The Anchorage market remains active with the average price $322,252 and the fastest moving home price is $200,000 to $225,000. This price range has the least number of days on market.
Sales in the $180,000 to $200,000 are the most vigorous. Homes with the least availability are in the $250,000 to $275,000 range.
Overall sales have dropped 1.19 percent in 2011 over 2010, continue strong on well priced and well maintained homes.
There were slightly more homes for sale in 2011 than in 2010. Sales, for the most part were on par with 2010, with the exception of July with sales up about 40 percent.
Overall list to sales price for homes stayed consistent with last year at between 99 and 99 percent. For condos, the average list to sales price also stayed at 99 percent.
Average days on market in 2011 increased slightly for homes and condos.
Properties in good condition and priced correctly continue to sell in a reasonable time.
Interest rates remain artificially low though rising, now around 4.0 percent for a 30 year loan. For a 15 year loan, a buyer can obtain a mortgage may be 3.5 percent.
Information or data used here is copyrighted by AK MLS, Inc. 2011, 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.
Representing the lowest number of inventory are homes priced $200,000 to $225,000 at ten (10%) percent supply. In that category there was a 4.47 month's supply.
Activity from $170,000 to $199,000 is 5.55 month's supply or 16 percent of homes available.
Those homes priced from $250,000 to $399,999 have about 8.97 to 11.09 month inventory supply, and represents about 22 percent of the inventory.
Homes priced from $400,000 to $500,000 represent 4 percent of the market and a 23.40 month's supply.
Overall, we've had a 5 percent decrease in total homes sold in 2011 over 2010, with little increase in dollars value. That area showing the greatest increase in homes sold is Eagle River.
The area of town showing the biggest decrease is downtown and Girdwood.
For condo/townhomes, the hot price range is $200,000 and $225,000. Condos priced $300,000 to $400,000 represented 11.09 month supply. Over $400,000, marketing time ranges 6 to 23.4 month's supply, unless they are very special.
Foreclosures and "short sales" are impacting the market but not the same as in the lower 48. Unfortunately, the number of foreclosures in Alaska is growing. 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 demand buyers to have credit scores above 620. Lenders are charging points for below average credit scores. Even Alaska Housing Finance Corporation requires a credit scores about 660.
The condo market remains in flux because of the number of associations which need to be reapproved.
Unless government officials change the policy, condos unfortunately, will harder to finance. Because of a lack of easy financing, condos may loose value. We don't know what turn VA financing will have. VA has traditionally followed FHA requirements.
Other changes are also coming down the line. FHA down payments are rising to five (5) percent.
Alaska Housing Finance Corporation has returned to its former policy of allowing veterans in the programs to finance the VA funding fee.
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 1,101 residential (zero lot line, single family & townhome) properties on the market, up from last month. This includes about 107 "complete new construction," "New-under construction," and "New-to be built." That's up 23 percent from last month.
There are 526 condo/townhomes active on the market now. This includes 107 "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 544 vacant lots representing residential, commercial, and recreational.
Multiplexes of all types number 140.
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 690 properties in the Municipality of Anchorage have received and the owners have accepted offers. That's about the same as last month.
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 to search for jobs so the rental market is also quite strong. 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 is home to some 290,588 in 2009, an increase of 2.4 percent from 2008. The 2009 increase was about twice the average annual rate of growth for the decade. The especially strong growth was due to a surge in net migration as Anchorage's economy remained relatively healthy during the deep national and global recession, and consequently an attractive place for job seekers (AEDC).
Anchorage, AK, is a city set within hundreds of acres of parkland. The Municipality of Anchorage starts around Portage Glacier, about 10 miles south of Girdwood, and 50 miles south of Anchorage, and extends north about 24 miles north to Eklutna, past Peters Creek and Chugiak. It comprises almost 2,000 square miles.
Complete with all the comforts of a large city, Anchorage feels and acts very much like a small town. There are theatres, museums, ball fields, stadiums, a growing port area, bike and hiking trails in all areas of town, and shopping for most tastes. No longer is it possible for one to get lost in Alaska.
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.
