Real Estate Information Archive

Fall is here, the leaves are turning and at night there is a hint of frost.  When you walk outside you can smell the ripened high bush cranberries.  Fall has arrived in South Central Alaska.

So what does this mean to our local real estate market?  Inventories are actually down from this time last year, with 2670 total homes available in the Anchorage and Mat-Su markets.  In August the was a 25% increase in sales over last year.  This is not surprising since the First Time tax credit ended last June.  Many of the early year sales would have happened later.  Overall this year there has been a good number of sales each month.  The Mat-Su Market has done about the same as last year, and Anchorage is seen less sales.  The Eagle River market has remained the bright spot in the Anchorage bowl.

What is happening to the prices of Eagle River Homes?

This is the time of year we see some of the bigger discounts on homes as sellers try to sell before winter.  The fall market in Eagle River has traditionally been very good.  There seem to be many buyers in the market and with interest rate on government loans so low (3.75% on a 30 year VA loan), we are seeing many buyers in our market.  There is some uncertainty; and how can there not be when you here the national media crying wolf everyday.

A recent poll on the economy reflected that 75% of Americans were not satisfied with what our lawmakers were doing and felt we were on shaky footing.  But when asked how they were doing 75% indicated that they were stable and dong well.  We know that right no some people are having a rough go of it, but for the most part people seem to be doing fine.  Home ownership may not be the huge wealth building tool it was for many years; however it is an asset worth owning.

For a more detail view of our local economy feel free to call me at 907-360-7471. 

Mid Summer Market update for Eagle River Alaska

I know that a lot of pople are out and about enjoying the summer.  So far this year the weather has been decent, not great but at least everyday has not been cold and rainy.  so I know that everyone is enjoying themselves.  Dip net fishing on the Kenai River has been awesome, the Eagle River Bear Paw was great and this week I know my wife is hiking the Crow Pass trail from Girdwood to Eagle River.  so there is plenty to do out there.

So with all this going on; what's the real estate market doing.  I've seen recent reports about consumer confidence being down, but that does not appear to be the case here in Eagle River Alaska.  The Mat-Su valley(Palmer/Wasilla) is holding its own compared to last year, and Anchorage is down about 9.5% in the number of homes sold.  Eagle River and Chugiak are up 16.1% so far this year. 

One difference this year is that we are selling more land for new home construction, and as a result of this new home sales are up.  This is much different then what we are seeing in the markets in the lower 48.  It should be noted that many towns in the lower 48 are doing just fine.  Middle America is surviving, even though the talking heads and Wall Street don't give us much credit.

There are tough sales out there, and there is more homes available this year than last.  the selection is good, and some homes are just over priced for their condition or location.  Remember the #1 rule in real estate is location, #2 is condition, and #3 is Price.  You can't change #1, but you can change #2 & #3. 

For more detailed information feel free to call me anytime. 

Remember to rinse your fish before you put them in the smoker, they turn out too salty otherwise, but most importantly...

Enjoy the summer!

Dear Friend and Neighbor,

 Every market — whether hot, normal or cool — holds unique challenges requiring special market insight and skills to overcome them. I have the market know-how to steer you through the choppy waters of today’s marketplace.

 I sincerely hope you’ll give me a call. I want to be your real estate licensee for life — not just for your next transaction. This means that at all times I will represent your interests with both your future and your total satisfaction in mind.

 When you become my "Client for Life," my staff and I solemnly promise to do
everything within our power to …

1. Sell your home in the timeframe you need … 

2. Get you the highest price possible in today’s marketplace … 

3. Market your home to other licensees so that together — as your marketing network — we can bring you only qualified buyers who will find your home a perfect fit …

4. Tell you the truth about your home and the current marketplace even when I know it may be difficult for you to hear, and …

5. Protect you by covering every legal and regulatory base required.

If the past boom market taught us anything, it’s this: no market lasts forever. Right now, home prices are holding fairly steady, and economists aren’t predicting deep price declines. So, if you’re planning to sell, I want to help you get every dollar of profit you have coming. But don’t wait until it’s too late. The very fact that no market conditions last forever is reason to call me right away.

