Real Estate Information Archive

Local real estate market bucks the trend

By DARRELL L. BREESE
Alaska Star

Nationally the economy is languishing in a recession, as foreclosed homes flood the market. And the picture is not much prettier within the state.

Moody's Adversity Index, released July 17 tagged Alaska as "in recession" since April. The unemployment rate for Alaska is at 8.5 percent and in Anchorage it is at 7.3 percent.

Given all the economic indicators one would assume that the local real estate market is struggling, but that is not the case according to a group of local Realtors.

"The local market has remained fairly stable," said Eric Bushnell, "All in all the Chugiak-Eagle River real estate market is balanced and doing better than other parts of the state."

Statistics from the Alaska Multiple Listing Service, which records all properties for sale by Realtors in the state, shows there has been little change in the local market since the decline of the nation's economy, especially in the area of median priced homes, between $250,000 and $350,000.

"There has been a slight reduction in the number of sales in that price range," Bushnell said. "But the homes are still selling."

The key indicator of the vitality of the housing market for Bushnell is the amount of supply.

"National experts tell us that a market with a four to six month supply of homes represents a balanced market," he said. "Anything more than that indicates it's a buyers market. A supply less than that means it's a sellers market."

The current supply of homes on the market in the Chugiak-Eagle River area is at 4.75 months. Of the 196 homes available in the local market at the end of July, there were offers pending on 21 of them and 38 home sales were completed within the month. By comparison, Parker Colo., a community with a similar population to the Chugiak-Eagle River area, has 900 homes on the market.

Comparing the current local numbers to previous years reveals a slight dip in the market, but nothing as drastic as some communities around the state and country are experiencing. In July of 2008 there was a 4.1 month inventory of homes for sale in Chugiak-Eagle River and 53 sales closed; in July 2007, at the high point of the real estate boom, there was a 3.84 month supply of homes and 68 homes sold.

"We're not seeing the homes flying off the market like they did a couple years ago," Bushnell said. "But the homes are still selling."

The homes priced right and presented in a proper manner to potential homebuyers are still moving fast. One case is a home listed for sale by Cindy Wilson of Re-Max of Eagle River. The home received four offers within the first week on the market.

Compared to other parts of the state, the local are especially striking.

In the Matanuska-Susitna Borough, there is a 6.5-month inventory of homes; Anchorage has an 8.7-month inventory; and the Kenai Peninsula has a 16-month inventory. In July, Anchorage had more than 1,000 homes on the market and only 67 pending sales.

"Having such a balanced market compared to the rest of the state is good for the local homeowner," Bushnell said. "It means homes hold their value, which brings stability to the local market."

What is it that makes the local real estate market so appealing?

According to Bushnell, it is because of the golden rule in real estate.

"Location, location, location," he said. "The Chugiak-Eagle River area is a true bedroom community. But it's also a great place to raise a family and experience Alaska."

Both Bushnell and Wilson credited the influx of military families, caused by an increase in troops at Fort Richardson, as one of the keys to the markets overall health.

Wilson also pointed to the ever-fluctuating price of gas as a key element to the local housing market.

"People who were looking in the Mat-Su Valley three years ago are now looking in Eagle River," she said. "As gas prices go up, more people move closer to where they work - Anchorage."

Other key attractors for homebuyers are the community and small-town charm of the area.

"People like to live here because they know their neighbors," Bushnell said. "Whether it be from a PTA meeting or a kids hockey team you get a sense of belonging that is difficult to find in Anchorage."

Bushnell speculated that if there were an increase in certain amenities locally, such as entertainment outlets and restaurants, the market would be even stronger than it is today.

Reach the reporter at darrell.breese.@alaskastar.com.

This article published in The Alaska Star on Thursday, August 6, 2009.

Here is the Eagle River Real Estate market update for this week.  Last week we saw continued strong activity in our local real estate market.  17 homes pended (accepted contracts), while there we only 14 new homes listed for sale.  Current inventory levels continue to drop, and I hear from other Realtors that buyers are having a harder time finding what they're really looking for.

Interest rates have remained steady, with minor ups and downs.  Current rates range from 5% to 5.375% for 30 year mortgages.  There are several new rules in the lending world that make it a little more time consuming to purchase a home.  The good news is that there is plenty of money available if you wish to buy. 

If you are considering buying I would do it now before the interest rates go up.  With the economic stimulus monies floating around most economists believe it is only a matter of time before we some inflation and interest rates have to go up.

Better to get what you want now, while you can afford it.

There is only one week left before the kids go back to school.  I have been trying to plan activities for all of us.  My wife is off to Brazil with a group of friends from the Wasilla and Eagle River Rotary (Rotoplast, helping kids with cleft lips and pallets).  My daughter is off with her friends in Cooper Landing floating the Kenai River without me.  go figure.

So that leaves me and Blake, what can we do me and my six year old son.  Well lets pack up the  boat and head to the Deshka River, I hear the Silvers are in.  So we headed up Saturday night and fishing was a little slow, but around 7:30 we finally got a taker and Blake caught his first salmon.

We camped overnight and we're back at it in the morning.  We caught three more fish.  Blake and I had a great time. Sunday was sunny and there was very little wind.  More fish too.

Another great weekend.

Taking a look back at last week, one would think that the market had gone crazy.  21 homes pended in the Eagle River and Chugiak areas.  6 went under contract in Chugiak, this is a 12 month high for one week. 

