Alaska Real Estate is in a Stong Seller's Market

Alaska Real Estate is in a Strong Seller's Market.

The supply and demand ratio has tipped in the odds of the seller.  If you are curious what your home value is PLEASE CLICK HERE FOR MORE INFORMATION

Future House Values? Simple as Supply and Demand
For some time now, we have attempted to shed light on the fact that pricing in today’s real estate market, as it is in the markets for every other saleable item, will be determined by the concept of ‘supply and demand’.

According to dictionary.com:

“The relationship between supply and demand determines the price of a commodity. This relationship is thought to be the driving force in a free market.”

In real estate, supply and demand is represented as the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).

While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:

• 1-4 months supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
• 5-6 months supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
• 7-8 months supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.

What is happening across the country right now?

In most parts of the country, home values are rising. This is for two reasons:

1. According to NAR’s latest Existing Homes Sales Report, raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.
2. According to this month’s Pending Sales Report from NAR, houses going into contract reached levels last seen in April 2010 which was the month the Home Buyers' Tax Credit expired.

This has resulted in a 4.2-month supply at the current sales pace which is the lowest housing supply since April 2005 when it was also 4.2 months.

Based on the table above, we can see that the supply/demand ratio is leaning toward a sellers’ market where prices will appreciate. That has created positive movement in housing values in most parts of the country.

Should I wait to sell my house?

Should I wait to sell my house?

Should I wait to sell my house is a common question that many Alaska home sellers may ask.

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

If you are interested in selling your home CLICK HERE

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition - For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.

For a look at the Palmer and Wasilla, Alaska real estate trends CLICK HERE

Homes for sale in Mountain Ranch Subdivision, Wasilla, AK

Homes for Sale in Mountain Ranch Subdivision Wasilla, Alaska

Looking for a home in Mountain Ranch Subdivision?

If you are interested in finding a home for sale in Mountain Ranch Subdivision of Wasilla, AK please click on the link for immediate information about homes for sale.  If you would like to know a bit more about the neighborhood I have included a few facts and links that may be helpful for you. 

Why Do People Live in Mountain Ranch?

Mountain Ranch is a large neighborhood of single family homes. Situated outside the between the cities of Palmer, AK and located within a short distance of the Glenn Highway. The fair is close but not to close. This is very convenient when it is State fair time.

What's the Neighborhood Like?

The homes you would expect to find for sale in Mountain Ranch Subdivision are generally going to range between 864 and 3333 square feet. Most of the homes were built starting 2005 to 2014.  The typical configuration is mainly 2 to 5 bedrooms and 1 to 3 baths. The lots are approximately a little less than 1/2 acre.

What's Going on Nearby the Mountain Ranch Subdivision?

Mountain Ranch is conveniently located just off the Parks Highway between Palmer and Wailla, Alaska and it is an excellent commute location to Anchorage and JBER.  Mat-Su Regional Medical Center is close by as well as big box discount shopping areas, most chain fast food establishments, as well as the local movie theater within 10 minutes. In addition we have a wonderful collection of local favorite restaurants, including Locals.  Find out about The Ranch and the surrounding area's community information including banks, schools, shopping and what the community statistics are at my web page.

What Schools are nearby?

If you buy a home for sale in Mountain Ranch Subdivision of Wasilla AK, the local schools serving this area are Sherrod/Swanson Elementary School as well as Palmer Middle and High School. To get local school scores and more information about these schools check out the Palmer school reports on my website.
Because the area is in a growth phase sometimes school boundaries change, so you will need to reconfirm this.

Now You Really Want to Find a Home Here, Right?

If you are interested in the current homes and lots for sale in Mountain Ranch Subdivision of Palmer AK click on the link. Our 'for sale' property information is a direct feed from the Alaska MLS and is updated multiple times per day.

To Search for Homes in the Palmer, Wasilla, Houston and other areas please visit my site.

Homes for Sale in Equestrian Acres Palmer, Alaska

Homes for Sale in Equestrian Acres Palmer, Alaska

Looking for a home in Equestrian Acres Subdivision?