Yours for a stress-free home-selling experience,

Eric M. Bushnell

Associate Broker

P.S. Who says the home-selling experience can’t be one of ease and enjoyment? Give me a call and I’ll prove them wrong. LET’S SELL YOUR HOUSE!

How to Sell Your Eagle River Home
in a Buyer's Market

A Fresh Look

The snow is falling today and it reminded me that Mother Nature has a way of making everything beautiful.  As the winter drags on the landscape is drab and gray.  Well thanks to Mother Nature, last night it started snowing, and 'Whallah', everything white and pristine again.

Some days we wish life was like that.  When you are selling your home this is an important lesson.  Your home needs a fresh look!  Don't get me wrong your house is beautiful, but face it you live in it everyday.  I realize you clean up after your self, but when was the last time you dusted, washed the wall corners leading to the kids room, cleaned the light shades, and the most important back-splash behind the stove?

These things seem like no brainers, however when you're selling your home they may get overlooked.  I know you clean them when you have a party.  My wife loves our home when we have a party, as everything gets cleaned and decluttered.  The home sparkles, although I may not be able to find everything I'm looking for the next couple of days.

The fresh snow reminds me that the one most important thing you can do in selling a home is to paint it.  Give it a fresh look.  Do it right, tape things correctly, take your time, put on multiple coats. 

Do it Right! Just like Mother Nature would!

"Can you believe that they drive from the Valley everyday?"

"Wow, you drive that far EVERYDAY!"  I hear this all the time from people.  A reality in most people everyday life is that they have to commute.  East Coast, West Coast, and in the Midwest, people drive to work.  Some may take mass transit, which does lessen the toll on you, maybe.  I still think the daily grind of getting to and from work is pretty consistent for everyone.  Well not everyone, some lucky people walk to work or ride their bikes.  This blog is not for you!

Its for the rest of us that spend 30-60 minutes on our way to work.

In a Alaska the commute can be quick and other days it can be horrible.  The weather dictates this as well as the moron that just cut off the guy in from of me sending him into the ditch, creating a huge snarl of traffic on the only road linking the Mat-Su Valley and Anchorage.  This is a reality that effects at least 30,000 people a dozen times a year.  Yes, just a dozen times a year.  So its not really that bad, well when it happens it's that bad.

I think if you commute from anywhere it will take you time.  commute from South Anchorage and it will take you longer to get to downtown than if you live in Eagle River.  The commute from Eagle river is the same as from Wasilla to Eagle River.  I just wish more businesses would relocate their corporate headquarters to Eagle River (BTW, Corporate guru's, we have land and would love to have you).  So if the difference is just an additional 30 minutes is it worth it. 

Some say the cost is huge, but I would argue its not.  For example 30 minutes at 65 mph in a truck that get 16 mpg ( I hope your car does better) uses 2..03 gallons and costs $7.03 ($3.46 per gallon) each way, $70.28 per week for the additional miles driven each way.  I think most people get better gas mileage than this.  This adds $302 to the monthly commute bill.

If a home in the Mat-Su Valley is $90,000 less does the difference save you any money at the end of each month?  Is the extra space that you get, as most homes are on larger lots (Half acres+ compared to a 1/4 acre or less in Anchorage), worth the difference?  there are more newer homes in the Mat-Su Valley, so the energy costs of these new more modern homes possibly offset the cost of the commute?  Easier access to the trails and rivers of the Mat-Su valley, that can save on your weekend gas bill, so there is a minor trade off, unless you go to Kenai or Seward every weekend than there is an increase.

Current interest rates are 5.125% today, and that additional $90,000 will cost you $490 per month on a 30 year conventional loan.  That is a saving of $182 per month that could go towards a more fuel efficient vehicle, or maybe a new boat?

BTW, this is what I was thinking about on my way in from Wasilla today.

In the Mat-Su Valley homes can be more affordable with a majority of the homes in the $150,000 to $350,000.  The Mat-Su Valley offers larger lots and access to recreational properties that Eagle River and Anchorage do not.  You can click anyone of the links below to see the current homes for sale.

