New Construction Still A Large Part Of The Mat-Su Market
In Wasilla and Palmer, new construction homes still have a large share of the real estate market. I have been noticing quite a few new houses in the closed sales list every week so decided to take a look at the numbers…here they are.
First lets look at the whole Palmer Wasilla real estate market.
In 2007 for the first 3 1/2 months of the year there were 336 homes sold compared to 245 homes sold in the same period this year. That is a significant reduction in volume. Obviously, there are fewer buyers this year. These fewer buyers have a greater selection.
In addition, the median price of the sold homes dropped from $213,260 down to $204,675 for this same time period. The median price is different than the average price and is not skewed by a few very high end sales.
Now lets look at the new construction market.
In 2007 there were 124 new homes sold in the first 3 1/2 months of the year. This was almost 37% of the market at the time. This year 78 new homes were sold to equal about 32% of this years market.
It is interesting to note that the median price of new construction stayed essentially equal. In 2007 it was $231,100 compared to $231,300 this year. Building costs have increased in the last year, but builders have cut some of their profit, and buyers have moderated their expectations so that prices remained the same.
Serious sellers are still selling their homes. Pretty much the only people who are selling right now are the ones who really need to sell. A lot of people are holding on to their homes in anticipation of a future price increase if gas line talks result in real progress.
I update a list every week or so that I call my motivated sellers list. I cannot post this on the web because of MLS rules, but I can email it to you. If you would like to receive this just send me an email asking for the motivated sellers list by clicking on my contact link above right.
The data above was taken from the Alaska MLS system. Please see their disclaimer below.
AlaskaMLS disclaimer…“This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market. “