Interest rates have fluxuated up and down but for the most part stayed in the low 5's for a 30 year fixed conventional loan. 

There are changes around the corner and you do need to be aware of them.  If you will be involved in a real estate transaction in the near future, pay attention.  The mortgage lenders will be operating under new rules and the title companies will be enforcing them.  Here is a short list of some of the changes.

Once you receive a good faith estimate on your new loan you will need to wait 7 days before you can close.  this means that if you lock your interest rate you may need to wait 7 business days before you can close. 

If the APR changes on your loan, example: some portion changes and it goes up by more the.125% then a new disclosure must be made.  7 more days.

Once the appraisal is in there will be a 3 day review period.  However in some cases this may be waived, although highly unlikely.

This is just a small portion of the changes, and now more than ever you need great communication between all parties.  The average contract closes in approximately 38 days.  I suggest writing an offer with a 45 day time table.  This will give you plenty of time and if everyone is ready early than close early.

If you have questions about these new rule please make a comment here or send an e-mail.

We finished another great weekend and now the weather has started to change.  We have seen some much needed rain.  But how does this effect the local market?

If it sunny everyday then buyers just want to have fun, they go fishing, hiking and explore this wonderful area.  When the weather gets a little cold we see people start to worry about winter, BTW, school starts in one month. 

This means that buyers are going to be seriously looking.  Inventory levels, homes available for sale, are dropping.  This is a good thing.  Interest rates were down again today. 

The recap for Eagle River is this, 8 homes pended, and there were 6 closing.  several of these homes were in the $600,000+ range.  The average home price pended in the last 30 days was $369,000.  That is moving up from the first half of the year.

All in all the Eagle River real estate market is doing well, but then Eagle River has always done better than other areas.  Eagle River is the place to live.

Here is a brief over view of the Eagle River Real Estate Market.  In the last week we experienced some very nice weather, and the annual bear Paw festival was underway.  What we saw was a slow down in sales as well as new listings on the market as people took time out to have fun. 

The overall inventory levels fell slightly as fewer homes came on the market and nine homes closed successfully.  there have been several pending properties this week and I see many Realtors out showing property. 

The strongest sales activity has been under $350,000.  However, I have seen several buyers looking at homes in the upper $400,000.

Interest rates continue to be steady, ranging from 4.75% for 15 year mortgage to 5.375% for a 30 year mortgage.  Please contact Aaron Gray at Homestate Mortgage, (907) 689-6456, for more information on available rates and programs.

The Eagle River real estate market continues to hold steady.  Please fill free to make comments, or call me at (907) 360-7471 with questions.

What does the Eagle River Bear Paw festival and real estate have to do with each other? Well that is a great question, and for 9 years it has been a way for the Prudential Jack White/Vista Real Estate office in Eagle River to have fun and really impress the visitors and residents of Eagle River.

This is a great time for all. We sponsor a Miss Bear Paw Pageant contestant, enter different events like the Dog and Owner look-a-like contest, Slippery Salmon race, the Slammin Salmon Cookoff, and our favorite event, the Parade.

And We do a parade well. This year will be no different. We have many hours invested into the design of this float and you will need to come see it, and I am sure you will appreciate it. entertaining the folks at the parade is very important. Life is complicated and there are demands placed on us every day. This event takes a lot time, careful attention to detail, a lot of patience while we plan, build, and decorate the float.

It allows us time to stop, not take ourselves to seriously, and have a lot of fun.

Real Estate update for the week of July 6, 2009.

The Eagle River saw an increase in market activity the last couple of weeks.  217 homes are on the market, 15 pended and 6 closed.  4.91 months of supply.

As we enter into the new construction season and saw dust starts to fly through the air, one wonders will we get back to the growth we saw just a few years ago. 

I believe we will see steady growth in new construction side of real estate.  in Eagle River we will see steady growth.  Powder Ridge is seeing several new homes this year.  Nolan Homes, LLC., LLC is almost finished with a a home and there are open houses there each weekend.

Nolan Homes, LLC. is currently marketing 22 new homes in the Powder Ridge subdivision.  There is a myriad of styles and sizes.  Nolan Homes, LLC. is offering two levels of specifications, a standard level which is still a higher level of building specifications, and a Luxury build specification.  The Luxury level includes upgrades such hardwood flooring, granite counter tops, and many other features withing he home.

New construction is moving forward and Eagle River is growing.  Come to Powder Ridge and see the progress.

Life in Alaska is a blast when the weather cooperates, and this summer it is.  Although this last week had a little rain, it was needed and by the middle of Sunday it had subsided.  this was good news for myself and my family.

We took out the boat this weekend and visited the Deshka River.  Fishing reports were pretty dismal, but we though we'd give it a try.  The weather was rainy all morning so we didn't get started until about 10:30.  We launched and headed down river.  It looked pretty slow so we stayed near the mouth.

We did have a coiuple strikes, probably trout messing with our rigs.  Weather was good so we just relaxed and let the lures do the work.  At one point I decided to change lures and put a big Kenai Quicksilver on.  My partners laughed and asked if I was going to try clubbing a fish. 

I tossed the lure out a couple times, not really paying attention when I felt a tug, so I tugged back and this fish tried to pull me overboard.  This fish was really nice, about 40 inches long.  Not sure of the weight, 35-45 lbs.