Palmer and Wasilla real estate statistics for June 8-15, 2009

These statistics are for single family residential homes in the entire Mat-Su Borough. This includes all the towns from Talkeetna and Trapper Creek to Sutton and Chickaloon.

We went over 900 listings by a good amount this week. With 63 new listings and only 14 closings it was bound to happen. There were 35 pendings this week, so that bodes good for the future. The interesing thing about the pending sales is that 25 of them are new construction.

The fact that new construction can continue to compete well against existing home sales shows that housing prices have not dropped significantly. It is also a warning to home sellers that you have to price your home well below the new construction prices. Buyers will opt for new construction every time unless there is a large price difference.

New houses generally are built to 5 star plus standards so they not only qualify for the $7,500 energy rebate, they also have lower utility bills and maintanence costs. First time home buyers also get the $8,000 tax rebate and often combine it with the energy rebate on new homes.

I met with Nick Fonov of Pacific North Contruction today with a couple that was represented by Trevor Olson of IEC Realty. These people are first time home buyers, so they qualify for the $8,000 tax rebate and they will also get the $7,500 energy rebate. For less than $220,000 Pacific North can build them an 1850 square foot 4 bedroom, two and a half bath home with a two car garage on one acre. That is pretty tough competition for existing home sellers.

I am working with several home sellers that recognise that their house not only needs to be in top shape, it needs to be priced well to compete in this market. Here is a prime example.

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Well, once again the Monday memo on Wednesday. Suffice it to say, I’ve been busy lately.

This week is almost identical to last week. Pendings are up but closings are down. Most of the pendings will turn into closings within a few weeks so that column should rise.

Total listings continues to rise. The median price for the inventory on the market went up this week by $100. It’s been hanging steadily around $240,000. That is important because the median sales price for the year so far is exactly $200,000.

Obviously, a lot of those houses that are on the market are just not going to sell anytime soon. Houses priced in those higher price ranges have to be VERY competitive because they have to beat out a lot of competition to attract the buyers.

It’s also instructive that there have been 341 sales of single family homes so far this year. Last year there were 442 sales in the same time frame and the year before that there were 548.

Although prices haven’t dropped much, it’s still more of a buyers market than a sellers market because buyers have more to choose from and can shop until they find exactly what they need rather than grabbing something before someone else does.

It’s not a screaming buyers market however. In the $200,000 price range the houses are still selling fairly quickly. Its when you get above $300,000 or $400,000 that the activity drops dramatically.

We sold several houses in the high $300K range lately. They were all priced very competitively and in great condition. They had to beat out many other competitors to find a buyer so the sellers did what it takes. It takes a good price, but it also takes good staging. A house has to look good when a buyer drives up, and it has to look good when a buyer walks in. Within 30 seconds after a buyer walks into a house you can tell if they are interested or not.

So sellers, make your presentation a good one! Call me for some further ideas on this 907 232-7900.

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Palmer and Wasilla Real Estate Statistics for the week ending May 18, 2009

Well, we surpassed 800 total listings by a bunch this week. We might be on our way to 900 total residential listings in the borough. Fifty Five new sellers came on the market this past week. The median asking price remains right at $239,900.

It’s important to note that for the second week in a row, the median and average sales price has been below $200,000.

I did a market analysis for a higher price home this past week and noted that while there are currently 47 homes on the market between $300K-$400K, only 27 sold in the last year. There is close to two years worth of inventory on the market in that price range.

A look at the lower price homes shows that there were 454 sales between $100K-$200K and there are 201 on the market currently. So there is less than 6 months worth of inventory in that price range.

Statistics can look good or bad depending on how you use them. In the Absorption Rate studies I have been doing, I have only been looking at the last months sales compared to the current inventory. When the last month has been active, the absorption rate looks pretty good. But if I had done these in the winter when things were slow, the absorption rate would have been much worse.

