Wasilla Real Estate News, Valley Market Real Estate

Deals Of The Week, Feb 26, 2008 February 26th, 2008

Categories: Deals of the Week

Here are the deals of the week for week proceeding Feb 26, 2008.  Remember the rules…

• 1. Just because I say its a deal doesn’t mean that you should buy it “sight unseen”.  I am only looking at the MLS.  In most cases I am not physically previewing these properties.
• 2. To qualify for DOTW, within the past week the property must have either been newly listed, come back on the market, or had the price lowered.  This is based on the assumption that if a property was truly a “deal” it would not last more than a week on the market. 

These three listings are all brand new listings this week.

• $89,500, older log cabin on more than one acre backs up to borough land in the Chickaloon area.  Listed by Dynamic Properties
• $182,500, 1,507 sq ft, 3 bed 2 bath only 5 year old home off of Palmer-Fishhook.  Prudential Vista Real Estate.
• $209,900, 1,402 sq ft ranch with two car garage in Settlers Bay, built by Sumner Construction.  Listed with RE/MAX of Wasilla

Call me 907 232–7900

Written by Marty Van Diest Please leave a comment.

Monday Morning Market Memo Feb 25, 2008 February 25th, 2008

Categories: Monday Market Memo

Wasilla Real Estate News Market Statistics for this week.  These statistics are for residential single family home sales in the Matanuska-Susitna Borough.  The vast majority of the activity is in the Wasilla and Palmer area but these numbers also include houses and cabins from Talkeetna to Sutton.

I have included the same statistics for this week in 2007.  You will notice that the DOM, (days on the market), are higher and the prices are lower for 2008.  This does show that although our market is still active, it is taking longer to sell a home on average and that selling prices need to be very competitive.

This week we broke a record that was only two weeks old for the fewest closings in a week.  We only had 12 compared to 13 a couple weeks ago.  It was a short week with President’s Day.  Most of the title companies were closed that day and we were coming off of some of the coldest weeks of the month when the contracts would have been signed.  Pendings are normal this week so it will take more time to see if it indicates a trend.

I compared the last six months to the same six months one year ago. 

• Sep 1 2007– Feb 25, 2008.  Total Sales 583, Median Price $202,371
•  
• Sep 1 2006–Feb 25, 2007.  Total Sales 710, Median Price $210,000

So we can say that fewer homes are selling for a little less money.  It appears that the Mat-Su Valley is dealing with the credit crunch by a slow down in sales and no appreciation. 

When we look at individual homes we still are finding that most houses purchased two to three years ago, sell for more today than than they did then.  I have found a couple sales where the price went down, but those are definitely in the minority. 

However, this market changes every month.  As the numbers above indicate, the pressure seems to be pushing down, not up. 

Here is what I found when I took a look at that trend for the last year.

The last 12 month sales sorted by price.

• $500,000 +   22 sales
• $400–500     41 sales
• $300–400    140 sales
• $200–300    571 sales
• $100–200    600 sales
• $100 –           80 sales

Here are the previous 12 months.

• $500,000 +   18 sales
• $400–500     37 sales
• $300–400    154 sales
• $200–300   685 sales
• $100–200   675 sales
• $100 –        104 sales

I think those are enough numbers right now…As Grace always tells me when I run a list of figures by her…”the men, they love the numbers”.

Give me a call if you would like more info on the market or any particular house.  Just call my cell 232–7900, dial the 907 area code if long distance.

Written by Marty Van Diest 1 Comment »

Alaskan Real Estate Lock Box February 23rd, 2008

Categories: Alaskana

I heard a funny story from a real estate friend today. 

During the last cold snap one of his vacant listings froze up.  Upon inspection he discovered that the water in the toilet had frozen and the bowl was cracked.  Knowing that this would be a real mess if it was allowed to thaw in the house he took the toilet outside and set on the deck.

Repairmen needed to access the house so he hid a key for them, he just lifted the lid and set the key on top of the ice.  That’s the last place a thief might look for a key.  That worked fine when it was 20 below…but this week we had a few days of unusually warm weather.   

