The Anchorage market remains relatively active especially in the $200,000 to $325,000 purchase price range. Properties in good condition have been moving off the market in a week or two. Buyers were attempting to claim the $8,000 government rebate for first time home buyers.
Sales in that price range have picked up considerably. In spite of this, there are still fewer homes selling this year as compared with last year. Occasionally, we still see multiple offers if the house is especially special.
There's considerable competition out there for fewer buyers so sellers need to continue sharpening their pencils, be willing to be realistic, and be prepared to give buyers concessions.
Interest rates remain artificially low at 4.75 percent to 5.25 percent.
Information or data used here is copyrighted by AK MLS, Inc. 2009, and no portion may be reproduced, redistributed or retransmitted without the express permission of AK MLS, Inc. Further, AK MLS, Inc. does not warrant the accuracy of the information or data contained herein.
Activity under $180,000 to $225,000 is strong, with about a three (3) month's supply of homes.
Homes priced between $225,000 and $300,000 still have strong appeal with a four (4) month inventory, and represent 26 percent of Anchorage's housing market.
Those homes priced from $300,000 to $350,000 have about a 4 1/2 month inventory supply, and represents about 15 percent of the inventory.
The range from $400,000 to $750,000 has grown to a market time of 7 1/2 to 11+ months and represents 40 percent of the active inventory. Sellers with homes above $750,000 (about 7 percent) can expect to wait from 15 to 34 months for an offer.
Areas of town least affected this month by price decreases were Abbott Rd to DeArmoun, and the east side from Seward Highway east past Muldoon. Most affected were areas of Lake Otis southeast Anchorage, north Anchorage (Mt. View), Girdwood, and Chugiak/Peters Creek. Overall prices were down only 2 percent which represented a volume loss of 10 percent.
For condo/townhomes, the hot price range is $130,000 to $200,000 with a 3-4 month supply. Since there are so many condo/townhomes on the market between $200,000 and $225,000, there is 8.5 month supply and represents 21 percent of the market. Condos priced over $300,000 to $400,000 are also averaging about 10 months on the market. Over $400,000, marketing time ranges from 6 to 16 months, unless they are very special.
Foreclosures and "short sales" are impacting the market but not the same as in the lower 48. Buyers must keep in mind that asset managers and lenders who make the decisions on these properties are balancing offering dollars against carrying costs. Many are not willing to give special deals to buyers. And all properties are sold "as-is" and some are not financeable in their present condition.
Lenders continue to offer a wide variety of loans, however, the underwriters expect buyers to have credit scores above 720. Lenders are charging points for below average credit scores. Even Alaska Housing Finance Corporation requires a credit scores about 660.
Affecting the condo market significantly in November will be a relative disappearance of FHA loans. FHA has announced that all condo projects that haven't received their FHA approvals since October 2008 will have to reapply for approvals. These condos cannot reapply until after November 2009.
Condos approved since October 2008 will be, for the most part, those built in 2008. What this means is virtually every condo project in the entire country will have to reapply for FHA approval and they can't begin those applications until November 2009.
Since FHA & VA financing are the major forms of financing condos, this will have a major impact on the condo market until FHA sorts this out. Other changes are also coming down the line.
Negotiating and bargaining are integral parts of today's sales activities. It is common for buyers to ask for concessions in their offers.
The numbers and statistics offered below were derived from home sales throughout the entire Municipality of Anchorage which includes Anchorage, Eagle River, Chugiak, Peters Creek and Girdwood.
Currently there are 892 residential (zero lot line, single family & townhome) properties on the market, down from last month. This includes about 102 "complete new construction," "New-under construction," and "New-to be built." That's down from last month.
There are 472 condo/townhomes active on the market now. This includes 100 "new completed, new under construction" and "new-to be built," on the market.
There is some overlap between the townhomes and residential as some licensees list the properties under both categories. Also, the number of new construction homes and townhomes is dropping.
There are 550 vacant lots representing residential, commercial, and recreational.
These numbers are all down from last month showing there is action in today's market.
Multiplexes of all types number 198.
