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Opportunity in Northwest Arkansas

By
Real Estate Agent with Lindsey & Associates, Inc

The market in Northwest Arkansas is poised to heat up in the coming months and if you have been sitting on the side lines waiting for just the right time to pounce, I think the time is now.

During the last 5 months of 08' several things occurred that really slowed the Northwest Arkansas real estate market and they had very little to do with Northwest Arkansas. We had the normal lull in August as the beginning of the new school year approached that was compounded by the entire world watching the fascinating Presidential race as it unfolded before our eyes. In the middle of all that we had the financial crisis and bailout. Our business always slows down before school starts, but returns about the second week of school and is brisk until Thanksgiving. This year we had the normal lull, the Presidential lull, and the dreaded financial crisis lull. So our typical pattern of business was interrupted by two events that have very little to do with the Northwest Arkansas real estate market. Homes have been on the market for extended periods and some sellers have resorted to desperate measures to sell their property.

As the pace of sales in Northwest Arkansas has declined over the last 12 months most of the local home builders have suspended operations and very few new homes are being built. Although the number of homes on the market in Northwest Arkansas has increased to record numbers, the ratio of new homes is going down and there are no new homes in the pipeline at this time. The market will flip back to the sellers quickly when buyers re-enter the market.

Once the real estate market in Northwest Arkansas begins to heat up again, the opportunity to capitalize on this unique set of events will quickly disappear. Interest rates are at an all time low and unemployment in Northwest Arkansas is well below the national average. Northwest Arkansas growth has slowed the last few years, but continues to be one of the top areas in the country to live, work, and raise a family.

I have shown property over the last few weeks to buyers seeking opportunity and we have been surprised to find many of the properties going under contract.

I think the time to buy property in Northwest Arkansas is now and the opportunity won't last forever.

Show All Comments Sort:
Anonymous
Sarah Brothers

That is great information, Chris!  I believe you are 100% correct.  Thanks for sharing your knowledge with us.

Jan 16, 2009 01:23 AM
#1
Anonymous
Philip Taldo

Well put Chris......anyone that thinks they missed the "real estate boat" over the past 5 years now have a chance for a "do over" ! I think we will look back on this economic downturn and realize that REAL ESTATE continues to be the most stable commodity,year in and year out. It cannot just disappear like stocks and mutual funds and many other "paper" investments. That's why it's called REAL estate!

Jan 19, 2009 07:09 AM
#2
Chris Demarest
Lindsey & Associates, Inc - Fayetteville, AR

Thanks Phillip and Sarah,

I think the signs are pointing towards opportunity in the Northwest Arkansas real estate market and I am encouraging all of our clients to get out and kick some tires. I showed property this past weekend and several of the properties on our list went under contract and many of our appointments had to be arranged around other appointments.

Chris

Jan 19, 2009 07:32 AM
Chris Demarest
Lindsey & Associates, Inc - Fayetteville, AR

Thought you might enjoy this on the job market for our area.

We're Ranked #24 of the 30 Best Markets to Find a Job!

(According to "CareerBuilder.com")
Job seekers with no ties to any particular location often seek jobs in big cities like New York, Chicago, Los Angeles or San Francisco. But are these the places where they're most likely to find a job?

Not according to the most recent data from the Bureau of Labor Statistics. Job seekers are better off looking in such cities as Sioux Falls, S.D., Idaho Falls, Idaho, and Rapid City, S.D. All of these cities registered some of the lowest unemployment rates in September 2008.

Low unemployment rates seem harder to come by in today's economy. Unemployment rates were higher in 349 of the 369 U.S. metropolitan areas surveyed, which means 92 percent of cities have seen an increase in their unemployment rates. Only 25 areas reported lower rates, while six areas had no change. The national unemployment rate in September, 6 percent, was up 1.5 percent from 4.5 in September 2007.

Ten cities recorded jobless rates of at least 10 percent and nine areas registered rates below 3 percent. Eighty-four metropolitan areas posted unemployment rates of at least 7 percent, up from only 17 areas the year before. Only 46 cities had jobless rates below 4 percent, down from 133 areas at the same time last year. In total, Among the 310 metropolitan areas for which nonfarm payroll data were available in September 2008, 140 areas reported over-the-year employment gains, 164 reported losses, and 6 had no change.

Despite these startling figures, several cities have low unemployment rates. Here are 30 cities (and their Metropolitan Statistical Areas) with the lowest unemployment rates, according to the September numbers released by the BLS.*

1. Bismarck, N.D.

September 2008 Unemployment Rate:  2.5

2. Casper, Wyo.

September 2008 Unemployment Rate:  2.5

3. Logan, Utah
September 2008 Unemployment Rate:  2.5

4. Sioux Falls, S.D.
September 2008 Unemployment Rate:  2.5

5. Morgantown, W. Va.

September 2008 Unemployment Rate:  2.6

6. Ames, Iowa
September 2008 Unemployment Rate:  2.7

7. Fargo, N.D.

September 2008 Unemployment Rate:  2.8

8. Iowa City, Iowa

September 2008 Unemployment Rate:  2.8

9. Rapid City, S.D.

September 2008 Unemployment Rate:  2.9

10. Lincoln, Neb.

September 2008 Unemployment Rate:  3.0

11. Provo-Orem, Utah

September 2008 Unemployment Rate:  3.0

12. Billings, Mont.

September 2008 Unemployment Rate:  3.1

13. Charleston, W. Va.

September 2008 Unemployment Rate:  3.2

14. Midland, Texas

September 2008 Unemployment Rate:  3.2

15. Salt Lake City, Utah

September 2008 Unemployment Rate:  3.2

16. Idaho Falls, Idaho

September 2008 Unemployment Rate:  3.3

17. Lafayette, La.

September 2008 Unemployment Rate:  3.3

18. Santa Fe, N.M.

September 2008 Unemployment Rate:  3.3

19. Charlottesville, Va.

September 2008 Unemployment Rate:  3.4

20. Farmington, N.M.

September 2008 Unemployment Rate:  3.4

21. Grand Forks, N.D.

September 2008 Unemployment Rate:  3.4

22. Lawton, Okla.

September 2008 Unemployment Rate:  3.4

23. Madison, Wisc.

September 2008 Unemployment Rate:  3.4

24. Fayetteville-Springdale-Rogers, Ark.-Mo.

September 2008 Unemployment Rate:  3.5

25. Harrisonburg, Va.

September 2008 Unemployment Rate:  3.5

26. Ogden-Clearfield, Utah

September 2008 Unemployment Rate:  3.5

27. Oklahoma City, Okla.

September 2008 Unemployment Rate:  3.5

28. Omaha-Council Bluffs, Neb.-Iowa

September 2008 Unemployment Rate:  3.5

29. Portsmouth, N.H.

September 2008 Unemployment Rate:  3.5

30. Sioux City, Iowa

September 2008 Unemployment Rate:  3.5

Jan 19, 2009 08:37 AM