Real Estate Information Archive

 .

Blog

Displaying blog entries 1-10 of 78

RD Loans

by David Tyler Mills

Luckily for Northwest Arkansas, banks offer a financial loan option known as Rural Development Loans (RD).  In many areas, this loan allows you to have 100% financing (meaning NO MONEY DOWN), and sometimes it allows you to finance your closing costs.  Give Kelly Franks a phone call at 479-387-4387 to find out if you qualify for this product.  It only takes 15 minutes!


The 2011 Real Estate Market Activity for Northwest Arkansas

by David Tyler Mills

Everybody is hearing mixed messages on the current real estate market and is wondering what the outlook of this year will bring.  If you’re listening to the news on a national level, you will hear a variety of coverage of how excellent or terrible the market looks.  Right now, the market is shaky- good in places, bad in others- so it’s vital to watch the market at a local area.  Do not be swayed by the national opinion of the real estate market because houses are selling here in northwest Arkansas. 

Included in this report is data taken from our local MLS database from the 12th of December of 2010 and data from the 12th of December of 2011.  From the comparison of these two snapshots, an assessment of the yearly change between the listings, the number of months supply, and new construction while be provided for the cities of Fayetteville, Farmington, Springdale, Lowell, Rogers, Bentonville, and Bella Vista.  Also within this report, significant changes in certain pricing categories will be supplied that showed substantial influence in each city.    

What is being measure?

Listings – a change between 2010’s and 2011’s houses on the market, also known as inventory, is provided.  A positive change usually indicates that inventory is increasing, and prices are decreasing.  On the other hand, a negative change usually indicates that inventory is decreasing and prices are increasing.  Changes in inventory within a certain price category have the greatest effect on price categories that are immediately less than or immediately greater than that category.  For example, a change in inventory in the pricing category of $100-149 will have a greater impact on the change in price and inventory within the pricing categories of $0-99 and $150-199.  Therefore, price categories such as $500-599 will have insignificant effect by these changes initially. 

Months Supply – a change between 2010’s and 2011’s number of months a house will remain on the market is given.  A positive change indicates an increase of time (in months) a house will remain on the market before it will sell.  A negative change indicates a decrease of time.  It is best to monitor specific price categories besides the overall average of each city to determine which housing prices are in high demand.  The most significant changes with each category have been provided.  Favorable significant changes have been highlighted in green; whereas, unfavorable changes are in red.

New Construction - a change between 2010’s and 2011’s number of new constructions have been included.  An increase in new construction is usually a reliable indicator of local economic growth, since many industries are involved during new construction.  A negative growth is to be expected in a recovering economy.

 

Fayetteville

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

849

670

12.7

12

95

82

 

 

Change

-179

-0.7

-13

 

 

% Change

21%

6%

14%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$100-149

$300-349

$350-399

$400-449

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

13.8

7.1

12.3

63

30

14.4

21

84

Change

-6.7

50.7

-15.6

63

 



 

 

 

 

 

 

 

Significant Changes

 

 

Price Category

$600-699

$700-799

$800-899

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

Months Supply

12

31.5

12

39

84

9

 

 

Change

19.5

27

-75

 

 

 

Fayetteville barely improved its months supply overall.  Fortunately, months supply for $100-149 and $350-399 were almost cut in half.  For houses priced at $100-149, houses will now sell within seven months.  In 2010, it would have taken almost 14 months!  Houses priced at $800-899 did have an impressive difference of about six years.  Houses priced at $400-449 had a large increase of 63 months.  A strategic seller would drop their price within the $350-399 category.

Key Takeaways

  • Greatest change: $400-499 increased 63 months.
  • Fayetteville has the lowest months supply difference (-0.7).
  • Fayetteville has the lowest months supply percentage change (6%).
  • Fayetteville has the lowest percentage change decrease in new construction (14%).

