Valley Market Real Estate
People are constantly asking us what are house prices going to do. And we keep looking into our crystal ball. We discussed this a little this morning in our office meeting. Here are the basic facts.
1. Owners have a lot of equity in their homes. This means, if they get into a predicament and can’t make their payments, they can sell. The gap between the amount they owe and the value is too large to necessitate foreclosure. There are only 5 foreclosures for sale currently in the Mat-Su.
2. Owners have very low-interest rates. What this tends to do is anchor owners in their homes. Who wants to get rid of a 2.5% interest rate to buy at 7.5%… No one does.
3. The economy hasn’t crashed. In order for prices to go down people need to start losing their jobs. There are not huge layoffs in our area. As long as people still have jobs there will be a demand for homes.
That said, I took a look at the sales for the last 3 months compared to the sales for the previous 3 months. The average price per square foot for the months of June, July, and August was $235 sq ft. The average for Sept, Oct, and Nov was $230 sq ft. So prices are certainly not skyrocketing either.
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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.
