OTL-NWA Real Estate

Aloha,

I was searching Zillow of houses for sale in NWA and was astounded by the prices. Much greater than expected. Love to hear from y’all who are in the know. Is NWA experiencing a housing bubble? Are there that many high paying jobs in NWA for people to afford the current housing prices? Understand the attraction to live in NWA. Perhaps its demand greater than supply resulting in higher housing prices. Also sadly noticed minimal non-private quality golf courses compared to Florida and Hawaii.

GHG!

We recently sold and bought a home in Fayetteville. It seemed to me that the housing inventory is quite a bit lower than the demand, which is driving up the cost of homes.

Bingo!

I recently bought a house in NWA, and it appears to be an up trending market. As to jobs to pay for these houses, I guess their lenders think so! Lots of corporate and vendor jobs in NWA, and the university pays well, for the most part. Most booms have a bust, eventually, how hard, too early to tell. As Matt said, there’s a range from $200-275k that will have multiple offers on them. I was looking for a second home, and had to up my price range to find location and house that we wanted.

Seven years ago you could buy a new three-bedroom starter home in Fayetteville for between $100 and $110 per square foot. That same home today is probably going to cost between $135 and $155 per square foot, depending on the neighborhood. Those are the houses that seem to be in highest demand. Subdivisions full of them are popping up all over Fayetteville, Farmington, Prairie Grove, Elkins, Tontitown and Elm Springs — and those are just the towns closest to campus. Benton County is experiencing the same housing demand as Washington County.

If you’re coming from Dallas or Denver or a number of other metro areas where vendors are recruiting or promoting employees from, these home prices in NWA probably seem like a great deal.

A couple of week ago I got a random hand written letter from someone who had driven by my house and wanted to know how much it would take for them to buy it from me, cash. Don’t worry, I’m not selling, I couldn’t afford to buy the house I live in now.

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The local real estate “experts” say mortgage rates are at a all time low and houses selling fast but prices are zooming also. The market in this area, Atlanta. seem to me to be just like they were in 2006-8.

Multiple years of top 5 places to live exposure. I have a bumper sticker now
FAYETTEVILLE AR
It’s really great!
Please don’t move here

strong text

Construction costs way up and it’s not easy to get material. That’s everywhere.

I have two friends that decided to downsize and build. They sold for up, up and away price. Do have a lot. But are renting and in a holding pattern because construction material is high.

Will lumber prices come down? Will you be able to get other material? Some things you can’t even get right now.

All of that means existing homes valuable. You can sell your home, but you better have a place to go.

Aloha Clay,

What are the factors resulting in reduced availability of building materials? C19?

GHG!

I’m not sure it’s the availability of materials as much as the available labor. We’re trying to get flooring done, but can’t get it done until late March as too much demand for remodels and new construction. It’s crazy around here.

That is correct. There are some things in the supply chain that are slow. Some things you can get. And cost of lumber is WAY up.

We added a room this fall. It cost way above estimates because of lumber. And the type of siding that matched house was not available for months. We went with an alternative. I could give you more details but you get the picture.

Getting the flooring was not a problem. We waited a long time for windows. We had to delay start of the construction for 3 months to wait for all the materials. This is in Norfork. But it did not matter if we ordered windows in Fayetteville or Mountain Home.

I’m told remodels are extremely common over the last 6 months. People did not vacation and did not eat out. They spent money on their homes instead. I think we are an example of that.

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The “Housing Boom” in NWA has been going on for over 20 years. I lived there from 1994 to 2008 and was in the construction business and everything said in this thread has been said for the duration of that time off and on. As long as the job market is strong people will be moving in and needing homes. I thought Fayetteville was expensive until I moved to Austin in '08. Our house here has doubled in price since we bought it.

This renovation boom is happening across the US. I think your reasons for it are spot on. I live outside Memphis and the housing market is booming- much like NWA. My neighbor sold his house in 3 hours and had a bidding war at the same time.

Back to renovations, it really makes sense that it would be at an all time high. Lowes and Home Depot were open during the shutdown. If you can’t travel, can’t go out to eat, and are stuck at home, what else are you going to do? Oh, I also expect a baby boom to be announced as well. :wink:

Yellawood has an Auburn coaching buyout to fund. Lumber may not come down for a while :slight_smile:

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My goal is to buy some land in NWA this year, work on paying it off, and build on the land when I get to retirement here in anywhere from 4 to 8 years. So far, not finding what I am looking for, that I can afford (isn’t that always the case!) Found one track of land I probably would have moved on (looking for something somewhat close to the lake, as we are boaters). But it didn’t have water, would have to drill a well. That scares me, maybe it shouldn’t but it does.

As to construction cost, yes, Covid has had a major impact on lumber cost. The mills shut down or greatly reduced production. Most are back now, but it is going to take awhile to get caught up. The contractors I know are telling me that a framing package for a house doubled in the last year. It has come down now some, but still much higher than a year ago.

The Joneses will add a couple of pandemic babies to the tally. We had a daughter born last year and have another one on the way this summer.

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This reminds me of the first time I visited Raleigh for the 2008 NCAA Tournament. I was not expecting it to be so populated. I talked with one of the locals about it and he said it was due to Raleigh topping the best places to live list throughout the 2000s. At the time I think it was the fastest-growing metro in the nation.

The people coming to Baxter County is a steady stream — kinda like the White and Norfork rivers. New builds are common to see along the river. There are few contractors available so you have to wait on the good ones and be leery if you find one available.

I have had a well for 34 years now, No water bill is nice. I have a bored well, not drilled one.