• Wasilla
• Palmer
• Big Lake
• Houston
• Willow
• Talkeetna

2011 Forecast for Eagle River Alaska

January 2011 has arrived and now its time to pull out the crystal ball, or the magic 8 Ball, whichever you think is most accurate.  Now is when I do much of my planning for the coming year.  In the past months we have celebrated the holidays, enjoyed our friends and family, and looked forward to dealing with a new year.

So what will 2011 be like?  Before we decide on our best guess we need to take a look at 2010 and 2009.  How have we fared in the past two years?  In Chugiak and Eagle River we have sold 971 single family homes (This does not include condos), 501 in 2009 and 470 in 2010; down 6.2%.  Not too bad considering that the market was down much more substantially in the lower 48 markets.  The average sales price was unchanged in the Chugiak market, but up 3% in Eagle River and the median sales price was up in both markets.*

The available homes on the market was up at the end of the year with approximately a 5 month supply of homes.  This was up from a 3 month supply at the end of 2009.  The numbers have dropped off now at mid month and when you remove the new construction to be built (homes that have not been started at this time).  Currently there is about 1/3 less homes available; however these number are sure to climb over the next 30 days.  This low number limits a buyers choice and they tend to look in Anchorage or the Mat-Su Valley, trying to find a home they can afford.

If we look at these numbers it is easy to suggest that 2011 will be a slow year, however I would like to point out that we are coming off several booming years.  Our market is more normalized now the ever before.  The sales rate will be steady and I think most client are looking for quality over quantity, a nicer home vs. a bigger home.  I have seen more people trending towards larger garages.  Banks will continue to be a speed bump in the selling process as the underwriting standards become stricter.

My forecast for 2011 is similar to many others I have heard, I believe the Eagle River and Chugiak markets will experience increases in the number of sales and valuation.  A tighter inventory will bring up the price for the home, and there will be more new homes built this year.  There will be less condos, and more single family homes. Here it is the magic number for our area, we will sell:

501 Homes

I really like the extra one!

 *Based on information from Alaska Multiple Listing Service, Inc. (AK MLS) for the period CY2009 and CY2010 but not compiled or published by AK MLS.  Listing content maintained by AK MLS may not reflect all real property activity in the market.

Professional Conduct

This statement should be understood, at least in my line of work I expect it to be.  I am a Real Estate Licensee, licensed by the State of Alaska.  I am also an Associate Broker, so I have an additional lincense from the state.  I must abide by the rules set forth by our lawmakers.

I pride myself as being very knowledgeable and conduct myself according to the State Statutes that govern Real Estate Licensees. So it really bothers me when one of my licensees visits a perspective clients homes and follows the rules set forth by the State of Alaska and presents the Alaska Real Estate Commissions disclosure to the Homeowner, and they refuse to sign it because the licensee that was there earlier did not require them to sign it.

This is a disclosure documents that the state requires be signed before we proceed.  This documents explains to the home owners our duties and responsibilities owed to them, and right on this disclosure document it points out that it is not a contract.  The document is designed to educate a person so they know what to expect.  It is a brief two page document.

What gets me is that other licensees do not follow the State of Alaska Statutes and present this document, then when our licensees do the professional job they run into difficulties with the perspective client.

I am proud to say that the licensees of my office will not violate the statues just because a person is being difficult.  I know I have walked away from an individual that refused to acknowledge receipt of the document.  They said they had visited many home with other licensees and had never had to sign the document. 

Very Important:

This is to protect the client so they know whom they are meeting with!

I sometimes why the person that is abiding by the law is punished by the public.  People believe every word spoken on TV, but if provided with an official document from the State of Alaska they refuse to follow the instructions.

Sometimes I just don't get it.  I remember my Dad said don't sign anything...until you have read it and understand it.  I think the second part of his statement is the most important.

The moral of this little rant is this.  If you would like to work with the most professional and ethical licensees in Alaska, stop by Prudential Jack White/Vista Real Estate in Eagle River. 

We do it right!