Real Estate Information

Today is January 13, 2010.  Wow, we are two weeks into the new year and picking up speed.  The holiday season lulled everyone into a nice happy place, and now it's time to get back to work.

If you are watching the market than you know that every talking head has an opinion and very few of them are the same.  Now I going to chime in.  Just what we need right? Another talking head.  I will try to keep to what I know and what I see happening in the local real estate market.

The number of homes bottomed out in recent weeks.  The lowest level of homes available for sale this decade.  That is beginning to change, the number of homes increase by 50% last week.  23 new listings, now some of these had been on the market before the holidays and were taken off the market.  Now their back and ready for sale, and that is good news because with the number of new pending transactions; the supply dropped to just 2.4 months.

There is a enthusiasm in the market, interest rates are low, prices have been steady.  This is a win-win for buyers and sellers.  Buyers there are more homes coming on the market, although they're selling quickly.  For Sellers, if you're ready to sell, there are buyers in the market looking for good homes.

Buyers can see receive e-mails updates by registering at www.eagleriverhomesforsale.com

Sellers can receive a free CMA and marketing plan by visiting www.valuemyalaskanhome.com

"Steady as she goes"

We've heard this many times.  Keep a steady but consistent pace.  Doesn't sound real sexy but it is the 'Cure for what ails you".  A steady real estate market is a wonderful thing.

Homes are selling each week.  We get few new listings.  The inventory does not go up, although we could use a little more to keep the buyers happy.  The nation housing news came out today and it was positive across the country.  There are some expectations that the next couple of months will be slower. 

Not here in Eagle River.  We are forecasting more people moving to the area.  As rentals become scarce many families will look at new homes.  This will fuel the construction industry and we should see new homes starts increase this year.

Here are the numbers for the week of December 14Th-20Th:

• 7 new homes were listed for sale
• 5 homes went into contract (pending)
• 3 homes closed

The current number of homes available in Eagle River:

• 56 single Family homes
• 12 homes under construction
• 11 homes scheduled to be built (not started)
• 25 Condo/Townhomes
• 6 Condo/Townhomes under construction

The real estate market in Eagle River continues to be steady.  Just the way we like it.

The winter selling season is in full swing and we have entered the holiday season.  These two factors are showing in the current Eagle River real estate market activity.

Here in Eagle River the market activity* was consistent for this time of year. 

• There were just 3 new homes listed
• 5 homes pended(accepted offers)
• 2 homes closed (completed escrow contract)

The current number of existing homes available in Eagle River is dwindling, and in now down to just 59.  there are several new homes under construction however the few under construction will probably not be available until the January/February time frame. 

Information received from The Chugiak/Eagle River Chamber of Commerce shows local military personnel currently deployed returning in January.  There is also word that a new Battalion is being formed at Fort Richardson.  This could increase the population by as many as 5500 persons (not including families).  Current base housing availability is about 1200 units.  Not enough to accommodate the expected growth.

Housing availability in Eagle River will continue to be tight for the next 4-6 months.  Potential buyers may find themselves competing with other buyers for the best homes.  For helpful tips you may want to read the following report, "Eight Insiders tips for Home Buyers". 

*Based on information from AK MLS, Inc. for the period (date) through (date) but not compiled or published by AK MLS, Inc. Data maintained by AK MLS, Inc. may not reflect all real estate activity in the market. 

Wow, I was driving into the office this morning and a 25 minute drive was drawn out into an hour and 15 minutes.  The snow was falling and traffic was crawling.  This happens every once and a while here in Alaska.  So I stared at the break lights in front of me and made sure I did not end up on the trailor hitch of the truck in front of me.  I also listened to a great book along the way.

"Marketing to the Social Web" by Larry Weber.  Very good listening material for a drive like this morning.  It made me really think about my own business practices.  I also saw the relevance this book would have in many industries.  Larry Weber illustrates the use of blogs and website for business and client communication in a manner that is easy to understand.

So, now that I am here in the office I go online, take a quick look at some of the national blog sites and Wow.  I've only done limited blogging and it in no way resembles what I see out there in the mainstream of America.  These modern blog sites resemble the front page of Google and MSN.

Blog's have become a business and are gaining traction in business.  Well that is an understatement.  Blog's have a very prominent place in business today.  Whether its real estate, automotive, big oil, or the retail market place, there is a blog about the industry.  Not just one blog, probably 100's.

Blog's are a great way to get a message out, it's a great way to vent, and it's a great way to have fun.  Blog's are serious, funny, and very, very cool.  There are even video blogs. 

How do you jump in?

Quickly and with a passion.  I say this because if you are not passionate about something, you will not follow through.  What you blog about will not be very interesting.  So get some passion and have some fun. If you do not want to blog, then post comments on blogs.  There are some very interesting pieces out there.

