Monday Morning Market Memo… 5-21-07
Wasilla Real Estate News stats for this past week show a sharp upturn in pending sales for the past week. This gives me some optimism for more closed sales later on. Hopefully those deals hold together. It is interesting that the amount of new listings is exactly the same as in last weeks memo.
The total inventory continues to grow at a pretty rapid pace. I talked to Larry Ficek at RE/MAX this week about the inventory. He had taken a pulse of the market in May of 2006 and notes that inventory this year is up about 25% compared to last May. That is a significant increase, especially when you realize that new construction is a much smaller part of the pie than it was in years past.
I took a look at some higher price homes to get a feel for that market. There are currently 85 homes for sale in the core area between $350,000–$500,000. There have been 13 sales in the last two months which shows about a 12 month inventory which really isn’t too bad. If you have a home built after 2000 in that price range, the market seems to be pretty good.
Here is a scarier number though. Of those 13 sales, only two were of houses built before 2000 and one of those was built in 1999. There are 28 homes on the market built before 2000…how much inventory is that?? You tell me!