It looks like things may be picking up for the Fayetteville housing market. As spring seems to have come early to NW Arkansas, the market has picked up.
February home sales this year were up slightly compared to last year--58 homes compared to 55 last year in February. It appears now that things are approaching "normal" again, but economists are saying it will be the so-called "new normal" rather than the unsustainable rise in prices of 5 years ago at the peak of the market.
Fayetteville is now approaching a balanced market in many price ranges, especially on less expensive homes. Realtors usually consider 6 months supply to be a balanced market and for homes under $200,000 this seems to be the case based on February MLS data. Price ranges above that amount still have a buyer's market. Nevertheless, even with building permits still down, inventory IS being absorbed, a good sign and some new homes are being constructed.
Keeping in mind that 2005 and 2006 were historically record-breaking years, the market here is not all "doom and gloom." There are bargains to be had, and for those who wish to purchase a home, it might be a really good time to do so, especially since interest rates are still at record low levels.
Under $100,000, there is now a 5.94-month supply of homes on the market--a balanced market. In the last year according to the Multiple Listing Service database, 105 homes between $75,000 and $100,000 were sold, an average of 8.75 homes per month. Now there are 52 homes on the market. Many of the homes in this price range are "fixer-uppers" or mobile homes in the country, as well as small apartments or condos for the university market and foreclosures. There was a time just a few years ago when a single-family home in this price range sold in a matter of days or weeks, but this is no longer the case. Three homes in this price range sold in February this year, compared with 8 last year in February.
Between $100,000 and $150,000 currently there is a 5.65-month supply of homes of all ages from new to historical homes. 255 homes were sold in this price range in the last year, an average of 21.25 per month. In February this year, 19 homes were sold compared with 17 in February of last year.
Now there are 120 houses on the market in that price range, of which a large number are condo apartments for the university market. The main activity for new single family homes in this price range are in the newest phase of Cobblestone Crossing near Holcomb Elementary School, as well as Walnut Crossing off Hwy 62 on the way to Farmington. Also to be considered is Blueberry Meadows off Hwy 16E (toward Elkins), as well as some small condos NE of town off Joyce Street (east of Hwy 265) called the Joyce Street Cottages. Condos in the Sunbridge Villas complex in north-central Fayetteville are now also in this price range.
Between $150,000 and $200,000 activity 19 homes sold in February compared with 15 in February last year. In this price range, there are currently 115 homes on the market, a 6-month supply, and last year 229 homes were sold.
In the $200-$300K price range activity February sales indicate a mild buyer's market, continuing from previous months. Sales were down only slightly compared to last year--8 compared to 11 last year. In this price range there are 170 homes currently on the market, a 9.67-month supply. The new homes are in a variety of subdivisions, giving buyers in this price range more choices. A few of the smaller apartments in the Legacy Building and Underwood Plaza (now called "The Dickson") downtown are available in this price range. For single family homes, there is a new phase of Stonebridge Meadows under construction and several new subdivisions west of I-540--Oakbrooke, Salem Heights and Rupple Row off Wedington, as well as in Lakewood and Woodbury (NE Fayetteville near the Fayetteville Athletic Club). A couple of other subdivisions of new homes are Bel Claire (north of Sam's on Hwy 112), a new phase of Legacy Point, called Legacy Heights, as well as a couple of new subdivisions on the east side of town: Crestmont (east of Savannah) and Horsebend Estates (adjacent to Overton Park). There is also building going on in this price range in Copper Creek in NE Fayetteville, and in Waterford Estates east of Fayetteville, which formerly had a few larger, more expensive homes.
On the high end, there is still somewhat of a glut of homes, but inventory is being absorbed with little new construction occurring. Between $300-$400K 6 homes were sold last month, compared with 3 last year in February. Thus in the $300,000-$400,000 price range, there is only a 12-month supply. It appears that since few homes are being built in that price range, the existing inventory is largely being absorbed. Currently there are 80 homes on the market in this price range, of which only 23 are new and newer homes.
On homes over $400,000 there is a still a 29-month supply, but 3 homes sold in this price range in February this year, compared to 2 in February a year ago. In terms of absolute numbers there are 145 homes over $400,000 on the market, of which 51 are under 5 years old. Since about 5-10 homes per month are normally sold in the $300,000-$400,000 price range and about 4-8 homes per month over $400,000, this means that sellers can still expect their high-dollar homes to be on the market for awhile unless they are priced competitively. In addition to large estate homes on small acreage, homes in this price range also include new condos in central Fayetteville on Dickson, in the Dickson and the Legacy Building.
Another promising area on the high end is the phenomenal new Clear Creek golf course community in Johnson, between Fayetteville & Springdale. At the moment some really beautiful homes are available there, if buyers have over $800K to spend. And in Fayetteville generally, high end homes have come down significantly in price for the amenities offered.
Traditionally the nearby small towns of Farmington and Elkins have provided lower-cost homes than were available in Fayetteville. However, now Farmington is just as expensive as Fayetteville, and homes in Elkins which are closer to Fayetteville are rising in price. On a positive note, other communities are beginning to become options for affordable housing, namely West Fork and Greenland, south of Fayetteville. Prairie Grove, a charming small town west of Farmington about 20 minutes from Fayetteville, is experiencing some new development and presents possibilities for moderately priced houses.
ZIP Codes: 72701, 72703, 72704 Location Characteristics: Fayetteville is a medium-sized city nestled in the Ozarks. Home of the University of Arkansas, it offers 4 seasons with mild winters, a culturally and intellectually diverse population, reasonable cost of living, and a low unemployment rate. Many publications have featured the area for its quality of life and economic vitality.
About Judy Luna:
Judy is one of only about 30 e-Pro certified agents in Northwest Arkansas and one of only 200 Cyberstars (TM), a select group of realtors nationwide who effectively use technology and the internet in their real estate business. As such she welcomes buyers or sellers who wish to fully utilize the internet and email to make the homebuying/selling process more efficient and less time-consuming. She can help sift through the multitude of informational sites and focus on the important issues in real estate transactions. As a Certified Residential Specialist (CRS) she is an experienced agent in all aspects of residential real estate, and as an Accredited Buyer Representative (ABR), she also has additional training designed to guide buyers through the process of purchasing a home.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
