about the area or to inquire about purchasing a home here, don't hesitate to contact me: judy@judyluna.com

You can also view general information about the area and about home purchases in Arkansas at my main website: http://www.judyluna.com

And you can get an idea of what's available at what price at my MLS search websites:

http://www.FindFayettevilleHomes.com or http://www.NWArkansasHomeSearch.com

Licensed Realtor® vs. For-Sale-By-Owner – Which Would You Rather Do?

Judy Luna (Keller Williams Realty NW Arkansas) — Sun, 09 Jul 2006 19:39:55 -0500

A few Arkansas Realtors® have recently begun an effort to introduce legislation that would prohibit property owners from selling a home without contracting with a Realtor®. I don't necessarily agree with the proposed law.

Americans have traditionally been free to make their own decisions, right or wrong, and certainly property ownership is no exception. In fact, property rights were some of the basic rights the founding fathers of our nation valued. An early version of the “Declaration of Independence” stated the rights of the colonists to “life, liberty, and property” instead of the final version of “life, liberty and the pursuit of happiness.”

On the other hand, there are many reasons to use the services of a Realtor®, some of which are so plain to see that I can’t understand why a buyer or seller would even consider trying to go it alone: To read the entire post please go to my main blogsite at http://www.nwarealestateblog.blogspot.com .

Is Your State Tax-Friendly? It’s Not A Simple Yes or No

Judy Luna (Keller Williams Realty NW Arkansas) — Sun, 09 Jul 2006 19:37:47 -0500

Everyone asks me about taxes here in NW Arkansas compared to where they are moving from. It’s a hard question to answer, since it depends on where the person is moving from. I recently came across an article on the Internet that said Arkansas ranked in the middle of most-to-least tax-friendly states. According to this article, an Arkansasan’s tax burden is 10.3% of his/her per capita income, which makes Arkansas #27 on the list.

For property taxes, the rule of thumb that we realtors(r) use in Washington and Benton Counties, is that property taxes are slightly less than 1% of the purchase price of the home. In addition, there is a $300 per year homestead credit for one's personal residence.

In addition, homeowners in Arkansas have who are at least 65 years age qualify to have their appraised evaluation capped. This provision helps senior citizens remain in their homes instead of being taxed out of them as evaluations increase. And still another good point to note about Arkansas: it is heir-friendly. There is no estate tax in Arkansas.

The bottom line is that all political entities need revenue to provide services and that money must come from the people. All in all, I think Arkansas is very tax friendly.

For more information:

Washington and Benton County Millage rates (for local property taxes):

http://www.co.benton.ar.us/Administration/BCCollect/index.htm

http://www.co.washington.ar.us (click on information and then on Millage rates)

General information about Arkansas taxes

http://money.cnn.com/2006/04/10/pf/taxes/taxfriendly_states_2006/index.htm

http://www.bankrate.com/brm/itax/news/20051107a1.asp?caret=21

http://www.bankrate.com/brm/itax/state/state_tax_home.asp

http://www.bankrate.com/brm/itax/news/20051107b1.asp

http://www.retirementliving.com/RLtaxes.html

http://www.keepmedia.com/pubs/KiplingersRetirementReport/2002/07/01/129139?extID=10032&oliID=213

http://www.keepmedia.com/pubs/KiplingersRetirementReport/2001/03/01/128658?ba=a&bi=0&bp=97

http://www.taxadmin.org/fta/rate/tax_stru.html

http://www.forbes.com/free_forbes/2004/0315/171sidebar.html

Are Home Prices Coming Down? Probably Not, but Future Construction May Be More Affordable

Judy Luna (Keller Williams Realty NW Arkansas) — Sun, 09 Jul 2006 19:34:52 -0500

If you are in the market for a big, beautiful home with all the upgrades you can imagine, now is a good time to start some serious shopping. There is a glut of expensive homes available, especially in Bentonville, but also throughout all of Northwest Arkansas.

In the first quarter of 2006, there were 2,084 complete but unoccupied new houses in Benton County. That’s an increase of 160 percent in available complete inventory from the first quarter of 2005, with a 63 percent increase in the most recent quarter alone. Washington County experienced a smaller inventory increase of 71 percent over the past year – still a sizable increase.

Excluding the completed homes, there were 19,206 lots in the 269 active subdivisions in NW Arkansas in the first quarter of 2006. Using the most recent annual absorption rate implies that the supply of remaining lots in NW Arkansas active subdivisions is sufficient for 35.9 months (or 3 years). There were an additional 19,200 residential lots that have been at least preliminarily approved in NW Arkansas communities.

For the complete post on market conditions in NW Arkansas, go to my main blog site at:

http://nwarealestateblog.blogger.com

For more information:

http://www.nwaonline.net/articles/2006/05/07/business/01cleansing.txt

http://www.nwaonline.net/articles/2006/05/09/business/01skylineresidential.txt