Dear Eric:

Thank you for contacting me regarding first-time home buyer tax credits.  I appreciate hearing from you and having the opportunity to respond. 

I strongly supported the successful effort to extend this tax credit.  The extension became law on November 6, 2009.  Qualifying first-time home buyers are now eligible for a tax credit of up to $8,000 through April 30, 2010.  The new law also provides an additional 60 days for home buyers to close the sale and take advantage of the tax credit. Under this new law, home buyers are eligible for tax credits if they have not owned a home for three years before the purchase of a new home.  Additionally, the law allows existing home owners to qualify for a new tax credit of up to $6,500 if they have lived in their current residence for five years or more and purchase a home by the end of April 2010.  

I believe that if we are serious about getting our economy back on track, we must work to stabilize the housing market.  The decline in housing prices has put downward pressure on household balance sheets as many families' greatest asset declines in value.  Though I did not vote for the economic stimulus bill that was signed into law in February 2009, I supported the inclusion of the $8,000 home buyer tax credit in that legislation.  The tax credit has benefited more than 1.4 million home buyers since its inception in February 2009, and I am pleased that Congress decided to extend the program as it is contributing to the recovery of the housing market and the overall economy.

            Again, thank you for contacting me.  

United States Senator

http://murkowski.senate.gov

The Holiday season has arrived and we have successfully made it past Thanksgiving and Black Friday.  The sales are in full swing and there are several craft fairs each of the next couple of weekends.  The event you need to know about is this Friday night, December 4Th.

The Winter Wonderland and Tree Lighting ceremony in Town Square Park.  This is a big event put on by the Chugiak/Eagle River Chamber of Commerce.  The Eagle River Rotary will be bring Santa and his sleigh to the event, and local merchants will have booths set up to distribute hot drinks and seasonal treats.  The Chugiak/Eagle River Senior Center will be selling bowls of hot soup as a fund raiser, and the Chamber and Eagle River Rotary will be collecting food for local families.

Many of our local school choirs will be present to entertain, as well as singers for the Performing Arts Academy.  This is a lot of fun for everyone.  There will be free sleigh rides, and Santa Claus will be present to say hi to the kids.  Our office will be there handing out warm cookies to our friends and neighbors.

The Merry Merchant Munch is Friday and Saturday.  Prudential Jack White/Vista Real Estate and Homestate Mortgage will be participating on Friday afternoon, please stop by to see the decorations and holiday snacks.

As we look forward to Thanksgiving, we should look back at what has transpired in our local real estate market.  We have a lot to be thankful for. 

This year sales of existing homes has been steady.  As of today the number of sales is outpacing last year.  Inventory levels are well below last years numbers.

Single Family Homes

Condominiums/Townhomes

• 76 Sales in 2008 vs. 68 Sales in 2009
• 10.5% drop in the number sales
• Median Sales price decreased from $227,000 to $222,500

The difference in condo price does reflect a lack of new construction in this segment as well as downward pressure on prices of existing condos.

Construction of new homes sales has increased so far this year up 18.%, 44 new homes vs. 36 last year.

We have a lot to be thankful for.  Our housing market is good, pricing is stable, and some new homes are being built.  If you have a good home, and a roof over your head, please do something to help those that do not.

I would like to thank all the wonderful people I worked with this year.

Have a wonderful Thanksgiving.

Is now the time to buy a home? 

Can you afford it? 

What are interest rates going to do? 

Should I? 

What if it's not my perfect home?

These are questions we all ask ourselves, and I am here to say that there is no easy answer.  But there can be peace of mind in making a decision and moving in one direction or another. 

Uncertainty causes stress.  Stress causes health problems.  Stay away from the stress.

My father gave me very good advice when I was younger.  I was looking at two career paths and did not know which one would be the better one.  He told me to pick one, and don't look back, go for it.  I did and for the next ten years I excelled at my career.  That move eventually launched me into my present career.

This is a simple lessen, and we've all heard a version of it from someone.  It doesn't make it any easier to make a decision, but here is something that might. 

Change in Interest vs. Reduced Sales Price

Purchase Price  $200,000

Interest  Rate  5%                          Term  30 years                              Payment  $1,073.64

  ½% Increase in Rate  $1,135.58

  5% Increase in Price  $1,127.33

A ½% change in interest rates is approximately equal to 5% change in price  

  1% Increase in Rate  $1,199.10

  10% Increase in Price  $1,181.01

A 1% change in interest rates is approximately equal to 10% change in price 

The National Association of Realtors anticipates that Interest rates will be gin to rise in 2010 and that by the end of the year they will be approximately 5.8%. Compared to day's rate that is an increase of 1% or you will end up paying 10% more for your home. 

I think that says it all.