 

Farmington

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

100

53

20

8.8

6

2

 

 

Change

-47

-11.2

-4

 

 

% Change

47%

56%

67%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$100-149

$150-199

$200-249

$250-299

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

11.4

7.5

24

6

19.5

9

24

5

Change

-3.9

-18

-10.5

-19

 

Farmington did phenomenal this year.  Overall the month supply dropped 56%.  Houses that took 20 months to sell now only take about nine.  Hot price categories included $100-149, $150-199, $200-249, and $250-299.  Almost all these categories took over a year or two to sell last year, now only take a few months!

Key Takeaways

  • Greatest change: $250-299 decreased 19 months.
  • All significant changes decreased in months supply.
  • Farmington has the largest percentage change in listings (47%).
  • Farmington has the largest months supply difference (-11.2).
  • Farmington has the largest months supply percentage change (56%).
  • Farmington has the lowest decrease in new construction (-4).
  • Farmington has the largest percentage change decrease in new construction (67%).

 

Springdale

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

763

493

11.6

6.6

55

20

 

 

Change

-270

-5

-35

 

 

% Change

35%

43%

64%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$0-99

$100-149

$250-299

$300-349

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

8.5

3.4

13.8

7.1

16.7

24.6

51

84

Change

-5.1

-6.7

7.9

33

 

 

 

 

 

 

 

 

 

 

Significant Changes

 

 

Price Category

$400-449

$450-499

$550-599

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

Months Supply

36

24

51

84

84

9

 

 

Change

-12

33

-75

 

 

 

Considering how Springdale is the second largest city in Northwest Arkansas, a 35% change in listings is prominent.  The majority of this change came from houses priced at $0-99 with a five month supply change and $100-149 with a seven month supply change. High-end priced homes, such as $250-299 and $300-349, didn’t favor as well this year with an increase of an eight and a 33 month supply respectively.

Key Takeaways

  • Greatest change: $500-599 decreased 75 months.
  • Springdale has the largest change in listings (-270).
  • Springdale has the largest decrease in new construction (-35).

 

Lowell

 

Overlook

 

Listings

Months Supply

New Construction

Year

2010

2011

2010

2011

2010

2011

 

106

76

8.4

7.1

16

17

Change

-30

-1.3

1

% Change

28%

15%

6%

 

 

 

 

 

 

 

 

Significant Changes

 

 

 

 

Price Category

$200-249

 

 

 

 

Year

2010

2011

 

 

 

 

Months Supply

12.8

84

 

 

 

 

Change

71.2

 

 

 

 

 

Lowell’s real estate market showed little activity this year.  Listings dropped with a 28% change, but total months supply barely showed any significant signs of change.  Most notably, the price category of $200-249 had a significant increase of 71.2 month supply.

Key Takeaways

  • Lowell is one of two cities that increased in new construction.
  • Lowell has the largest percentage change increase in new construction (6%).
  • Lowell has the lowest change of listings (-30).

 

Rogers

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

867

620

11.8

7.8

87

55

 

 

Change

-247

-4

-32

 

 

% Change

28%

34%

37%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$100-149

$200-249

$250-299

$400-449

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

14

6.6

16.3

8.4

11.6

22.9

15.8

4.7

Change

-7.4

-7.9

11.3

-11.1

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$450-499

$550-599

$600-699

$700-799

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

25.5

10

13.5

84

45

16.5

84

14

Change

-15.5

70.5

-28.5

-70

 

 

 

 

 

 

 

 

 

 

Significant Changes

 

 

 

 

Price Category

$800-899

$1,000+

 

 

 

 

Year

2010

2011

2010

2011

 

 

 

 

Months Supply

45

15

18

36

 

 

 

 

Change

-30

18

 

 

 

 

 

Unlike Lowell, Rogers experienced ample real estate activity with the overall months supply decreasing 34%.  All significant price categories that had a decrease in months supply range from seven months to roughly six years.  Price categories such as $250-299, $550-599, and $1,000+ increased from 11.2 to 70.5 month supply.