It is important to note that buyers still ignore over priced homes. There are too many other well priced properties to look at. And of course, more than 90 percent of buyers start their search on the internet.
If you're a seller and you have constant traffic and no offers on your home, chances are your price is slightly high. If you have no showings on your home, your price is notably high and buyers are looking at home they feel are a better value. Talk with your licensee about how to draw more attention to your home.
There are 1,011 properties in the Municipality of Anchorage have received and the owners have accepted offers. The increase is partly due to the weather, fantastic interest rate, and $8,000 rebate for first time buyers
Buyers continue to spend time researching properties on the internet before they physically start their home search. Internet buyers are more informed and know what they want and how much it should cost. Public open houses are less effective than they have been in the past.
Buyers continue moving to Alaska and job stability continues to strongly drive this market. Also, a considerable number of military buyers are moving to Alaska.
The reduction in new construction condos shows that builders are scaling back on their new projects. The better groupings will sell long before the average ones all over town as well as Eagle River.
If you're buying, make sure you work with a licensee who understands how to operate in a changing market.
Astute licensees are continually educating and updating their sellers better as to what competing properties are selling for so they can make adjustments in their pricing strategy. Sellers who aren't following the market are finding themselves making marketing adjustments to attract buyers.
ZIP Codes: 99501, 99502, 99503, 99504, 99505, 99506, 99507, 99508, 99509, 99511, 99515, 99516, 99517, 99577, 99567 Approximate Location Boundaries: Anchorage is bounded by Cook Inlet, the Chugach Mountains and Turnagain Arm
Location Characteristics: Anchorage, AK, is like a city set within hundreds of acres of parkland. The Municipality of Anchorage starts around Portage Glacier, about 10 miles south of Girdwood, and 40 miles south of Anchorage, and extends north about 25 miles north to Eklutna, past Peters Creek. It comprises almost 2,000 square miles and is home to more than 285,000 residents.
Anchorage has all the comforts of a large city, but it feels and acts very much like a small town.
About Pauline Hofseth:
Pauline's genuine, caring attitude has helped families, just like yours, make an exciting and smooth transition when buying or selling their homes. Her proven approach and family values have earned her the respect of clients and colleagues alike. As a result, much of her business comes from referrals from past clients.
Pauline began her professional real estate career in 1986, in the field of commercial and residential property management. With the same gusto she dedicated to her commercial clients, she turned to residential sales in 1989 and became an Associate Broker. Here, she used her degree from Maryland University and many years of experience in Journalism/Public Relations to maximize seller exposure and put buyers into their chosen homes.
Pauline prides herself in carefully listening to her clients' needs and translating them into buyer and seller action plans. To her credit, Pauline is among the top 25% of some 100 Anchorage Prudential Vista agents and has consistently received the President's Award for sales achievement. She truly believes that honesty and looking out for the client's best interests are critical to achieving success. People of all walks of life make up Pauline's client base. She handles all properties, from starter homes, move-up and fine custom homes to land and income properties.
When she began her career in real estate, Pauline made a commitment to work hard and spend the long hours necessary to be successful. Through consistent effort and a reputation for outstanding service, Pauline has built a solid client base and has expanded her business through referrals from satisfied clients.
Included in Pauline's in-depth training are special real estate courses in real estate practice, economics, financing, marketing, ethics, property management, legal aspects, appraisal techniques, real estate as investments, technology, exchanges, taxation and creative financing. This extensive background and knowledge base enables Pauline to provide outstanding quality advice and service not found with many agents today.
Organizations with which Pauline is affiliated are National Association of REALTORS®, Alaska State and Anchorage Boards of REALTORS®, Anchorage Multiple Listing System, Certified Residential Council and Real Estate Buyer's Agent Council. She is one of the few agents in the nation to hold the professional designation "GRI" (Graduate Realtor Institute) and the prestigious designation of "CRS" (Certified Residential Specialist). She is also "ABR" (Accredited Buyer's Representative), a "RECS" (Real Estate Cyberspace Specialist), and was named an e-Pro by the National Association of Realtors and e-Certified by the Prudential network.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
