Saturday, August 23, 2008

Anchorage Real Estate Update

Keller Williams Realty is now home to over 105 of the top realtors in Alaska and is open for business in the Key Bank Building at 101 West Benson Blvd. Suite 503 on the top floor. Gary Keller announced the launch of his new website to help realtors navigate the current market at www.agentmountain.com. Top realtors from all over the country are converging on Austin, Texas this week for Mega Agent Camp, and Masterminds and the release of Gary Keller's new book "Shift". Real Estate activity has dropped off a bit, but still remains healthy as of 8/22/2008. Interest rates are bouncing between 6.5% and 6.75%. It is still very busy, although it does look like we are seeing a few more price reductions than we have been seeing and inventory is rising a bit.Total residential sales as of 7/31/2008 were 1,465 units, compared to 1,618 units last year at this time, or a 9% decline, also the average price decreased from $330,527 to $326,325 for a 1% decrease. Total active listings through the end of July were 3,696 compared to 4,195 at the same time last year, for a 12% decrease. As of 3/31/2008 there are currently 1,168 homes on the market and 553 condos. This is the story for Anchorage at this time. Land prices, building materials and labor, are all increasing at a dramatic rate. Prices are flattening a little, but interest rates are holding, so if you are considering purchasing, waiting is not going to get you a better deal. NOW is the time to buy. Inventory is higher than last year, making selection and pricing more attractive. Based on the numbers, it is still a sellers market, as evidenced by a 5 month inventory of homes. This applies to homes under $350,000. Between $350,000 and $500,000 it is slightly a buyers market, and over $500,000, it is a definite buyers market. It is considered a sellers market under 6 months of inventory and a buyers market at over 6 months of inventory. Anchorage's market is very healthy and homes are still selling. There are more homes on the market which means you have to be in the lowest 20% of your price range on price, and the top 20% in condition. It seems to me that a lot of people would like to sell at this point and take their profits, but fear of being able to afford a replacement is keeping some people in their current home. I have witnessed some of my buyers, that bought in the last few years, cashing out and making a very nice profit on their investment. So real estate continues to be a solid performing asset, when it comes to investments. It is still possibly the best investment one could make! Call me and I will go over the return you can expect in the current market. Now is the best time to sell, and if interest rates continue to climb, it may be the best time to buy as well.