Key Takeaways

  • Greatest change: $550-559 increased 70.5 months.

 

Bentonville

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

503

298

12.2

6.2

111

117

 

 

Change

-205

-6

6

 

 

% Change

41%

49%

5%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$0-99

$100-149

$150-199

$200-249

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

9

4

11.1

6.2

13.3

5.5

13.1

4.7

Change

-5

-4.9

-7.8

-8.4

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$350-399

$450-499

$500-549

$550-599

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

57

6.8

19.5

6.6

27

8

3

9

Change

-50.2

-12.9

-19

6

 

 

 

 

 

 

 

 

 

 

Significant Changes

 

 

Price Category

$600-699

$800-999

$1,000+

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

Months Supply

10.5

6

4

12

21

84

 

 

Change

-4.5

8

63

 

 

 

Much like Rogers, the real estate market was very active in Bentonville with a greater overall months supply change of 49%.  Bentonville shows favorable activity across the board amongst each price category, ranging from five months to four years!  The only significant downfalls were in the price categories of $550-599, $800-999, and $1,000+, ranging from six months to five years

Key Takeaways

  • Greatest change: $1,000+ increased 63 months.
  • Bentonville was one of two cities that increased in new construction.
  • Bentonville has the largest increase in new construction (6).

 

Bella Vista

 

Overlook

 

 

 

Listings

Months Supply

New Construction

 

 

Year

2010

2011

2010

2011

2010

2011

 

 

 

634

544

13.8

9.6

19

7

 

 

Change

-90

-4.2

-12

 

 

% Change

14%

30%

63%

 

 

 

 

 

 

 

 

 

 

 

 

Significant Changes

Price Category

$0-99

$100-149

$300-349

$350-399

Year

2010

2011

2010

2011

2010

2011

2010

2011

Months Supply

9.8

6

14.8

8.4

18

6.8

13.5

84

Change

-3.8

-6.4

-11.2

70.5

 

 

 

 

 

 

 

 

 

 

Significant Changes

 

 

 

 

Price Category

$400-449

$550-599

 

 

 

 

Year

2010

2011

2010

2011

 

 

 

 

Months Supply

24

84

84

9

 

 

 

 

Change

60

-75

 

 

 

 

 

Bella Vista also did well this year with an overall months supply decrease of 30%.  Even though price categories such as $350-399 and $400-449 took a hit, $550-599 has the greatest decrease of about 6 years of months supplyLower price categories did exceptionally well with decreases ranging from about 4 months to almost a year.

Key Takeaways

  • Greatest change: $550-599 decreased 75 months.
  • Bella Vista has the lowest percentage change in listings (14%).

Foreclosure Fears Foster True Grief

by David Tyler Mills

Reports of foreclosures by the millions have been in the news so much over the past few years that to some, it might seem like the new normal. 

But as real estate professionals who are in the trenches with financially stressed homeowners every day, it never for a second feels like “business-as-usual.”

The prospect of losing one’s home is right up there among the major sources of grief, and often, it goes hand in hand with other tragic setbacks such as the loss of a job, a divorce, death of a loved one, mounting medical bills, or skyrocketing mortgage payments.

Unfortunately, the first stage of grief is denial, and that’s even more the case when the threat of foreclosure is looming. No one wants to talk about or admit financial troubles—even when millions of others have found themselves in a similar spot.  It’s completely understandable, but for homeowners who are behind on mortgage payments, decisive action is often the most critical step toward ensuring the best possible solution.

As real estate professionals who have sought out the Certified Distressed Property Expert (CDPE) designation, we help homeowners to deal with every aspect of the grief and uncertainty that accompanies a mortgage which is no longer manageable. In the process, we help them to get on a path of financial solvency.

If you or someone you care about would like to change the course of a life that’s facing foreclosure, we get it, and we can help.

Contact us today!

