Wasilla Real Estate News, Valley Market Real Estate

Wasilla Real Estate Statistics. May 5, 2008 May 5th, 2008

Categories: Monday Market Memo

Monday Market Memo for the week ending May 5, 2008.  These are the statistics for the Mat-Su MLS for this week.

Well we went over 800 for our total inventory for the first time since last summer.  That was to be expected.  I think we will stay above this number for the rest of the summer.

		Average Price	DOM
New	52	$260,989	.
Total Active	801	281,666	133
Pending	24	$272,549	70
Closed	34	$228,544	76

There were only 24 pendings this week which is less than I expected.  This weekend has been very busy with a lot of showings.  I expect this activity to turn into pendings this week.  I was surprised at how many high end houses were shown over the weekend.  People were writing offers on these $400K+  houses as well. 

The sun is out, the real estate market is warming up.

Written by Marty Van Diest Please leave a comment.

Wasilla and Palmer Land Sales Statistics May 2nd, 2008

Categories: Market Trends

Building lot sales are an indication of the amount of future growth in an area.  If you are going to build a new construction home, you will need to have a lot.

While new construction is a significant portion of the total market, land sales have dropped off faster than has new home building.

Here are the numbers for lot sales for the first 4 months of 2006–2008.  These statistics are for the Palmer-Wasilla Core area.

All Land Sales

Year	Volume	Median Price
2008	47	$37,750
2007	89	$38,500
2006	148	$46,000

 
 
Mat-Valley Acre
Lots from 40,000–50,000 square feet 

Year	Volume	Median Price
2008	21	$31,500
2007	34	$30,000
2006	50	$32,250

 
 
Half-acre development lots
Usually with community water

Year	Volume	Median Price
2008	9	$26,000
2007	15	$46,500
2006	33	$48,500

 

Here is what I think is going on.  You will notice that while the smaller lot median prices have dropped by almost 50%, the larger acre sized building lots have not seen a significant median price drop.  

The speculative building boom has stopped.  Most of the speculative building was happening on the smaller lots.  There still are bunches of these lots out there waiting for the next boom.  Bankers are not loaning on specs.  They want the builder to have a buyer lined up.  Even then, they generally want the builder to front a larger part of the project. 

When a buyer is in the picture ahead of time, they are opting for the larger lots.  They are turning to the acre plus sized lots for their new home.  They know they are paying a little more for the total package but the difference is not much in comparison to the total cost of the project.

The two largest builders are doing most of their work on their own lots.  Since they already own the lots, they don’t show up in the lot statistics even though a new house sale does hit the books.  These two builders are Hall Quality Homes and Spinell Homes.  

So the development boom in the Mat-Su valley is at a pause.  Growth is not over because the Mat-Su is the place to go in Alaska.  But we have enough empty lots for awhile and we need to fill them up with houses before we develop more.  If you are planning to make your killing developing subdivisions, I would wait for a more opportune time.

Written by Marty Van Diest Please leave a comment.

Wasilla New Construction…A Good Buy May 1st, 2008

Categories: For Buyers

Jay and I have been showing a lot of homes in the $175,000–$200,000 price range in Wasilla and Palmer over the past few weeks.

It has become obvious that new construction is a pretty good buy in that price bracket.  We have sold several new homes in the $175,000–$200,000 this year that are really great buys.  The new owners end up with a home with all new appliances, a new roof, new paint…everything new.  And they they paid less than the asking price on many of the 20–30 year old homes on the market.

The downside is that they generally have to wait a little longer to close, usually 4–5 months instead of one or two.  They also have to plant grass for a yard in the summer. But that is a great trade-off for a brand new home that comes with a warranty. 

For example, we are working with a builder that is ready to build a nice ranch style home, just under 1,300 square feet real close to Colony High School.  This house has a two car garage, a split floor plan, (master on opposite side from other two bedrooms), two baths and a two car garage.  Price…..$195,000. 

The house in the above photo is listed with Saundra Hutchins of RE/MAX of Wasilla.  It is 1,384 square feet on a lot off of Spruce near Lucille in Wasilla.  This house is to be built by Goy Construction.  It is a great house for the money…only $188,000.

Than there is Steve Orr Construction.  We have sold lots of his homes over the years.  He specializes in homes that are finished on one floor and unfinished on the other.  A great example is his Maple model.  It’s 2,240 square feet for $177,600.  This is brand new, with a lot, well and septic included.  You can pick your own lot and he will buy it as part of the deal.  There is a $35,000 lot allowance included in the price.  He is represented by Joe Cassidy at RE/MAX of Wasilla.

No matter who the builder is, we represent you…the buyer… in getting your house built to meet your needs.  Just give a call at 907–232–7900 to talk about new construction.

Right now in this price range, new construction is more than 25% of the whole market.  You can see why, many of the smaller builders are putting out a great product for the money. 

If you would like a list of new construction houses that are currently on the market just drop me an email telling me the price range you would like to view and I will send it on to you.

Click on the contact link in the right column to send the note.

Written by Marty Van Diest 1 Comment »