Today he got a call from the repairman wondering if there was a new hiding spot for the key.  Then it dawned on him!  The ice thawed this week, and then re- froze last night.  The key was still in the toilet, but now it was at the bottom of the ice. 

At the last report, the repairmen were heating up the frozen toilet on the deck so they could access the house. 

Real Estate just works a little differently in Alaska. 

I should clarify that the key was hidden in the frozen tank rather than in the frozen toilet bowl.  Someone told me that I shouldn’t let the truth get in the way of a good story but I have to tell it straight.

Written by Marty Van Diest 3 Comments »

Neal Fried, on the Mat-Su Economy for 2008 February 18th, 2008

Categories: Market Trends

Neal Fried, an economist with the State of Alaska recently gave a presentation on the Matanuska-Susitna Borough’s economy.  All the slides in this post are from Neal.  They are all thumbnails, just click to expand.

As the chart to the left shows, the economy in the Mat-Su has enjoyed more than a decade of uninterrupted growth. 

The valley’s population grew at a much faster rate than any other part of the state.  Certain portions of the valley have had huge increases in population.  The Knik-Fairview area is not a town or a community, it is just the populated area to the West and South of Wasilla.   As you can see, it grew by 74% in the last 6 years.

Many more people move to the Valley than they do to Anchorage.  The Mat-Su is still dependent on Anchorage since more than 30% of the valley work force commutes to Anchorage for jobs.  The primary reason people live in the valley is because of housing. 

House prices are almost 30% lower in the Mat-Su Valley compared to Anchorage.  In addition, not only do you get more house for your money, you also get a larger lot.  Anchorage has a shortage of land whereas the Mat-Su Valley still has a surplus.  When you buy a house in the Mat-Su, you normally get about one acre, or perhaps 1/2 acre if you purchase in a subdivision with community water.

Things are not all rosy however.  The new construction real estate market has slowed considerably.  As you can see, there was a significant job loss in the construction industry.  We still do have new homes being built and sold, but not nearly as much as in 2004–2005.  For example, out of the 689 homes on the market as of today, 98 of them are new or under construction.  Three years ago, that number would have been closer to 200.

As I keep saying, it all comes back to oil.  Until we figure out some other way to make a living in our great state, oil will call the shots.  And as the chart shows, we better start thinking because production is declining.  Terrence Cole, Alaskan Historian, said, “The balance sheet of Alaskan History is simple: One Prudhoe Bay is worth more in real dollars than everything that has been dug out, cut down, caught or killed in Alaska since the beginning of time.”

Even though production is declining, oil patch employment is up.  That is likely because of the high oil prices.  Companies are exploring and developing more marginal fields.  I hear rumors of completely new oil fields being explored.  But I haven’t heard any rumors of a Prudhoe Bay sized discovery. 

If the oil prices stay high our economy will probably get by in the near future.  We will have to do without as many federal dollars and a weaker construction industry, but we shouldn’t worry too much about a crash caused by Alaskan based calamities.  The global economy is out of out control.

As today’s Monday Market Memo shows…real estate activity is picking up for the spring.  This is the time to get your house on the market.  Give me a call if you would like more information on our consulting model for real estate sales…it can save you thousands.

Written by Marty Van Diest Please leave a comment.

Monday Morning Market Memo 2-18-2008 February 18th, 2008

Categories: Monday Market Memo

The Real Estate Market Statistics for Wasilla, Palmer and the Mat-Su Borough.  This is posted every Monday, so check back to see what is happening in the Real Estate Market.  Or you can click on the Monday Market link to the right to scroll through the historical posts.

It appears after a slow week last week that the market has begun it’s spring revival.  There are more closings and pendings this week and the total inventory actually went down.  We expect a rising inventory in the spring so it’s good to see it decrease once in a while.

The amount of calls in the last week definitely was up.  I believe that we are going in to the busy spring season now.  It will increase in the next month or so, right on through May.

Written by Marty Van Diest 2 Comments »