What to Expect from the Revised HARP

by David Tyler Mills

Revisions to the Home Affordable Refinance Program (HARP) announced last month, are by no means a game changer. HARP 2.0, as the media has started to refer to it, has some merit, but its scope is very limited and it will have little or no impact on foreclosures or the estimated 6.4 million homeowners nationwide who are behind on their mortgage payments. The new HARP essentially expands the net of underwater borrowers who were eligible to refinance under the original version.

HARP was created in 2009 to enable borrowers whose loans were backed by Fannie Mae, Freddie Mac or the FHA; who were current on their mortgage; and who owed up to 125 percent of the current value of their homes to refinance.

Under the new plan, borrowers can refinance no matter how far underwater they are. Banks will only have to verify that they have made their last six payments, haven't missed more than one payment over the past year, and have a job or another source of regular income.

While the new HARP won't help homeowners who are behind on their payments and at risk for foreclosure, it will be a welcome relief for homeowners who have been caught in the Catch-22 of not being able to refinance because they owe more on their mortgage than their home is worth, but at the same time, don't qualify for a short sale or a loan mod because they are current on their payments and still have income and assets.

*Information collected from CDPE's "The Distressed Property Report" for November 2011

Need Money for Improvements for a Fixer-upper? There's a Loan for That.

by David Tyler Mills

We meet a lot of customers who desire a fixer-upper but don’t have the cash to repair, replace, or improve their dream home.  Most of these customers are aware of an FHA loan, which only covers the price of the home, but what they may not know is the other types of FHA loans.  One of these types of FHA loans allows you to borrow money that you can use towards improvements.

Introducing the FHA 203K!  This loan allows you to borrow up to $35,000 for repairs, replacements, upgrades, remodeling, and enhancing.  Below is a list of eligible and ineligible improvements as well as a bid/proposal requirement checklist:

Streamlined 203K “Eligible” Improvements

Below are the types of improvements that are allowed in the streamlined 203K program.

  • Repair/replacement of roofs, gutters, and downspouts
  • Repair/replacement/upgrades of existing HVAC systems
  • Repair/replacement/upgrades of plumbing and electrical systems
  • Repair/replacement of existing flooring
  • Minor remodeling, such as kitchens and bathrooms, which does not involve structural repairs
  • Weatherization: including storm windows and doors, insulation, weather stripping, etc.
  • Purchase and installation of appliances, including freestanding ranges, refrigerators, washers/dryers, dishwashers, and microwave ovens.
  • Accessibility improvements for persons with disabilities
  • Painting, both exterior and interior
  • Repair/replace/add exterior decks, patios, and porches
  • Basement finishing and remodeling, which does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding
  • Septic system and/or well repair or replacement
  • Lead-based paint stabilization or abatement of lead-based paint hazards

Steamlined 203K “Ineligible” Improvements

Below are the types of improvements that are not allowed in the Streamlined 203K program.

  • Major rehabilitation or major remodeling such as the relocation of a load-bearing wall.
  • New construction (including room additions)
  • Repair of structure damage
  • Repairs requiring detailed drawings of architectural exhibits
  • Landscaping or similar site amenity improvements
  • Any repair or improvement requiring a work schedule longer than six months
  • Rehabilitation activities that require more than two payments per specialized contractor
  • Required repairs arising from the appraisal that do not appear on the list of eligible repairs
  • Walkways or driveways

Bid/Proposal Requirement Checklist

  • Must reflect date of bid/proposal
  • Must reflect borrowers name
  • Must reflect property address
  • Break out specific costs for materials, labor, permits, etc.  (Lender needs to understand what the reflected items are)
  • No “structural items” reflected
  • Indicate the estimated completion date (must be within 6 months)
  • Licensed Contractor must sign and date
  • Borrower must sign and date
  • Copy of Contractors license, references, and any other state licensing requirements
  • Copy of permit(s) for any work that requires a permit (if you are not sure, ask your contractor)
  • Homeowner/Contractor Agreement to be completed for each bid/proposal and must be signed and dated by the licensed Contractor and the Borrower (copy included in package.)
  • Total sum of bid/proposals and closing costs cannot exceed $35,000

*PLEASE NOTE…ALL REMODELING WORK MUST BE COMPLETED BY A LICENSED CONTRACTOR.  BORROWERS MAY NOT PERFORM REMODELING WORK!!!