Either way, houses are still selling if they are presented well and price right. New construction houses are still selling well. We are documenting the construction of these houses as they go up…look at the latest videos just taken yesterday. 1651 E Pintail and Kane Drive.

Both of these house are excellent values. For first time home buyers they will get both the $8,000 tax rebate and the $7,500 energy rebate. That is hard to beat. In addition, you get a new home that is built to high energy standards that will save you money year after year….

Give me a call if you would like to find out more about these rebates or home values in the valley. 907 232-7900 cell


This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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Here are the Palmer and Wasilla real estate statistics for the week. These numbers include all single family residences, (including cabins, mobile homes, and condos), for the the whole Mat-Su Borough.

The numbers remain relatively healthy. Closed sales are down a little from last week, but still much better than the winter. Notice that the pending and closed sales are much lower in price than the new listings or the total market. The action is in the lower price ranges.

Interest rates remain at historic lows but I have been reading more this week about inflation in our future. Of course, that is always being written. But some of this is from people who do not normally talk about inflation:

Here is an example from the The Weekly Market In Review that I get from Alice Roe of US Bank:

However, low rates are not a given considering the escalating inflation fears that reemerged recently. Oil prices rose most of last week and Fed Chairman Bernanke expressed concerns about “how to wind down the federal balance sheet” and “avoid inflation.” When a Fed official mentions inflation it is generally not positive for bonds. Inflation, real or perceived, erodes the value of bonds causing bond prices to fall and rates to rise. The last thing the economy needs now is rising mortgage interest rates. If inflation emerges that very well may happen despite the continued Fed efforts to keep rates low. With so much uncertainty, a cautious approach to float lock decisions, especially heading into the inflation data this week, would be wise.

Another article I got off www.realclearmarkets.com is also in part about inflation: Is America About To Go Broke?

Inflation will drive up interest rates along with all other prices. IF inflation comes, the buyers who locked in low interest rates will be happy campers…or home owners.

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Last week I predicted that the total inventory would remain above 800 for the summer. It’s 795 today. That shows how my crystal ball is working.

The market is much more active than it was a couple months ago.

Interest rates, rebates, and a relatively health economy, (so far), in Alaska is keeping houses moving. It’s about an even market between sellers and buyers. The higher price ranges are more of a buyers market while the lower price ranges still often see multiple offers. I was in a multiple offer situation just last week on a house in the $190K price range.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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These are the statistics for Palmer, Wasilla and the rest of the Mat-Su Borough for April 21-27, 2009. I have had some computer problems so this memo is late.

Fifty Three new listings and thirty three pendings for the week prove that the real estate market is heating up along with every thing else this spring. I even turned my air condition on for the first time yesterday.

Our total inventory passed the 800 mark for the first time this year. It will probably remain in that area until fall.

There was one listing over $2 million that hit the market this week. That tended to skew up the averages but it didn’t change the median range at all.

Note that the closed sales still remain around the $2K mark. That is the bullse ye of the current market.

Give me a call at 232-7900 if you have any specific questions about today’s real estate market.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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Wasilla Real Estate News statistics for the week of April 14-20, 2009. These are residential sales in the whole Mat-Su Borough including Wasilla, Palmer, and the rest of the borough.

Activity is definetely picking up. Buyers are making their choices on houses so that they can move in right after school is out. We have had several offers on houses and lots this week. A couple times we almost were in bidding situations.

I met with someone in Vagabond Blues on Friday to write an offer and my phone kept buzzing as it sat on the table. When I was done with the offer I had 17 missed calls. Needless to say, I was returning calls for awhile. Oh…and the offer was accepted as well.

So while the rest of the country may be in a blue real estate mood, things are still moving along a a decent pace today.

Although the market is fairly active, its important to be realistic about it. Notice the median sales prices. The median prices for sold properties is below $200,000. That is about $20,000 less than it was in 2007 and the difference between 2006 is even greater.

