Monday Market Memo, June 8-15, 2009

Palmer and Wasilla real estate statistics for June 8-15, 2009

These statistics are for single family residential homes in the entire Mat-Su Borough. This includes all the towns from Talkeetna and Trapper Creek to Sutton and Chickaloon.

We went over 900 listings by a good amount this week. With 63 new listings and only 14 closings it was bound to happen. There were 35 pendings this week, so that bodes good for the future. The interesing thing about the pending sales is that 25 of them are new construction.

 

Average PriceMedian PriceDOM
New63$273,167$234,900.
Total Active916$290,315$239,900133
Pending27$227,133$215,00069
Closed14$217,986$222,50083

The fact that new construction can continue to compete well against existing home sales shows that housing prices have not dropped significantly. It is also a warning to home sellers that you have to price your home well below the new construction prices. Buyers will opt for new construction every time unless there is a large price difference.

New houses generally are built to 5 star plus standards so they not only qualify for the $7,500 energy rebate, they also have lower utility bills and maintanence costs. First time home buyers also get the $8,000 tax rebate and often combine it with the energy rebate on new homes.

I met with Nick Fonov of Pacific North Contruction today with a couple that was represented by Trevor Olson of IEC Realty. These people are first time home buyers, so they qualify for the $8,000 tax rebate and they will also get the $7,500 energy rebate. For less than $220,000 Pacific North can build them an 1850 square foot 4 bedroom, two and a half bath home with a two car garage on one acre. That is pretty tough competition for existing home sellers.

I am working with several home sellers that recognise that their house not only needs to be in top shape, it needs to be priced well to compete in this market. Here is a prime example.

Based on information from AK MLS, Inc. for the period but not compiled or published by AK MLS, Inc. Data maintained by AK MLS, Inc. may not reflect all real estate activity in the market.