Housing market in Fayetteville

[RAK]

From experience, even if you sell by owner, realtors will contact you. Most will try to get you to use them, but some will bring a real prospective client, in which case, you deal down their percentage. 3-4% is possible, despite what they might say. If the client likes your home, as happened, the realtor would be a fool not to take such a deal.

He wasn't.

[mzweig]

As the outside of the house I am redoing at 412 E. Lafayette nears completion, I can tell you all that there's been a tremendous interest from passersby for a tour. It just reinforces to me that if you use the right materials such as cedar shingles vs. vinyl or concrete siding, have wood windows and doors vs. metal or vinyl ones, pick out good lighting and not cheesy shiny brass, and pay attention to details overall you will end up with a house that sells in spite of a rather dismal residential market overall. We put a 4-foot square cupola/belfry-like structure with a steeple roof on the carriage house last week and have gotten many positive comments already on it. Now the carriage house is getting shingled to match the main house and the landscaping and driveway will be redone.

[strmchsr77]

As the outside of the house I am redoing at 412 E. Lafayette nears completion, I can tell you all that there's been a tremendous interest from passersby for a tour. It just reinforces to me that if you use the right materials such as cedar shingles vs. vinyl or concrete siding, have wood windows and doors vs. metal or vinyl ones, pick out good lighting and not cheesy shiny brass, and pay attention to details overall you will end up with a house that sells in spite of a rather dismal residential market overall. We put a 4-foot square cupola/belfry-like structure with a steeple roof on the carriage house last week and have gotten many positive comments already on it. Now the carriage house is getting shingled to match the main house and the landscaping and driveway will be redone.

You're redoing that one? We drive by there all the time and wonder how much money the owners have spend on buying and redoing that home. It must be a fortune.

[Aporkalypse]

I heard that Brandon Barber is going to build 200 affordable homes in Bentonville in the 120K range. I was a bit shocked to hear this, since he's only been doing large-scale projects for the rich.

I'm sure it has to do with profit margin. You make more on luxury homes but right now in NWA and Little Rock there a lot of these sitting around with only dust mites as occupants. Cheaper homes may have less of a profit margin but they aren't going to sit on the market for a year or two waiting for a buyer, so it's not a foolish investment.

There are a lot of builders in DFW that make fortunes on new homes around $100k in suburbs like Melissa, Anna, Royse City, and Forney that are far from the urban core. The key is to build them cheaply and build a lot of them for the builders. There are homes like that already in NWA, the problem is that kind of tract housing isn't really attractive. Still, you have to provide places for the lower middle class to live affordably if an area is going to thrive.

[mzweig]

You're redoing that one? We drive by there all the time and wonder how much money the owners have spend on buying and redoing that home. It must be a fortune.

That one is mine, yes. I am doing it strictly to resell, however. I have kept my budget under control for all the work being done. Total rehab of 3500 square foot house plus a 500 square foot apartment on more than a half acre lot.

[nickydou]

That one is mine, yes. I am doing it strictly to resell, however. I have kept my budget under control for all the work being done. Total rehab of 3500 square foot house plus a 500 square foot apartment on more than a half acre lot.

Let me know when you finish up on that home, I would like to see it. Not all Realtors are out to get you guys, but the way I am actually posting a few peoples home on my website that gets lots of traffic for free for them since the market is just not bringing what they need right now, just to get them buyers (they are trying FSBO) and then they will pay me 3% if I do bring a buyer, nothing if I dont. These are for past clients of mine. Anyway, I sold a historical church that had been renovated into a home on Lafayette a couple years back to a lady from Boston, it had been on the market for over a year when she bought it. Then she was relocated out of the area in less than a year; she did not do anything to it (except furnish it a bit more modern) and came out quite well and it sold rather quickly I agree with all of you about the historical area in Fayetteville - it will always hold its value. I did, however just purchase a brand new home in Bentonville and paid around $93/sq.ft - it appraised for about 50,000 more - I am pretty happy with it (But I am planning on staying in it a few years as well).

[mzweig]

Let me know when you finish up on that home, I would like to see it. Not all Realtors are out to get you guys, but the way I am actually posting a few peoples home on my website that gets lots of traffic for free for them since the market is just not bringing what they need right now, just to get them buyers (they are trying FSBO) and then they will pay me 3% if I do bring a buyer, nothing if I dont. These are for past clients of mine. Anyway, I sold a historical church that had been renovated into a home on Lafayette a couple years back to a lady from Boston, it had been on the market for over a year when she bought it. Then she was relocated out of the area in less than a year; she did not do anything to it (except furnish it a bit more modern) and came out quite well and it sold rather quickly I agree with all of you about the historical area in Fayetteville - it will always hold its value. I did, however just purchase a brand new home in Bentonville and paid around $93/sq.ft - it appraised for about 50,000 more - I am pretty happy with it (But I am planning on staying in it a few years as well).

