Real Estate Information Archive

For much of the country it is still fall, and in some parts the eternal summer blazes on.  Here in Alaska fall has been gone for at least a month. Winter was not roaring in, but it did last night and appears that it may return again tomorrow with an additional 4 inches of snow.

Now winter is here it is time to stop selling real estate, close the office and hibernate until spring.  See ya next spring!

Wait! Now I'm sounding like the national talking heads when their talking about the economy.  No one should buy anything the economy is in the toilet.  Please hold my hand because I think life as we know it is over.

Come on give me a break.  The economy took a hit and it has come back steady. It's not roaring but its chugging right along.  So is the housing market; just because we have some snow and winter is settling in is no reason to hibernate until spring.  Interest rates are at an all time low.  You can get a great home in this market.  There are some great deals and there are some great home that you will have to pay the asking price.

Now is a great time to buy a home, just be careful as you walk up the steps.  And if you're thing about selling, inventory levels are low, put your home out there and get it sold. 

By the way, make sure you shovel the sidewalk and please turn on all the lights.

We are excited to offer the 13^th annual Prudential sponsored Points of Light Youth Leadership Institute for students grades 8-12. The institute will be held March 8^th-12^th over Spring Break. This program is a 40 hour community leadership training program for teens who, want to learn leadership skills and improve themselves, their schools and make the community a better place to live.

 If you or someone you know, know a student who would be interested in applying, please contact Sabra at ext. 7295 for an application or click on the attached information packet & application. The deadline is February 26^th. Or for more information on PYLI visit www.spirit.prudential.com

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.

Have you been waiting to see what's new in home building?  What are the builders and designers using this year?  Will the homes be as nice as what you see on TV at HGTV?

The answer to these questions and many more will be answered this weekend September 26th, 27th, and 28th.  It's time for the annual AHBA Parade of Homes.  There will be several homes showcased this year in Eagle River.  We have two homes in Powder Ridge.  Nolan Homes, LLC. will be opening a wonderful home on Ezi View Circle.  This will be the last time to see this amazing property, unless you're invited by the new owners.  They move in next Wednesday.

I would invite you to come by and see the Nolan Home in Powder Ridge.  While there take time and look around the subdivision to see the available home sites.  Now is great time to build a new home.  Inflation may start taking hold as the country begins its slow recovery from recession.  Interest rates are holing low, and if you want to sell you existing home there is very little competition on the market.  See my previous posts on this subject.

Come by and visit, Saturday 12-6, Sunday 12-6, and Monday 5-8.  Please vote online at AHBA.net for the people's choice award.

What's happening in our market this week?

The weather in South Central Alaska has continued to be mild and with very little rain.  A nice fall, with lots of color in the hills.  As you all know I was not here last week, but I did review the number for the area and I think that many people were out enjoying the extended Labor Day weekend.  Here is a breakdown of what happened.

Eleven (11) new homes came onto the market, six (6) homes went under contract (pending), and eleven (11) homes transferred title (closed).

This weeks feels about the same, although I do not think there will be as many new listings.  The rental market also continues to be very tight, with a very limited supply of homes to choose from.  Current inventory in Eagle River of homes for sale is just 164.  At the end of August there was 184 homes available, and last year at the end of August there was 221 homes available.  This places limitations on perspective buyers.  When you extract the un-built new homes it leaves just 133 homes across all price ranges.

If you are thinking about selling a home, now would be a great time.  Make sure that your home is in excellent condition and it will most likely sell quickly when price accurately.

If you have not signed up to receive new listings updates please visit www.eagleriverhomesforsale.com.  You will receive updates for Homes, land, and recreational property based on the selections of your choosing.

Sorry I have written anything in the last week, I was up north or Delta Junction on the Good Paster River.  It was quite the adventure and a great trip in a very beautiful and remote part of Alaska.  According to my estimates we made it about 75-80 mile upstream from the Big Delta Landing on the Tanana River.  

We started out last Saturday evening and drove 320 miles north to Big Delta and launched our boat into the Tanana River.  From there we travelled 5 miles upstream in the fog to the Good Paster River.  This was fun and thought I would be able to find the mouth of the Good Paster fairly easily with the help of my GPS.  Unfortunately my GPS chart plotter had no record of the Good Paster in the memory file.  I had reviewed the google maps online so this helped me find the mouth.

The next stretch of river was very twisty and with 150 gallons of fuel on board we made our way up stream.  A little over 2 hours later and 45 gallons of fuel lighter we made to 6 miles above the south fork and found a nice gravel bar to camp on.  We set up camp there and got comfortable.  It was truly beautiful and very hot, it must have been 65 every day.  

The next couple of days we ran up and down the river, some times in the river and sometimes, like the day we ran into a raft coming downstream, we ended up in the wrong channel and high and dry.  In the week up on the Good Paster the river slowly dropped a little over a 1.5 feet.  It got really shallow.  On the way out we rubbed the bottom several times, and there were miles of river that we ran in only 3 to 4 inches of water.  One mistake and it was going to be a long was before we could get back on step.  

I learned a lot about what my Wooldridge could do in shallow water situations, as well as my driving skills.  At least one high and dry espisode was due to sun glare and missing the ripples in the middle of the river. Oh well, it was a lot of fun and what was supposed to be a hunting trip turned into a great camping trip.

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.

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.