Real Estate Market Should Remain Strong

The local real estate market is projected by some to be in good shape well into the millennium’s first decade.

“I think we’ll have an excellent year in 2003 and beyond,” said George Faucette, president of Coldwell Banker Faucette Real Estate in Fayetteville. “And the 10-year outlook in Northwest Arkansas is wonderful, unless you don’t want growth … then it may not be so wonderful.”

Faucette and others believe Benton and Washington counties will continue to be somewhat shielded from economic problems the rest of the nation is experiencing. Even the possibility of conflicts abroad shouldn’t have as big an impact on this corner of the world thanks to the residency of Wal-Mart Stores Inc., Tyson Foods Inc., and J.B. Hunt Transport Services Inc.

“I’m remaining very, very bullish on Northwest Arkansas,” said Mark Marquess, one of the two-county area’s largest homebuilders. “We have great interest rates. You can get a 15-year loan at about 4.5 percent interest and a 30-year note at about 5.5 percent. With these types of interest rates, and with so much industry coming to Northwest Arkansas, I think you’ll see subdivisions that will co-market to both counties.”

Marquess and Faucette each addressed the shortage of “starter” homes, particularly in Fayetteville. Land and construction costs continue to rise, making it difficult for developers to put in subdivisions catering to homes in the $125,000 and under price range. However, Marquess believes the low interest rates are allowing buyers to “buy a lot more than they could afford in the past.”

All the talk has been of the population growth in Benton County, but Faucette reminds that Fayetteville and Springdale are still growing strong, too.