You are welcome to come by any time. I am usually there during the week until about 3:30. We are still a couple months from completion, tho.

I work with Dale Carlton of Carlton Realty for all of my stuff. He will have the listing. I don't believe in going FSBO when you want to be on multi-list and when a good realtor is well worth their commission. I have done many transactions with Dale--he's extremely helpful. Plus, he's a real estate attorney.

M

[nickydou]

You are welcome to come by any time. I am usually there during the week until about 3:30. We are still a couple months from completion, tho.

I work with Dale Carlton of Carlton Realty for all of my stuff. He will have the listing. I don't believe in going FSBO when you want to be on multi-list and when a good realtor is well worth their commission. I have done many transactions with Dale--he's extremely helpful. Plus, he's a real estate attorney.

M

Great to know, I will watch for the listing. He is a great guy with lots of experience! My clients looking for the right home in that area are not in a hurry so I will probably wait till you are finished up. Thanks for the info!

[slyder1]

I was watching the local news here in Springfield and KY3 had a tidbit that said how Arkansas Housing market has slowed more than 20% from this time last year compared to the national average of 5%. I was wondering what some of everyone's thought's were?

[mzweig]

I was watching the local news here in Springfield and KY3 had a tidbit that said how Arkansas Housing market has slowed more than 20% from this time last year compared to the national average of 5%. I was wondering what some of everyone's thought's were?

My thoughts are that we have much more new subdivision housing than the typical city because we have grown so fast. As the market for new subdivision housing slows, our market is thusly (love that word) hurt worse than some other metro areas. That's my two cents, at least.

[Mith242]

I still think there's demand if there was some cheaper housing being built. I think they overbuilt on the $300,000 and up range. Although that's not to say things haven't slowed down. I don't think we could have stayed at the rate we had been growing and it had to slow down at some point.

[mcheiss]

I still think there's demand if there was some cheaper housing being built. I think they overbuilt on the $300,000 and up range. Although that's not to say things haven't slowed down. I don't think we could have stayed at the rate we had been growing and it had to slow down at some point.

Actually, homes over $250,000 are still selling very quickly. It's the one's in the 150,000-225,000 that aren't selling very well.

[masons_dad1]

Actually, homes over $250,000 are still selling very quickly. It's the one's in the 150,000-225,000 that aren't selling very well.

Yeah I read somewhere that the people who can afford the $150-225K homes could also afford the $250K homes so now noone who can afford those homes wants them. But fear not, realtors have gave their assurance that those homes would not be coming down in price.

[Mith242]

Actually, homes over $250,000 are still selling very quickly. It's the one's in the 150,000-225,000 that aren't selling very well.

Really? I don't think I heard about that. I thought I heard from the last Skyline Report that it was the more expensive homes.

[strmchsr77]

Really? I don't think I heard about that. I thought I heard from the last Skyline Report that it was the more expensive homes.

Believe me, nothing is selling very well right now. Even rentals are have more difficulty than normal filling up. I finally got a home in Fayetteville under contract and I was surprised but thrilled. Most of the other homes that I have for sale are just sitting there and not even being shown very much. Winter is the worst month for realtors. Spring usually is really good. I hope that is the case this year.

[mzweig]

Believe me, nothing is selling very well right now. Even rentals are have more difficulty than normal filling up. I finally got a home in Fayetteville under contract and I was surprised but thrilled. Most of the other homes that I have for sale are just sitting there and not even being shown very much. Winter is the worst month for realtors. Spring usually is really good. I hope that is the case this year.

I agree, Storm, tho I will say for the 47th time that the most resilient, best longer-term market is single family homes close in to the action in old neighborhoods. Here in Fayetteville that means walking distance to Dickson and the U of A. There is always a market for these houses, whether they are cheap or expensive or in the middle. The farther out you go, the newer you get, the more sprawly-subdivisiony it is, the harder it is going to be to sell, as long as interest rates are higher and the companies that do the hiring around here aren't growing. It's NOT just one price point or another, though I would guess (regardless of any survey data) that cheaper houses are still easier to sell 'cause everyone has to have somewhere to live.

The close-in houses that have not sold are for a variety of reasons. Most often, sellers just think they are worth too much. I looked at a 900 square foot house a couple months ago the seller wanted $219K for. She was trying to claim the basement was another 900+ square feet and therefore the house had 1800 square feet. It did not even have any off street parking, much less no garage (or driveway) and needed a total rehab. It was near Wilson Park tho not on the park. This is greed, my friends. The house was not worth a penny more than $150K, at best. If it doesn't sell, you cannot blame the market. I know of many of these situations.

