It looks like things may be picking up for the Fayetteville housing market. It's a bit unusual during the holiday season, but it seems that consumer confidence may be a key factor in helping buyers to finally get off the fence. Also interest rates remain at record lows, and inventory is high. A great time to buy.
November home sales this year were down only slightly compared to last year--62 homes compared to 65 last year in November. 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.
It is now a buyer's market in all price ranges, but homes with higher price tags have a more severe buyer's market than those at lower prices. 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 extremely low, under 4% in the past week or so, at record low levels.
Under $100,000, there is now a 6.55-month supply of homes on the market--almost a balanced market. In the last year according to the Multiple Listing Service database, 110 homes between $75,000 and $100,000 were sold, an average of 9.17 homes per month. Now there are 60 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. Six homes in this price range sold in November this year, the same as last year in November.
Between $100,000 and $150,000 currently there is a 6.9-month supply of homes of all ages from new to historical homes. Realtors usually consider a 6-month supply a "balanced" market; less than that is a seller's market and more than that is a buyer's market. Thus in this price range the Fayetteville market is approaching a balanced market, and has been for many months. In absolute numbers, 249 homes were sold in this price range in the last year, an average of 20.75 per month. In November this year, 25 homes were sold compared with 14 in November of last year.
Now there are 143 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 was down compared with last year--11 homes sold in November of 2011 and 20 in November of 2010. In this price range, there are currently 131 homes on the market, just over a 7-month supply, and last year 219 homes were sold.
In the $200-$300K price range activity this November was down only slightly compared to last year--11 compared to 13 last year. In this price range there are 181 homes currently on the market, a 10.3-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 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.
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 only 3 homes were sold last month, compared with 7 last year in November. Thus in the $300,000-$400,000 price range, there is only a 12.5-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 82 homes on the market in this price range, of which 31 are new and newer homes.
On homes over $400,000 November was an excellent month. There is a still a over a 28-month supply, but 6 homes sold in this price range in November this year, compared to 5 in November a year ago. In terms of absolute numbers there are 144 homes over $400,000 on the market, of which 62 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 Underwood Building 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.