If you are interested in finding a home for sale in the Equestrian Acres Subdivision of Palmer, AK please click on the link for immediate information about homes for sale.  If you would like to know a bit more about the neighborhood I have included a few facts and links that may be helpful for you. 

Why Do People Live in Equestrian Acres?

Equestrian Acres is a nicely planned neighborhood of single family homes that are conveniently situated between the cities of Palmer, AK and Wasilla, AK on the Palmer-Wasilla Highway.  I personally love that the builder left many of the old growth trees. This lends an ambiance to the neighborhood that can be hard to find.

What's the Neighborhood Like?

The homes you would expect to find for sale in the Equestrian Acres Subdivision are generally going to range between 1100 and 3600 square feet. Most of the homes were originally built in the early 80's however there is still construction occurring.  The homes are 3-5 bedrooms and 1/3/4 to 4 baths. Most of the lots range from just under 1/2 acre to an acre.

What's Going on Nearby the Equestrian Acres Subdivision?

Equestrian Acres is conveniently located just off the Palmer-Wasilla Highway and is an excellent commute location to Anchorage and JBER.  Mat-Su Regional Medical Center is close by as well as big box discount shopping areas, most chain fast food establishments, as well as the local movie theater within 15 minutes. In addition we have a wonderful collection of local favorite restaurants, including Locals, Turkey Red, Pioneer Pizza and the Noisy Goose.  Downtown Palmer offers a variety of gift and specialty stores and caters to the local market with the Mat-Su Farm Market year round.  Colony Days and Colony Christmas as well as Friday Flings in Palmer which is another Farmers Market style of event are all well attended events.  Find out about Meadow Brook and the surrounding area's community information including banks, schools, shopping and what the community statistics are at my web page.

What Schools are nearby?

If you buy a home for sale in the Equestrian Acres Subdivision of Palmer AK, the local schools serving this area are Sherrod & Swanson Elementary Schools as well as Palmer Middle and High School. To get local school scores and more information about these schools check out the Palmer school reports on my website.
Because the area is in a growth phase sometimes school boundaries change, so you will need to reconfirm this.

Now You Really Want to Find a Home Here, Right?

If you are interested in the current homes for sale in Equestrian Acres Subdivision of Palmer AK click on the link. Our 'for sale' property information is a direct feed from the Alaska MLS and is updated multiple times per day.

To Search for Homes in the Palmer, Wasilla, Houston and other areas please visit my site.

5 TIPS FOR COLD WEATHER SAFETY

With a few more months of winter remaining, here are 5 tips for cold weather safety.  As a volunteer instructor for the Alaska Department of Fish and Game's Hunter Information and Training (HIT) program, these are some of the concepts that we present to our students.  You can learn more about the different courses at the following link Alaska Fish and Game Hunter Information and Training. 

One of the benefits to volunteering as an instructor for Alaska's HIT program, is receiving training concepts and materials that our national organization will occasionally send out that we can utilize during our course training sessions.  This is a very good article about cold weather preparation while hunting, but as I was reading it, felt that it would be a good resource for anyone that spends time outdoors.  Here is a link to the story 5 Tips for Cold Water Hunter Safety.  While we are rapidly approaching spring, it is often during times like this that we are least prepared...running out the door without a jacket because it's a beautiful day, going for a hike without bringing a pack with a few essentials in the event that the weather changes, etc. etc.  Often during the middle of winter we are prepared for an emergency.  Extra gear in the back of the car/truck, coffee can with candles and various food items, shovels, etc. etc.  But what I refer to as the "fringe seasons", spring and fall, are the ones that most people run into trouble because they don't anticipate anything going wrong.

While our blog is primarily about Alaska Real Estate, it is Alaska after all, and it seemed like these were tips that everyone could stand to be reminded of.  Maybe the proper cleaning of your firearm and firearm safety doesn't necessarily apply to everyone, the rest of it certainly does.

And if it is too nasty to do anything outside, feel free to take a look at the homes that are for sale in Alaska on our website at Alaska Home Sellers.

Stay safe out there!
      

THINGS TO CONSIDER WHEN BUYING A HOME

The Winter Edition of "Things to Consider When Buying a Home" is available now.  With all the daylight that we are gaining now on a daily basis, all of us are probably experiencing a bit of 'Cabin Fever' and are anxiously awaiting the rapidly approaching Alaskan Summer!

