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July 2009, Mid Year Update

I wish I had a better report to make for you, but here goes. At mid year, it seems the residential real estate market is basically steady volume at flat prices, relative to a year ago. Foreclosure and repossession activity has increased compared to the past few years, as noted in the popular press. This helps increase unit sales, but depresses pricing power.

Some commercial leasing activity is taking place for those needing to expand their business operations. Land and commercial building sales are just not happening, even though new commercial properties continue to accrue on the market with hopes that buyers will soon return to pick them up. The spread between what buyers are willing to pay and what sellers are willing to take is just too large. Bankers talk a good game but seem to want to keep their loans to themselves, making it difficult for those who have the desire but not the capacity to make real estate purchases.

The general public psyche seems to be expressing itself in the stock market, and that in turn mirrors itself in the real estate market. While in past recessionary economies the stock market and real estate market would be expected to go in opposing directions, they are now running in tandem, and have been so for the recent past.

This fall and winter may well be a 'make or break' season for a lot of folks. I hope that you are one of the 'makers!' Keep your powder dry; we still have more to go through before clear sailing can be declared. May God Bless you and provide for you for the balance of 2009.

-- Jeff

December 2008

Well, it's time for my 2nd annual Christmas letter and outlook for 2009. After reviewing last year's letter, I concluded that my hopefulness for a market up-trend for 2008 sounded a bit rosy compared to the past year's actual events.
Rather than eat crow over the 2008 letter, however, I think I will just throw it out and start over with new prognostications for 2009.

For over 2 years I have had a running bet with another agent, here at Lindsey, as to when the local real estate bottom (in price and number of sales) would occur. He maintained that November of 2008 would be the bottom, and I projected that March of 2009 would be the market's lowest point. I guess I still have to stick with that date.

There's been a flight to safety into paper (money) that is going to turn sour as people realize that these "dollars" will go back out of favor, leaving real estate as the most obvious choice to get "dollars" exchanged for tangible goods. Lord knows we are being flooded with bailouts and handouts from the dollar printers in Washington. That "created" money is going to find a "home" eventually in tangible goods. Dollar down = tangibles up.

I believe that soon real property in the hand will be thought of much more highly than paper promises of the future. I'm hoping the bottom to be here in March and that a slow upward progression in the market will begin soon thereafter.

Continue to look up. Things don't stay bad for very long, local history has proven this as our area has traditionally been one of growth in both industry and population. We live in a blessed part of the country, isolated from many disruptions that the national economy/government throws our way.

Hang in there. Opportunities will arise. Be clear of mind and stout in heart for the challenges of the days ahead. May the Good Lord keep and prosper you in 2009.

-- Jeff

December 2007

I wanted to share my thoughts regarding the current real estate situation, as I am sure that you have concerns regarding your own holdings and hopeful sales opportunities.

I expect the local real estate market to continue on its slow trend with an up-tick at the end of this year. National forecasters, on a nationwide basis, project a downward trend for 2-3 years, but I don't expect NWA to follow that trend that severly or for that long a period of time.

Our area continues to be looked at in a favorable light by those in the country who are looking for a great place to live. NWA has been evaluated during the last few years by entities such as CNN, Forbes, Sperling's Best Places, MSN, Kiplinger's Finance Magazine, Business Development outlook, The Milken Institute, AARP, Inc. Magazine, and the Washington Post (sited on moving.about.com and Fayetteville.com) and given high rankings in things such as best place to live to reinvent yourself, clean air, top college towns, best place to do business, and best place to live and work.

Low cost of living, affordable housing, and steady job growth were sited among the reasons for people to move to our area. Couple that with the natural beauty of the Ozarks, temperate climate, and the fact that there is a continued influx of Fortune 500 companies to this area, and it's plain to see that there's every indication that our population will continue to increase with those who are pursuing the Great American Dream.

NWA exemplifies the entrepreneur's gold mine, even with the current slow down in real estate sales. The word is out! With recent national news media recognition, NWA is fast becoming known as one of the best places in this country to live and work, and to make your business dreams come true. Soon both residential and commercial real estate will again reflect this phenomenon. I hope that 2008 will bring you success in all that you set your hand to do.
Blessings to you in this new year. Be encouraged and keep the faith.

-- Jeff

Northwest Arkansas Commercial Real Estate

What's New In Real Estate Market Trends