Real Estate Changes Apparent in NWA Market

The Northwest Arkansas commercial market continued to grow as the area’s residential market saw further signs of correction during the third quarter.

According to the latest Skyline Report complied by the Center for Business and Economic Research at the University of Arkansas for Arvest Bank Group Inc., building permits for residential and commercial properties have decreased from 2006 levels.

Commercial building permits for the third quarter were valued at $58.1 million, down $4 million from the previous quarter.

Residential building permits were down 33 percent from the previous year to 653 permits for the two-county area.

Negative 12-month absorption rates were recorded for all commercial sub-categories while the residential market saw an improvement in the amount of unoccupied inventory.

Kathy Deck, lead researcher for the Skyline Report, said slowing construction in both sectors is positive news for the area and indicates developers have taken note of the market’s trends.