Real Estate Information Archive

There seems to be more activity in the market right now.  I've noticed that there are more people visiting my website.  Homes are getting more showings.  And three homes I had listed are now under contract.  these sellers are very happy they listed their homes now before the busy summer months.

I'll be out this afternoon visiting with one seller and then showing a couple a home in Wasilla, they're considering purchasing.  There is optimism in the air.  Even Wall Street had a good day, stock market closed in positive territory today.

There is currently 94 homes available for sale in Eagle River; however 22 of those homes are under construction and not ready to move into at the moment.  That leaves 72 options.  Last February 26 homes sold, and then in March 80 homes came on the market, and in April/May 184 homes came on the market.  103 of those homes sold, but that a lot of competition. 

My advice is get started now.  You will most likely get the price you want for your home, if its clean and ready to sell.  Homes that don't shine will be sitting on the market in September.

Be ready, call me today for a free consultation.

Daily Real Estate News | Friday, January 24, 2014 The housing market has been experiencing a “healthy recovery” over the past two years, with home sales last year rising to the highest level since 2006, according to the National Association of REALTORS®' latest housing report. “Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates, and a large pent-up demand driving the market,” says Lawrence Yun, NAR’s chief economist. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”Existing-home sales rose 1 percent in December 2013 compared to November and reached a seasonally adjusted annual rate of 4.87 million.Existing-home sales for all of 2013 reached 5.02 million sales, 9.1 percent higher than 2012, and the largest rise since 2006 when sales were at 6.48 million at the close of the housing boom, NAR reports.  Home prices were also on the rise in 2013, up 11.5 percent over 2012, with a median existing-home price of $197,100 last year compared to $176,800 in 2012. It was the strongest gain in home prices in a year since 2005, when home prices rose 12.4 percent, NAR reports.NAR President Steve Brown says that with job growth expected this year, home sales should hold despite rising home prices and higher mortgage rates.“The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” Brown says. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”Housing Recovery Regional SnapshotHere’s a look at how existing-home sales fared in December and for the year across the country:Northeast: Existing-home sales fell 1.5 percent in December but remain 3.2 percent higher than December 2012. Median price: $239,300, up 3.6 percent from year ago levelsMidwest: Existing-home sales dropped 4.3 percent in December and are 0.9 percent below year ago levels. Median price: $150,700, 7 percent higher than December 2012.South: Existing-home sales rose 3 percent in December and are 4.6 percent higher than December 2012. Median price: $173,200, up 8.9 percent from a year ago.West: Existing-home sales increased 4.8 percent, but are 10.7 percent below a year ago. Median price: $285,000, up 16.0 percent from December 2012.By REALTOR® Magazine Daily News

Current inventory here in South Central Alaska is at the lowest point I've seen in my ten years of real estate.  In any given price point the select is very slim for buyer.  I remember when I moved back to Alaska in 1999, I encountered a similar market.  I was only able to look at a dozen homes that fit my criteria and budget.  I looked from South Anchorage to Chugiak to finally find a home.

This creates certain market dynamics that would lead a seller to believe they can get whatever they want for their home.  This is somewhat true, but they should be cautious.  Buyers can only afford so much, and interest rates are rising; a full point over last year.  This takes $30,000 out of a buyers buying power at the $300,000 range.

So is the market going to go up in value, but down in the number of homes sold? Yes, that is what is going to happen for some home owners selling.  Many will try to raise their asking price too high. The smart seller will price their home approximately $10,000 below their immediate competition.  This makes their home look very attractive to prospective buyers, and usually results in a quicker sale.  the seller that does not do this, has their home sit on the market as new smart home owners come on the market just below them.  These home usually attract the buyers currently in the market, and sell rather quickly as well.

My advice is not to get greedy.  It's better to sell quickly at a lower price then hold out for that buyer that will pay your price.  If you can find them.

 

Dear Eric:

Thank you for contacting me regarding the 2010 Census and its effect on rural housing programs in Alaska.  I appreciate hearing from you and having the opportunity to respond.

S. 3240, the Agriculture Reform, Food, and Jobs Act of 2012 (2012 Farm Bill) passed the Senate on June 21, 2012.  It included a bipartisan amendment that would allow for the extension of the "rural area" designation through 2020 for any community that would otherwise have been disqualified by the 2010 Census.  Under this amendment, a community is eligible for the designation provided that its population was below 35,000 at the time of the 2010 Census.

  The 2012 Farm Bill is currently awaiting consideration in the House of Representatives. Should the Senate take further action on this legislation or similar legislation affecting rural housing programs in Alaska, I will certainly keep your comments in mind.  Again, thank you for contacting me.     

United States Senator

http://murkowski.senate.gov*

Mid Summer is drawing near; in the lower 48 the temps are soaring towards record highs, here its on the lower end of the average temperature range, hanging in the mid 60's.  Politics is about the same here as in the lower 48, all the politicians can't get along and nothing appears to be moving forward.

Now is the time to get things done, there so not seem to be many large scale construction projects underway at tis time.  New home construction appears to be doing just fine, however I do anticipate a slowing of this in the coming months.  Interest rates have stayed low, allowing buyers to buy homes.

but what will come this fall?

