Real Estate Information

What is happening out there?  This is what I was asking myself yesterday.  Interest rates did a little dance yesterday. They didn't just jump,they jumped twice.  The good news is they stayed stable today.

Now is the building season for new construction.  My second question was how is this going to effect the new homes we're going to build?  Steady interest rates make everyone happy.  Timing the market is not a good recipe for success.

I spoke with another business owner in town about the small jump, and he said that maybe he should have bought another home and used it for a rental.  I realize there is a lot of uncertainty in the economy, but the housing market in Eagle River Alaska has remain steady.

If you are trying to time the market, don't.  There are good deals out there and the interest rates are pretty low.  Waiting for that better deal will only cause you to miss out on the good deal that is available now. 

I think that if we worry to much about what we may lose, we will never get a chance to live.  You have to make decisions, you have to make choices, you cannot live on the sidelines.  How many people do you know that missed out on that great opportunity?

I am not saying take risk, just don't be paralyzed by the unknown.  Life is all about the unknown, make good decisions and move on..I mean move in.

We have finished the 1st quarter of 2009.  How has it effected you?  Did the press influence how you spend your income? 

At a local level my first impression of the economy is that it is good.  Do you agree? or Disagree?

In Eagle River Alaska the economy seems good, and the real estate numbers reflect that statement.  The number of homes sold are up 15%.  Our office was up 152% in the first two months of the year, and march was a plus month but not by as much.  When I read the different publication, Alaska Journal of Commerce, the Petroleum News, and The Anchorage Daily News, I get a different sense. 

There are good positive stories that show we are moving forward, but there are more spelling out the gloom.  The best number I've seen is only a slight up tic in unemployment, and a drop in Foreclosures.  The number of homes on the market is less than last year and the market time is staying pretty consistent.  We have seen a slight drop in value in some price ranges and this is expect with some of the deflation we've seen.

The Stock Market is moving up and I am glad to say I have seen positive growth.  As spring quickly approaches the out look is good.  There will be good deals, and interest rates are at an all time low.  The low interest rate are allowing home owners to lower their payments.  The real estate market appears stable for now.  A bright spot is the new construction segment.  as inventory levels there is a small amount of renewed interest in building homes.  Lot sales are up and there are several new homes under construction in Eagle River.

All in all I believe the the sky is not going to fall.  We all have to work a little harder, spend our money more wisely, and save a little for the future.

"How is the Real Estate Market?"  This is a question you probably ask  or hear on a regular basis.  I know this is a common topic of discussion at any gathering.  Everyone has a different opinion, but what is the reality in the world of realty?

One must first remember that real estate is local, which means that every area, city, neighborhood, and street is different then another.  There are many factors that will effect a local market, and many markets are effected by the same national influences.  The number of jobs being saved or lost will definitely affect the stability of a local market.  Interest rates may hurt or help, however today they seem to be close to an all-time low.

I believe that there are two people that will influence the market the most.   One is the buyer and the other is the seller.  Confidence in the market will sway both of these parties.  If the homeowner has no confidence then the will place their home on the market just to get out, because of a fear of loss.  They will try to save what investment they may have in their home.  If they have confidence in the market then they will hold onto their home because they know that in the long run, values will go up. 

Lets look at this perception, good or bad.  If a homeowner has a fear of loss, this may introduce a tremendous amount of stress into their lives.  They may not make rational decisions, and one of them is do they really need to sell at this time?  The flip side is the hope for gain, can they sell their home and take what equity they have and step up to a better home that they will live in for many years to come.  As we know interest rates are lower and a seller can leverage their equity into a home the better suits their long term needs.

How do buyers react to the perception of a good or bad market?  Buyers are watching the news just like everyone, else and unfortunately their isn't a special buyers channel that only gives them good news.  Many buyers may have the perception that once they spend their money it will evaporate like many of our 401k funds.  Some buyers may need to purchase a home and are being very cautious.  They want to look at every home on the market and they are looking short term instead of long term.  Buyers need to be sure of their needs, measure their buying power carefully.  They days of excess appear to be ending, but old habits die hard.  I still see buyer trying to maximize their purchase.  There is a movement to more efficient homes and better locations.  Buyers are trying to be smart about their purchase.  This ultimately slows down the progress, however homes are still eventually bought.

I feel that buyer and sellers really need to look at their purchase/sales and determine if this fits their long term life goals.  Homes are a necessity and while they can be a positive investment, a home is an expensive liability.  Housing is needed by all, so there will always be buyers and sellers. 

The housing market is is good and bad, and in our local market it is good and bad.  Some homeowners have to sell and are forced into stressful situations.  The good news is that the homes on the market in our area are being absorbed.   Depending on the price range that a home is in, condition of the home, and the all important location determine how quickly a home sells. 

The market can be good or bad, just like a glass of water can be half empty or half full.  It is your perception that matters.  I will continue to be positive, and help buyer and seller that are either in a bad situation or a good situation.  The ulimate goal is a good outcome for both parties.

We have seen several pending sales in recent days.  This means agreed contracts.  Our inventory levels are dropping as is expected this time of year.  The good news is that there are less homes on the market now then at this time in each of the two previous years.

The selection for buyers is still good, but it is dwindling.  Interest rate dropped to 5% this week.  This means that the buyer can get a better payment than last month, or they can buy a little more home.  Interest rates have dropped over 20% since earlier this year.

The weather may be cold out there but the market is warm in Eagle River, Alaska.

Call me today for more information.

Eric Bushnell- 907-360-7471