*The only work that can be performed by the borrower is painting or installations of some appliances.  Please check with our office to determine if your project can qualify for SELF-HELP.

Is NOW a good time to buy?

by David Tyler Mills

The consistent volatility from the U.S. economy causes concerns for homebuyers across the nation.  However, there have been a few important variables they have stabilized in the real estate market, which would be beneficial for investors or homebuyers to know.  While it is not certain what’s to happen next with our economy, here are some suggestions that may be useful when deciding if it is a good time to buy.

  • According to Zillow’s Real Estate Market Report, price reductions have fell at a slower rate, closing in at 4%, between the first and second quarter of this year.  Closing in at only 0.4%, this decline in price reductions is the smallest change in more than four years.

 

  • At 4%, interest rates are at historically low levels for the near future, which supports more affordable home purchases. 

 

  • According to Trulia’s recent rent vs. Buy Index, buying a home at a median list price was actually cheaper than renting the median two-bedroom apartment unit in 74% of the major U.S. cities.

 

  • With rental prices rising, buying is an appealing and logical option for homebuyers with enough money saved for a down payment.

Looking at the big picture, such as monitoring price reductions and consumer behavior within major cities, helps determine the trickle effect it will have on our local communities.  Regardless, only a local real estate agent will have true understanding of the value of buying a home in your area.  The light looks green, so give us a call at McNaughton Real Estate to help you decide if now is a good time to buy a home in your desired neighborhood.

Golfing and Shopping in NWA

by David Tyler Mills

Ask anybody who has been through it.  Shopping for a home consumes a lot of time when you try to please everyone in the household.  Shopping for me in general, rather it’s for clothes or groceries, is too much of a hassle for me.  I blame it on the Y chromosome.  I see what I like, go to the store, grab it, and leave.  Show me something I like; I’ll buy it.  Done. 

Ladies are a little bit different.  I can skip my exercise for the day if I plan on going to the mall with a girl.  I literary put on a jogging suit, do my stretches, and fill my water bottle before facing this marathon women like to call “shopping.”  Even then, you’ll find me slumping in a chair in Warren’s Shoes trying to catch a second wind.  

“Where is this going, Tyler?”  Ladies, do you want to shorten the decision making process with your husband?  Tell him there’s a golf course near.  Boom!  He’s sold.  You’re welcome.

Here is a list of all the golf courses in Northwest Arkansas provided by Northwest Arkansas Now.  Check it out here!   If you see a home in Bella Vista, Pea Ridge, Rogers, Lowell, Springdale, Johnson, Fayetteville, Siloam Springs, or Farmington with a golf course near, then give us a call to set an appointment!

“Tyler!  You have no idea what you’re talking about!  As the man in the household, I decide where we live!”  Well, calm down sir.  Maybe this will help put your wife at ease.  Here are some of the biggest shopping malls in Northwest Arkansas

Searching for that new home is an exciting, but when your efforts aren’t fruitful and time is wasted, then it can be stressful.  That’s why we urge you to utilize our search tool to help save you time.  Happy house hunting!