There's another house for sale on Lafayette on the East side of College that has been for sale for a long time. Newe house, sorta looks old, they want $499K for it. Problem is they cut costs everywhere, from cheap windows to cheap siding, to lack of trim and lack of good landscaping. Add in cheap doors and bad colors and you get something that doesn't sell. I would bet the people who built it a couple years ago got in for $250 or $300K. If this doesn't sell, you cannot blame the market. It's the sellers trying to get rich on something they didn't do right and haven't lived in very long.

Well located, unique houses that are done right (and that means every single corner wasn't cut in every decision) will still sell quickly around here if priced properly. That's my two cents on the market!

[Thia]

Jeff Collins touched on the NWA housing market during the UA Quarterly Business Analysis on Tuesday morning. Here are some interesting housing numbers...

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The thorn in northwest Arkansas, especially Benton County, has been speculative residential real estate, Collins said.

In Washington County, there were 8,337 lots in 128 active subdivisions during the third quarter. The number of unoccupied homes rose 17.1 percent from to 652 from 557 at the same time last year, he said.

It's worse in Benton County. There were 12,454 lots in 153 active subdivisions. The number of unoccupied homes increased 229 percent, from 700 to 2,304 this year.

With these numbers, plus the additional 20,000 lots approved in the two counties, Collins said northwest Arkansas has a housing inventory that will last more than nine years.

Collins said it will be 12 to 18 months before the residential real estate market is back on solid ground. Continuing growth and raising the standard of living are critical to this, he said.

-----------------------

http://www.arkansasbusiness.com/article.as...8450&page=2

[masons_dad1]

It's worse in Benton County. There were 12,454 lots in 153 active subdivisions. The number of unoccupied homes increased 229 percent, from 700 to 2,304 this year.

With these numbers, plus the additional 20,000 lots approved in the two counties, Collins said northwest Arkansas has a housing inventory that will last more than nine years.

Collins said it will be 12 to 18 months before the residential real estate market is back on solid ground. Continuing growth and raising the standard of living are critical to this, he said.

With a housing inventory like that I doubt that many cheaper homes will be built with so many more expensive homes sitting empty. Realtors have stated that new home prices would not come down, but I don't see how these homes are going to sell at those prices. I know I'm not the only one in NWA who can't afford a home over $125K. My sister-in-law just bought a new 2BR, 1BA for $95,000 and there's quite a few small new homes going for under $100K in Benton County. I'm hoping by the time I'm ready to buy there will still be plenty of these homes left on the market. It was poor judgement for home builders to build so many expensive homes knowing the standard of living in NWA is still quite a bit lower than the national average.

[Aporkalypse]

This week's Ark Times cover story is about NWA's overbuilt housing market. Here's the link, it's in the top right corner:

Arkansas Times

[Mith242]

This week's Ark Times cover story is about NWA's overbuilt housing market. Here's the link, it's in the top right corner:

Arkansas Times

Interesting article, it even talks a bit about the Barber Group. It also mentions why so many developers went out and built so many expensive homes. Land prices rapidly increased and after developers paid so much for land they felt the only way to make a profit was to develop homes more on the expensive side to make up for it. Although I think if they had built homes with smaller lots that would have worked too, that way you get more homes in the same amount of land. That would also add in some nice density, but I guess you never know if those homes would be wanted as much by people. Although I think more developers would have an easier time seliing some of them if they had tried.

[mzweig]

Speaking of affordability, we just got a contract signed on a house to buy that is only a block or so off the square in Fayetteville for about $69 a foot. It is a wreck, has three feet of water in the basement, but definitely rebuildable. My daughter picked it up and is going to do a total rehab.

[Mith242]

Speaking of affordability, we just got a contract signed on a house to buy that is only a block or so off the square in Fayetteville for about $69 a foot. It is a wreck, has three feet of water in the basement, but definitely rebuildable. My daughter picked it up and is going to do a total rehab.

Great location certainly. Watch out or some developer might come along and try to buy it and a few other ones near it to put in some sort of development.

[mzweig]

Great location certainly. Watch out or some developer might come along and try to buy it and a few other ones near it to put in some sort of development.

I'm sure if the price is right, Rod, she'd be willing to sell it! We are "pro-good-development" in our family!

[Mith242]

Yeah, then again it might be hard to get several houses all together in that area as well.

[Thia]

Speaking of affordability, we just got a contract signed on a house to buy that is only a block or so off the square in Fayetteville for about $69 a foot. It is a wreck, has three feet of water in the basement, but definitely rebuildable. My daughter picked it up and is going to do a total rehab.

I'm happy to hear that another home in downtown Fayetteville is being rehabed. Once the older houses are gone, they are gone. Not every 1890-1930 home can be saved but I hope folks understand their value to Fayetteville's character and put them to good reuse rather than razing them or moving them all.