For many, spring also means that the new home that they have been dreaming of starts to become an all consuming part of their daily lives.  Looking online every night to see if the 'one' has came on the market today, to even sneaking a quick peak during breaks at work.  If you are one of these, we have a booklet that we think that you will find invaluable.

Things to consider when buying a home

It is filled with information that answers so many of the questions that today's buyers have.  It covers all of these topics, plus so many more of the most asked questions of today's buyers:  

BUYERS: THE WINDOW OF OPPORTUNITY IS STILL OPEN

WHERE ARE PRICES HEADED OVER THE NEXT 5 YEARS?

HOMEOWNERSHIP'S IMPACT ON NET WORTH

We at Alaska Home Sellers feel that this is the type of information that buyers in today's world are yearning for.  While there are countless websites to find homes for sale, simply having access to the millions of homes that are for sale across the country doesn't answer the BIG questions that most buyers have.   And that's where we come in...we bring you through the process with an unbiased approach to educate you on what the best moves are for you based on your individual goals.

There is still plenty of time to grab a cup of coffee and spend a few minutes educating yourself regarding the 2014 real estate season.  All the early signs point to a very busy year!

If you would like us to mail you a copy, simply give us a call at (907)352-1828 or send us an email to Greg@AKHomeSellers.com and request "2014 Winter Buyer Guide".  

 

 

5 THINGS THAT YOU PROBABLY DON'T KNOW ABOUT VA LOANS

There are 5 things that you probably don't know about VA loans according to a blog post that I recently came across.  But I am going to add in a 6th because of it's importance...and with 10% of Alaskans being retired military, there are a lot of VA loans that are used to buy Mat-Su Valley real estate.  

This is a link to the blog post that I came across that very well summed up a couple of the myths regarding VA loans that many consumers have. 5 Things that you probably don't know about VA loans.  And while those 5 are quite valid, I think that there is a 6th thing that could apply here in Alaska as well with the high amount of disabled veterans.  And #6 could be one of the most important of all.  Did you know that if you have a service-connected disability of 10% or higher that you are exempt from paying the VA funding fee?

If you are an active member of the military or are a retired member of the military and are contemplating buying real estate in the Mat-Su Valley of Alaska, we work with competent lenders that can review your present financial position to analyze what loan program would work best for you.  

VA Flow Chart from Hawaii VA Loans

You can always visit our website to obtain an enormous amount of information on Alaska real estate.  You can shop for current homes for sale here or if you are curious as to what the value of your home is in today's rapidly heating market , you can fill out this short form to obtain an approximate idea from us.

We at Alaska Home Sellers feel that there is something BIG about to happen this year here in Alaska real estate!  We featured a post about it yesterday WILL 2014 PROVE TO BE THE YEAR OF GROWTH?.  

Stay tuned for further updates as this begins to unfold...

Greg



 

WHERE ARE INTEREST RATES HEADED IN 2014?

Where are interest rates headed in 2014?  That is one of the questions that we are often asked and it isn't an easy guess.  At Alaska Home Sellers we keep a watchful eye on not only what the local real estate market is doing, but combine it with forecasts from many local, state and national economic and financial reports to help our clients to better understand what it all means to our clients.  We do not have a crystal ball as to what the future holds, but we like to keep our customers aware of the factors in the marketplace that could have a bearing on their decision making process.  

The following information was pulled from a real estate blog that we watch:

"Most experts are calling for an increase in mortgage interest rates in 2014. However, we believe the increase will be more dramatic than is being projected. We believe rates will be closer to 6% than 5% by year’s end.

The Fed announced last month that they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the real estate experts have been warning of this likelihood over the last several months.

Above are the most recent projections of where rates will be at the end of 2014 by the four major agencies. However, we believe that the government is not afraid to shoot right past these levels.

Doug Duncan, chief economist for Fannie Mae, this past summer announced: “I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.”

And Frank Nothaft, Freddie Mac VP and chief economist, at virtually the same time explained:  "As the economy continues to improve, we expect to see continued upward movement in long-term interest rates… At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”

Only time will tell. However, we feel that rates will be in the 5.75-6% range by year’s end."

