Washington County Market Still Flooded with Upscale Condos

Because of the current state of the economy – which some analysts describe as being in its worst shape since the Great Depression – it’s little wonder the market for upscale ($300,000 or more) condominiums in Northwest Arkansas is in a valley.

“I would term it quiet,” said Sheree Alt, principal broker and senior vice president of Alexander Merry-Ship & Alt Real Estate Group Inc., in Fayetteville.

The sales figures from the past year show Alt is right on the money. Based on current industry numbers, sales of upscale condo properties listed in Benton and Washington counties have grinded to a halt.

There were no such condo sales reported in Benton County during the past 12 months, while in Washington County, there were just eight sales of more than $300,000. There are currently a combined 65 condo properties in that price range on the market – 60 in Washington County – and those are concentrated in the downtown Fayetteville and Dickson Street area.

Alt, who has 17 years experience as a Realtor in Northwest Arkansas, can remember a time not long ago when condo sales were “double to triple” what they are today. In 2005, properties were being sold before construction was completed.

“It was sort of a new approach to have a condo within walking distance to campus or in the hub of the restaurant/bar scene on Dickson,” Alt said. “But when it took off, it really took off. I think it all had to do with the location. We weren’t used to the fact that there were buyers who wanted to live downtown.”

The slowdown began just more than two years ago and the cause is no secret.

“As we all know, the downturn in the market has to do with the downturn in the economy,” Alt said. “It’s no one’s fault, it’s just the timing. It’s not a good time for real estate, period.”

As with most areas of real estate in the current economic climate, conditions here are in favor of the buyer. So who are the buyers where upscale condos are concerned?

Alt said the buyer profile for clients at AMA – which markets itself as the original downtown Fayetteville condominium specialist – consists of secondary home investors.

“They preferred a condo in the downtown Dickson area where they could be within walking distance to UA sports events, conduct business and entertain as well as serve as a residence for their children attending the college,” she said. “But that has slowed down. It’s nothing like it was.”

Other buyers are young professionals moving into the area, wanting a “turnkey” residence as opposed to a house with a yard to better suit their lifestyle that is heavy on business travel.

But the influx of people moving to Northwest Arkansas has also slowed from the pace of the past decade, especially in Benton County.

It’s another factor in the dipping market for condos.

“Not as many people are moving to the area, the economy, it’s all reflective of what‘s happening,” Alt said.

“But I think the good news is that Fayetteville will always be an economic engine because of the university and what we have here. The industry will always be here hopefully. We’ll have a need for condos due to that fact.”