Real Estate Information Archive

Wow, what a week! Things have been hopping around here and I am just now getting to a weekly update.  I will still share with you last weeks numbers and try to give some insight into whats transpiring this week.  The weather has been very nice and it brings out the buyers.  School started this week in the Valley and in Anchorage, so many potential buyers have been very busy.

Last week we saw 16 homes pend in the Eagle River market compared to just 14 new listings.  When I looked at existing inventory yesterday there were only 188 homes available in Eagle River; 16 of which are not built at this time. That leaves us with just a 2.73 month supply of homes available in Eagle River.  This is not surprising to me as we are seeing many new military personnel moving into the area. 

Also, keep an eye on your calendar.  November 30th is almost here.  If you are a first time home buyer and wish to take advantage of the $8000 tax credit you must close on your new home by November 30th, 2009.  If you have not owned a home within the last two years you may qualify for this tax credit, even if you owned a home before that. Visit the buyers resource section of my website for more information.

If you are thinking about buying a home now may be the time.  Call me and ask the hard questions, I will give you a straight answer.  Next year it may be more expensive and you will not be able to buy what you want.

Local real estate market bucks the trend

By DARRELL L. BREESE
Alaska Star

Nationally the economy is languishing in a recession, as foreclosed homes flood the market. And the picture is not much prettier within the state.

Moody's Adversity Index, released July 17 tagged Alaska as "in recession" since April. The unemployment rate for Alaska is at 8.5 percent and in Anchorage it is at 7.3 percent.

Given all the economic indicators one would assume that the local real estate market is struggling, but that is not the case according to a group of local Realtors.

"The local market has remained fairly stable," said Eric Bushnell, "All in all the Chugiak-Eagle River real estate market is balanced and doing better than other parts of the state."

Statistics from the Alaska Multiple Listing Service, which records all properties for sale by Realtors in the state, shows there has been little change in the local market since the decline of the nation's economy, especially in the area of median priced homes, between $250,000 and $350,000.

"There has been a slight reduction in the number of sales in that price range," Bushnell said. "But the homes are still selling."

The key indicator of the vitality of the housing market for Bushnell is the amount of supply.

"National experts tell us that a market with a four to six month supply of homes represents a balanced market," he said. "Anything more than that indicates it's a buyers market. A supply less than that means it's a sellers market."

The current supply of homes on the market in the Chugiak-Eagle River area is at 4.75 months. Of the 196 homes available in the local market at the end of July, there were offers pending on 21 of them and 38 home sales were completed within the month. By comparison, Parker Colo., a community with a similar population to the Chugiak-Eagle River area, has 900 homes on the market.

Comparing the current local numbers to previous years reveals a slight dip in the market, but nothing as drastic as some communities around the state and country are experiencing. In July of 2008 there was a 4.1 month inventory of homes for sale in Chugiak-Eagle River and 53 sales closed; in July 2007, at the high point of the real estate boom, there was a 3.84 month supply of homes and 68 homes sold.

"We're not seeing the homes flying off the market like they did a couple years ago," Bushnell said. "But the homes are still selling."

The homes priced right and presented in a proper manner to potential homebuyers are still moving fast. One case is a home listed for sale by Cindy Wilson of Re-Max of Eagle River. The home received four offers within the first week on the market.

Compared to other parts of the state, the local are especially striking.

In the Matanuska-Susitna Borough, there is a 6.5-month inventory of homes; Anchorage has an 8.7-month inventory; and the Kenai Peninsula has a 16-month inventory. In July, Anchorage had more than 1,000 homes on the market and only 67 pending sales.

"Having such a balanced market compared to the rest of the state is good for the local homeowner," Bushnell said. "It means homes hold their value, which brings stability to the local market."

What is it that makes the local real estate market so appealing?

According to Bushnell, it is because of the golden rule in real estate.

"Location, location, location," he said. "The Chugiak-Eagle River area is a true bedroom community. But it's also a great place to raise a family and experience Alaska."

Both Bushnell and Wilson credited the influx of military families, caused by an increase in troops at Fort Richardson, as one of the keys to the markets overall health.

Wilson also pointed to the ever-fluctuating price of gas as a key element to the local housing market.

"People who were looking in the Mat-Su Valley three years ago are now looking in Eagle River," she said. "As gas prices go up, more people move closer to where they work - Anchorage."

Other key attractors for homebuyers are the community and small-town charm of the area.

"People like to live here because they know their neighbors," Bushnell said. "Whether it be from a PTA meeting or a kids hockey team you get a sense of belonging that is difficult to find in Anchorage."

Bushnell speculated that if there were an increase in certain amenities locally, such as entertainment outlets and restaurants, the market would be even stronger than it is today.

Reach the reporter at darrell.breese.@alaskastar.com.

This article published in The Alaska Star on Thursday, August 6, 2009.

Here is the Eagle River Real Estate market update for this week.  Last week we saw continued strong activity in our local real estate market.  17 homes pended (accepted contracts), while there we only 14 new homes listed for sale.  Current inventory levels continue to drop, and I hear from other Realtors that buyers are having a harder time finding what they're really looking for.

Interest rates have remained steady, with minor ups and downs.  Current rates range from 5% to 5.375% for 30 year mortgages.  There are several new rules in the lending world that make it a little more time consuming to purchase a home.  The good news is that there is plenty of money available if you wish to buy. 