Our personal opinion at Alaska Home Sellers is that there are monetary policies in place at the Federal Reserve that will keep mortgage interest rates at or near their current levels for much of the remainder of 2014, and would be very surprised to see them hit the 5.75-6% as stated in the blog.

As a Residential Finance Consultant (RFC) we have the tools to evaluate your personal situation to help answer the big questions:

• How's the market?
• Should I wait to sell my house?
• Is now the right time to buy?

To obtain a customized report created with your specific goals, give us a call at our office at (907)352-1828.  To find out an approximate idea as to what your home's value is in today's market, fill out this short form.

We have a tremendous amount of information on our website at www.AlaskaHomeSellers.com.  You can find information on communities, local schools, etc on there.  


We help clients understand the tax advantages, financing alternatives, and investment aspects of home ownership and why now is an incredible time to buy!

http://alaskahomesellers.blogspot.com/

ALASKA BOOMERANG BUYERS ARE TAKING AIM AT THE HOUSING MARKET

Alaska Boomerang Buyers will be taking aim at the housing market over the next 2-3 years and if you aren't familiar with the term, you will soon start to hearing more and more about it.  The impact of the Boomerang Buyer is we are seeing a strong Seller's market here in the Mat-Su Valley and the inventory supplies are low in the most popular price ranges.  

For current information on homes for sale in the Mat-Su please click Mat-Su Homes for Sale or if you would like to find out how the Boomerang Buyers entering back into the market can impact your home's value, Click Here and fill out a short form.

A "Boomerang Buyer" is someone that has lost a home through the foreclosure process or other credit damaging event, and is working on repairing their credit (and in many cases already has) and wants back in to the home ownership arena.  The following illustration is from AfterForeclosure.com and highlights where we are currently at in the recovery process for those buyers and is an absolute bright spot for the real estate market in the coming years.  

There is also a very informative article on their webpage that you can read here 2014 Needs the Boomerang Buyer.  

Why do we at Alaska Home Sellers feel that it is especially applicable here?  We have seen an influx of in-migration into the state over the last few years as the employment opportunities here are greater than where they are moving from.  Many of the residents that have moved here over the last 3-5 years did so to seek a better financial environment, but due to the financial hardship where they were at either have a foreclosure, a short sale, or a deed-in-lieu of foreclosure and have been forced to rent once they arrived here.  

For many of our new arrivals, they fit the above illustration to a "T" and we are already starting to see evidence of them coming back into the housing market.  Something that the illustration doesn't address is how they will view the current interest rates.  Don't think for one minute that it went under their radar when interest rates were around 3% a year ago!  But for many, they were helpless to do anything due to the prior blip on their credit.  If you also think back to where we were at in 2006 when the housing market started it's collapse, interest rates were around 6.5%.  At 6.5%, it was still well below the 40 year average, but yet it's nearly 50% higher than where they are at today.  The following graph represents a snap shot of mortgage interest rates dating back to 1971 from Freddie Mac's Primary Mortgage Market Survey and compiled by www.calculatedriskblog.com.

What does all of this all mean?  

We are convinced that not only did we see a substantial increase in the number of transactions last year in the Matsu Real Estate Market, but it was also combined with a healthy 2% increase in average pricing.  We feel that as the Boomerang Buyers continue to gain financial traction, that they will put even further downward pressure on the declining inventory levels locally, creating an even larger increase in pricing in 2014.  

We also know that there are buyers that opted out last year thinking that mortgage interest rates were going to stay around where they were, and hoped they might even go lower.  But that have now realized that the "Mortgage Interest Rate Horse" is out of the barn and may be nearly impossible to put back in.

You can obtain real estate market information on the various communities in the Matsu Valley in Alaska by visiting this link Wasilla, Alaska Housing Market Insider Data.  Based on the last quarter of 2013, it appears that the trend is clearly toward higher pricing in 2014 as you can see by the illustration below.  Once there you can enter other zip codes in Alaska that you would like to obtain similar data on as well.

We see some definite trends starting to emerge as we hit the 2014 season and welcome you to come back to gain valuable local information presented in a logical format that you can use to determine what the best options are for you.