  In 1998 I was asked how the Alaska economy would fare, and I thought it would take 4-5 years before we saw substantial growth.  I believe we are getting closer, but may have another year or two to wait before we see substantial growth increases.  There are more sales, and many of these sales are in raw land, which indicates people want to build more homes.  These are good indicators. 

I've spoken with many people in the construction and companies in oil production and the consensus is that the state is not doing what it needs to.  We need to be proactive.  Sometimes you need to build for the future.  Capitol improvement projects to be undertaken to build this great state.  We have the money to do it and construction costs are not going down.

Now is the time to build for the future

It is mid summer and Alaska is at the cross roads.  Which direction are we going?

I would love to hear what you think.

What great weather we had this weekend.  I hope that everyone was able to enjoy the sunshine.  While I was out and about I saw lot of people visiting open houses in this weekends Spring Parade of Homes.  The weather was perfect to get out and see these beautiful homes.

There was so much to do this weekend; with the sun out the parks were full.  Area bike trails were alive with activity.  When the weather cooperates like this, we are reminded about how beautiful Alaska is.

This week will be full of activity as homeowners begin to pick up their yards after the winter snow melts away.  Its time to give the yard a good raking and clean out the flower beds.  Spring flowers should be showing up in some beds already, and we will see more soon.  This is a great time to be outside enjoying the warm weather.

Summer will be here shortly and there will be no time for yard work, too many other activities to do.  So, if you are thinking about getting a new home now is the time.  Interest rates remain low, and hopefully will remain there for another couple of months.  Inventory levels of homes remain low, however there are some very nice homes available a great prices.

Spring is here, and remember to get out there and enjoy it!

EAGLE RIVER COMMUNITY COUNCIL

13135 Old Glenn Hwy., Suite 200

EAGLE RIVER, ALASKA 99577

AGENDA

Thursday, March 17, 2011

12001 Business Blvd., Room 170 conference room

(Next to the Eagle River Library)

Call to order

– 7 PM

Guest Speakers

Bill Johnson with Anchorage Tomorrow – upcoming bonds  MOA Assembly update (Ossiander/Starr)

Assembly/Legislative Updates

Legislative update (Sen. Dyson & Giessel and Rep. Fairclough & Sadler)

New Business:

Open

 Old Business:

Membership drive to increase participation and fill vacant positions st Wed. at 6:30pm, same room.

Reports:

Meeting Minutes: Brian Fay

Treasurer: Michael Foster (acting) $258.75

Parks & Rec. (3 yrs): Brian Fay (May 2012)

Road Board (3 yrs): Michael Melielo (June 2013)

Adjournment

It's time to get our economy producing!  This was the message at the CER Chamber of Commerce meeting today.  "Make Alaska Competitive" Coalition was the main speaker and the forum was sponsored by BP.

The message was that Alaska had increased taxes by so much in 2007 that Alaska was no longer a place to develop.  Based on the information they provided it appears that they're correct.  One excerpt from their handout reads as follows:

• We a NOT competitive compared to other areas
  • When oil prices are $100 a barrel, the total marginal government take in Alaska is 82 percent.  In Alberta, it's 55 percent.  In the Gulf of Mexico it's 43 percent.  Alaska is simply not competitive under ACES. (source: Roger Marks)

I have a really hard time with these numbers, but no one gives all the information, so I have included a copy of the tax rate:

The formula for the total tax rate, including the base rate and progressivity is:

0.25 + ((Net per barrel value - $30) X .004)

ACES also contains a 20% tax credit for capital costs, with potential greater credits for exploration depending on location. For example, let's assume the following:

• 100 barrels sold on the US West Coast
• ANS West Coast price of $50
• Transportation cost (pipeline and marine shipping) of $5
• Upstream (exploration, development, production) costs of $20: $10 capital and $10 operating
• No royalties (for simplification)

The net value of the oil would be:

100 X ($50 — $5 — $20) = $2,500

The per barrel net value would be:

 $2,500 / 100 = $25/bbl

Since this is less than $30/bbl there is no progressivity and only the base tax rate would apply. Thus the tax before credits would be:

.25 X $2,500 = $625

The capital credits would be:

.20 X $10 = $200

The tax net of credits would be:

$625 - $200 = $425

Now let's say the price of oil goes up to $70.

The net value of the oil would be:

100 X ($70 — $5 — $20) = $4,500

The per barrel net value would be:

$4,500 / 100 = $45/bbl

Since this is more than $30/bbl there would be a progressivity surcharge. The surcharge would be:

($45 — $30) X .004 = .06

Thus 6% would be added to the base tax rate of 25% for a total tax rate of 31%. Thus the tax .31 X $4,500 = $1,395

The capital credits would be: 

.20 X $10 = $200

The tax net of credits would be:

$1,395 - $200 = $1,195

Now if you can understand all this I am very proud of you.  What I do understand is that as the price of a barrel of oil goes up, so does the tax rate.  Only it is not prorated like our income taxes.  Alaska gave the oil companies a great rate and even a free pass for many years and oil production has dwindled.  Now prices are finely high enough that they can really make money.

Alaska needs a fair share of this wealth, but what is fair.  Talk to your politicians about what you think is fair.  I am no going to say how to fix this, but I do think it is broken.  Don't misunderstand me though. I think that Alaska should get more then we did before, but maybe not all of it.