Buyers are generally looking at lower priced homes and if they do shop in the upper price ranges they are expecting concessions.

If you are serious about selling your home it needs to be priced right, and then presented right. Give me a call if you would like to discuss how to get your home sold in this market. My cell number is 907 232-7900.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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Wasilla Real Estate News statistics for the week of April 7-13, 2009. These statistics include the entire Matanuska-Susitna Borough including Wasilla, Palmer, Houston, Big Lake, Talkeetna, Willow, Sutton and regions beyond.

It appears that real estate activity has picked up a notch from the February and even the March slump. It also looks like it will continue through out the spring.

We are not doing nearly the amount of business that we were doing a couple years ago but there is still a pretty healthy real estate market in Alaska. Prices are not rising currently and anyone that purchased their home between 2005-2007 needs to be prepared for no profit or even a possibility of negative equity if they need to sell now.

I did a comparison today of 3 bedroom, 2 bath, 2 car garage ranch style homes that sold from 4/13/2004-4/13/2005 compared to the past year to date. These were newer homes all built since 2003. The median sales price of these homes in 2004/2005 was $229,000 and the median price for this past year was $219,000. This is an important statistic and worth keeping in mind for anyone selling their home today.

If you are interested in a realistic evaluation of your home’s value, give me a call at 232-7900.

What the future holds is anyone’s guess. So far, Alaska is faring better than most states. Take a look at the March Economic Report from the State of Alaska. While foreclosures are up for Alaska, they are nowhere near the catastrophe of the late 1980’s. In fact we are doing better than all but 2 states in the country. The only other 2 states with better foreclosure statistics are Wyoming and North Dakota.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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These are the statistics for Wasilla, Palmer, Talkeetna, Big Lake, Sutton and all the rest of the Mat-Su Borough for this past week. These statistics are only for single family residential homes. That is the heart of our market here in the valley and the Palmer/Wasilla core area is where 90% of the action takes place.

It looks like spring has finally come to real estate with 31 pendings this week. That is a very healthy amount. More closings will inevitibly follow. I wouldn’t expect to see 31 pendings every week but this is a lot more than we have had lately.

The excellent interest rates, (many people are locking in rates as low as 4.5% for 30 year fixed loans), certainly help. The lenders are all real busy refinancing people out of high rates into lower interest rate loans right now.

In addition, the Alaska Housing Energy rebate of $7,500 helps to spur the market. People enjoy not only buying a very efficient house that will save them a lot of money on their utility bills but also cashing the $7,500 check after closing.

There are some pretty amazing deals out there right now. Check out our Deals Of The Week, and our Motivated Seller Lists to find out about these deals.

If you are really into statistics you might enjoy the new supply/demand study from AkMLS.

One important thing to note from this study is the ratio of sales price to list price 98.76%. That means that sellers only came down an average of 2.24% off of their asking price. This is important for both buyers and sellers to keep in mind.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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Here are the statistics for the week of March 17-23, 2009. These are for single family homes in Wasilla, Palmer and the surrounding area including the whole Matanuska-Susitna Borough.

The total inventory continues to increase as it should through spring. And this is spring, at least officially if not temperature wise. We have more light than anyone south of us as of this week. That’s a nice thought. Not so nice is the prospect of Redoubt’s ash cloud blocking out the sun. So far it remains north of Wasilla and Palmer although Talkeetna may get some dusting today.

The pending inventory is up for the week but the closed inventory is down, way down. I expect that will also look better as things move into spring.

I have been doing some reading that makes me think that interest rates may go down a little more, but then they may rise later this summer. If that is true, it would be important to buy now rather than later. I’ll try to post the info later today or tomorrow about this. This is going to be a busy Monday, not sure if I will get it done today.

If you would like a daily update on the hot new listings that fit your criteria, just drop me a line at marty@valleymarket.com or give me a call. 907 232-7900 is my number.

This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.

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