For current information on homes for sale in the Matsu please click Matsu Homes for Sale or if you would like to find out how the Boomerang Buyers entering back into the market can impact your home's value, click here and fill out a short form.

You can visit our website at Alaska Home Sellers or call our office at (907)352-1828 to privately discuss your real estate goals.

   

TO SELL...OR NOT TO SELL...THAT IS THE QUESTION

To sell...or not to sell...that is the question.  There hasn't been a period in my 20+ year history as a real estate broker where potential selling clients ask that question more then they have in the last 2-3 years.  Not necessarily in the 'Shakespearean' sense, but some variation of it.

In today's world it's not uncommon to find 2 completely opposite, contradictory opinions on the state of the real estate market on the same day, and in the same newspaper or news program.  And when that happens, the resulting effect is mass confusion for anyone that is thinking of buying or selling.  The following illustration from CoreLogic is a good example of it.  Reading the left hand side might lead one to believe that the current real estate market is pretty dire.  But if you continue onto the right side, it starts to look better on the top half.  But it isn't until you get to the bottom right hand corner, that you see that there is only one state ahead of Alaska as it relates to the number of homes with the highest percentage of having some equity...meaning that the home is worth more today than what is owed against it.

Sherri and I view our roles a little different than many others in the industry in that rather than putting a 'hard sell' on a customer to buy something, right now, today, our approach is more like an adviser rather than a pushy real estate agent.  We believe that while it is important for a client to know and fully understand what is happening in the local real estate market, it's when we then combine that knowledge with an overview as to what is happening in the national and world wide financial worlds, teamed with the local and statewide economic forecasts, that all of these factors have a cumulative impact on the client's decision making process. 

In case you might have missed it, the stock markets have blossomed since the crash in 2008 and the DOW has hit new record levels multiple times over the last year.  Many of the reports of the real estate market over the last few years have often been portrayed it in a negative light.  But the following graph from MSN Money.com and Case Shiller, illustrates how it has fared relative to the stock markets over the last 13 years.

And the National Association of REALTORS® recently produced a graph illustrating what they are projecting for the coming year.  

 

Because there are literally countless real estate websites that have information on homes for sale, it becomes completely overwhelming for most consumers.  That's why we focus on providing advice and counsel for the really big questions that our clients have that aren't so easily found on-line.   

We've found what most clients really want is someone who can...

1.  Analyze all the available information

2.  Connect the dots and let them know if now is a good time to buy or the right time to sell based    on their goals

3.  Take the time to explain their options—simply and effectively
 
Our approach is actually quite simple.  Overall, information being readily available (without context or understanding) causes confusion...and that’s when people seek out professionals. Whether it be a doctor, lawyer, or a real estate professional, for a thorough analysis of the information based on their unique situation.  Because of the wealth of information available, we believe people are yearning for expert advice...tailored to their individual needs and goals, and not some canned "cookie-cutter" reply.
 
If you feel this type of information is valuable, make sure to subscribe to our blog and keep checking back as we will be posting much more over the coming weeks as we head into the busiest season of the year.  For more, you can visit our website at Alaska Home Sellers, "like" our Facebook page here, or simply call our office at (907)352-1828.


Let us know what your "big" questions are...we're here to help. 

Double Rainbow in January in Alaska??!!

Who would have imagined a brilliant double rainbow in January in Alaska?! 

We have experienced a WILD day of weather here in southcentral Alaska.  When most people think what Alaska would be like in January, these are hardly the images that you would see in your mind's eye.  But it is exactly what we experienced this afternoon around 4PM. 

We woke up to temperatures in the upper 40s and rain.  Around 2:30 the clouds started to lift, and then just before sunset this evening, the break in the clouds unveiled a brilliant double rainbow.

Not sure how many rainbows Alaska experiences in January, but there probably hasn't been that many!

If you have been dreaming of moving to the Matsu Valley in Alaska to be able to experience the most incredible sights imaginable, we can help.  Visit our website at Matsu Homes for sale to start your adventure!

To continue to see beautiful Alaska images, keep checking our blog.  The best is yet to come!