If you are considering buying I would do it now before the interest rates go up.  With the economic stimulus monies floating around most economists believe it is only a matter of time before we some inflation and interest rates have to go up.

Better to get what you want now, while you can afford it.

We finished another great weekend and now the weather has started to change.  We have seen some much needed rain.  But how does this effect the local market?

If it sunny everyday then buyers just want to have fun, they go fishing, hiking and explore this wonderful area.  When the weather gets a little cold we see people start to worry about winter, BTW, school starts in one month. 

This means that buyers are going to be seriously looking.  Inventory levels, homes available for sale, are dropping.  This is a good thing.  Interest rates were down again today. 

The recap for Eagle River is this, 8 homes pended, and there were 6 closing.  several of these homes were in the $600,000+ range.  The average home price pended in the last 30 days was $369,000.  That is moving up from the first half of the year.

All in all the Eagle River real estate market is doing well, but then Eagle River has always done better than other areas.  Eagle River is the place to live.

What does the Eagle River Bear Paw festival and real estate have to do with each other? Well that is a great question, and for 9 years it has been a way for the Prudential Jack White/Vista Real Estate office in Eagle River to have fun and really impress the visitors and residents of Eagle River.

This is a great time for all. We sponsor a Miss Bear Paw Pageant contestant, enter different events like the Dog and Owner look-a-like contest, Slippery Salmon race, the Slammin Salmon Cookoff, and our favorite event, the Parade.

And We do a parade well. This year will be no different. We have many hours invested into the design of this float and you will need to come see it, and I am sure you will appreciate it. entertaining the folks at the parade is very important. Life is complicated and there are demands placed on us every day. This event takes a lot time, careful attention to detail, a lot of patience while we plan, build, and decorate the float.

It allows us time to stop, not take ourselves to seriously, and have a lot of fun.

Real Estate update for the week of July 6, 2009.

The Eagle River saw an increase in market activity the last couple of weeks.  217 homes are on the market, 15 pended and 6 closed.  4.91 months of supply.

As we enter into the new construction season and saw dust starts to fly through the air, one wonders will we get back to the growth we saw just a few years ago. 

I believe we will see steady growth in new construction side of real estate.  in Eagle River we will see steady growth.  Powder Ridge is seeing several new homes this year.  Nolan Homes, LLC., LLC is almost finished with a a home and there are open houses there each weekend.

Nolan Homes, LLC. is currently marketing 22 new homes in the Powder Ridge subdivision.  There is a myriad of styles and sizes.  Nolan Homes, LLC. is offering two levels of specifications, a standard level which is still a higher level of building specifications, and a Luxury build specification.  The Luxury level includes upgrades such hardwood flooring, granite counter tops, and many other features withing he home.

New construction is moving forward and Eagle River is growing.  Come to Powder Ridge and see the progress.

What is happening out there?  This is what I was asking myself yesterday.  Interest rates did a little dance yesterday. They didn't just jump,they jumped twice.  The good news is they stayed stable today.

Now is the building season for new construction.  My second question was how is this going to effect the new homes we're going to build?  Steady interest rates make everyone happy.  Timing the market is not a good recipe for success.

I spoke with another business owner in town about the small jump, and he said that maybe he should have bought another home and used it for a rental.  I realize there is a lot of uncertainty in the economy, but the housing market in Eagle River Alaska has remain steady.

If you are trying to time the market, don't.  There are good deals out there and the interest rates are pretty low.  Waiting for that better deal will only cause you to miss out on the good deal that is available now. 

I think that if we worry to much about what we may lose, we will never get a chance to live.  You have to make decisions, you have to make choices, you cannot live on the sidelines.  How many people do you know that missed out on that great opportunity?

I am not saying take risk, just don't be paralyzed by the unknown.  Life is all about the unknown, make good decisions and move on..I mean move in.

We have finished the 1st quarter of 2009.  How has it effected you?  Did the press influence how you spend your income? 

At a local level my first impression of the economy is that it is good.  Do you agree? or Disagree?

In Eagle River Alaska the economy seems good, and the real estate numbers reflect that statement.  The number of homes sold are up 15%.  Our office was up 152% in the first two months of the year, and march was a plus month but not by as much.  When I read the different publication, Alaska Journal of Commerce, the Petroleum News, and The Anchorage Daily News, I get a different sense. 

There are good positive stories that show we are moving forward, but there are more spelling out the gloom.  The best number I've seen is only a slight up tic in unemployment, and a drop in Foreclosures.  The number of homes on the market is less than last year and the market time is staying pretty consistent.  We have seen a slight drop in value in some price ranges and this is expect with some of the deflation we've seen.

The Stock Market is moving up and I am glad to say I have seen positive growth.  As spring quickly approaches the out look is good.  There will be good deals, and interest rates are at an all time low.  The low interest rate are allowing home owners to lower their payments.  The real estate market appears stable for now.  A bright spot is the new construction segment.  as inventory levels there is a small amount of renewed interest in building homes.  Lot sales are up and there are several new homes under construction in Eagle River.

All in all I believe the the sky is not going to fall.  We all have to work a little harder, spend our money more wisely, and save a little for the future.