Eureka Springs and Holiday Island undergoing house-buying surge

One indication of the current population boom in the area is that some local storage facilities are full.

“We have been full now for four months,” Larry Stamps, site manager for Affordable Storage Solution, said. “I’ve got a waiting list. If someone moves, I’ve got it rented within ten minutes. A lot of people are moving into Holiday Island. Some are building houses and storing their things here until their house is ready.

“If you see a house for sale sign, don’t blink because there will be a pending sale on it the next day,” Stamps said.

Tom Dees, who played a key role in developing Holiday Island for 41 years, said there used to be 100 houses for sale in Holiday Island. Right now, there are about six.

“People are buying houses sight unseen,” Dees said. “They are trying to get out of those areas with a lot of problems. Holiday Island is a safe place with clean air and clean water, and it is going to grow. We’ve gone through the hard part developing central water, central sewer and paved roads to 5,000 lots.”

Dees doesn’t think the population growth will change Holiday Island much because the people moving in are like those who live here.

“The biggest problem is we can’t get builders,” he said. “We are becoming a bedroom community for people working in Benton County and Berryville. A lot of people work from home or commute. And now the Holiday Island commercial center is starting to take off.”

Dees said all of Northwest Arkansas is growing rapidly. He predicts the area will soon have a million people. He attributes that to three companies, J.B. Hunt, Tyson and Walmart, based in the area.

Harold Wolfe, owner of Harold’s Storage on Hwy. 23 South, reports that his storage units are staying more full than normal with only a few units currently available. Wolfe said many of his customers are moving here from California to flee Democrat rule, or fleeing Texas because of the mass invasion of illegal immigrants.

“They are leaving because they believe Democrat values are ruining their state or city,” Wolfe said. “That this illegal immigration and socialism are satanic moves to take over our country. We are in for trouble, but I think this socialism movement will be put down. More people with conservative values are moving out of Democrat-ruled areas.”

Glenn Crenshaw, principal broker and co-owner of All Seasons Real Estate, agrees there is a big influx of new residents. Crenshaw said some of the new residents are people working for large corporations who were given options for early retirement when Covid hit.

“They are taking early retirement and moving up here to get out of the congestion,” Crenshaw said. “When we retire, most people want a more relaxed lifestyle. A lot of people are coming in from Texas and California, and they are moving in here quickly. We have had a huge influx. Properties are selling in Eureka Springs in record numbers.”

He said they put a house on the market this past week for $500,000 and had two offers in six hours. That is just not something they have seen in the past. The housing inventory is at an all-time low.

“Right now, in the Eureka Springs zip code, there are only 44 houses for sale and that includes the lake,” he said. “There are only nine houses for sale in Holiday Island, which includes houses, condos and duplexes. Everything is selling at higher prices now.”

Crenshaw said the boom has been a real surprise to him. When Covid started, he predicted one of two things would happen: either the market would dry up or go completely crazy. The first two weeks, the phones were silent. Then, all of the sudden, internet traffic started taking off and it has not slowed down.

“It has gone completely nuts,” Crenshaw said. “From talking with other agents around the country, pretty much every market is up on the price side and things are selling more quickly.”

While houses selling quickly is good for Realtors, Crenshaw said the problem is that the inventory is so low that they can’t meet demand.

“Listings are prized by agents,” Crenshaw said. “There is not that much out there and it is hard to get them. Finding affordable houses in Eureka has always been a problem. Older homes at cheaper prices needed a lot of upkeep and maintenance. For someone with a lower income, it was hard to buy and maintain.”

Crenshaw was involved in building eight small homes on Wall Street. While more of that kind of building would be helpful to meet demand, Crenshaw said building supplies’ costs continues to be high and there are shortages in getting some materials. Plus, most of the well-established builders in town are booked a year to a year-and-a-half out.

There are plans to build some senior housing at the Eureka Springs Community Center.

“As part of the Community Center sustainability plan, we are proceeding with plans to renovate at least five of the Building 200 spaces as one bedroom/with office senior living apartments,” Debbie Davis, president the ESCC Board, said. “These will be handicapped accessible and located on the Community Center campus. Full occupancy of the mixed-use building will enable the community center to continue to offer programs and fitness opportunities to our community. This will also help with our revenues since we receive no sales taxes or city funds.”