<iframe src="http://www.AllNWAHomes.com/quicksearch/?width=200&utm_source=QUICKSEARCH&utm_campaign=Blog&utm_medium=referral" frameborder="0" scrolling="no" style="border: none; height: 450px; width:200"></iframe>

2011 School Performance in NWA

by David Tyler Mils

Who are we kidding?  You and I both know the number of bedrooms and bathrooms entice buyers into purchasing a new home.  It doesn’t hurt to have a pool either.  Regardless, many parents are curious in the school districts that Northwest Arkansas offers.  Some parents prefer schools that are high in demand, the most talked about ones; however, others prefer smaller schools, which usually indicate a better teacher-student ratio.  A useful indicator of school size and measurement of demand for a public school can be determined by the enrollment size.  Then again, some parents may only care about the educational statistics for each school (i.e. literacy rate, average ACT scores, etc.)  Northwest Arkansas Now released the 2011 enrollment for public schools in Bentonville, Fayetteville, Rogers, and Springdale.  In addition, the Northwest Arkansas school report cards were included.  Check out the links below to help you decide which school you would like your children to attend.  

Enrollment for Public Schools

Northwest Arkansas School Report Cards

White House wants Fannie, Freddie to go

by Elizabeth Rodgers

Outcome of debate over mortgage giants will affect who can afford a home.

More than three years after the housing market collapsed, Congress and the White House have made virtually no headway cleaning up the financial quagmire left behind by the two government-sponsored mortgage giants, Fannie Mae and Freddie Mac.  For more information, click here.

Saving Money

by Wanda Anderson

Master the thirty day rule. Whenever you’re considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item. Quite often, you’ll find that the urge to buy has passed and you’ll have saved yourself some money by simply waiting. If you want, you can even keep a “thirty day list” where you write down the item and the day you’ll reconsider it, but I prefer just to keep this one in my head – that way, I often just forget about the unimportant things.

Give up expensive habits, like cigarettes, alcohol, and drugs. Those habits cause money to flow away from you with nothing in return. Call up your fortitude and work hard to kick the habits and you’ll find that money staying in your pocket instead of burning up and floating away.

Invite friends over instead of going out. Almost every activity at home is less expensive than going out. Invite some friends over and have a cookout or a potluck meal, then play some cards and have a few drinks. Everyone will have fun, the cost will be low, and the others will likely reciprocate not long afterwards.

Call your credit card company and ask for a rate reduction. Take any of your credit cards that are carrying a balance, flip them over, and call the number on the back. Tell them that you want an interest rate reduction or you’ll take your business elsewhere. If the first person you talk to won’t do it, ask to talk to a supervisor. If you have a $5,000 balance, even a 3% rate reduction saves you $150 a year.

Drink more water. Not only does drinking plenty of water have great health benefits, water drinking has financial benefits, too. Drink a big glass of water before each meal, and not only will you digest it better, you won’t eat as much, saving on the ol’ food bill. You’ll also find yourself feeling a bit better as you begin to get adequately hydrated (most Americans are perpetually somewhat dehydrated).

When shopping for standard items (clothes, sports equipment, older games, etc.), start by shopping used. Quite often, you can find the exact item you want with a bit of clever shopping at used equipment stores, used game stores, consignment shops, and so on. Just make these shops a part of your normal routine – go there first when looking for potential items and you will save money.

Give a gift of a service instead of an item. For new parents, give an evening of babysitting as a gift. If you know pet owners, offer to take care of their pets when they travel. Offer up some lawn care as a gift to a new homeowner. These are always spectacular gifts for anyone – I know that, as a parent of a toddler and an infant, I love receiving a babysitting gift, probably more than any “stuff” I might receive.

 

Master the ten second rule. Whenever you pick up an item in order to add it to your cart or to take it to the checkout, stop for ten seconds and ask yourself why you’re buying it and whether you actually need it or not. If you can’t find a good answer, put the item back. This keeps me from making impulse buys on a regular basis.

Displaying blog entries 1-10 of 78

Contact Information

Photo of Don McNaughton Real Estate
Don McNaughton
McNaughton Real Estate
4299 W. Persimmon
Fayetteville AR 72704
479-442-9099
Fax: 479-442-0948
       

google111caefcd16f7503.html