Ken, How’s the Market?
Seasonal Inventory dropped – remains cyclical.
Current Inventory as of: Tuesday, November 8th – Election Day
…803 Actives, Selling 240/mo = 3.3 Single Family Homes
…384 Actives, Selling 85/mo = 4.52 Condos – all types
…141 Actives, Selling 28/mo = 5.04 Income Properties
…357 Actives, Selling 9.58/mo = 37 Vacant Res. Land
…277 Actives Selling 53/mo = 5.2 Homes over $450,000
…119 Actives Selling 16.5/mo = 7.2 Homes over $600,000
The National Association of Realtors says 6 month’s inventory is “Balanced”. Less than 6 months may favor sellers. More than 6 months may favor buyers! I believe “lower inventory” reflects the new “Balanced Market” because the world’s 2008 financial problems kicked all speculation and “let’s see” to the curb and people are STAYING PUT unless they have to move or can’t pass up a great deal!
ALERT: Single Family Homes under $450,000 are holding VERY STRONG with a low 2.7 months inventory. Single Family Homes over $600,000 are more in favor of buyers with 7.2 months inventory but more balanced.
This information alone affects everything from pricing strategy to the days on market to the concessions and/or repairs you may have to address. Many in real estate believe that the downward market forces (jobs, population, military, oil prices, politics) will continue to swing the market slower and down a bit – though it is not in favor of buyers. But even with the lower much tighter inventory under $450K, buyers are either choosing not to purchase or the process has become so strict that they cannot buy. However, I’ll say it here first regarding our national elections: if one particular candidate wins, then I believe Energy Independence, Beefed up Military, Infrastructure, Beefed up Police, Replacement of Nationalized Healthcare, and adjusting the Balance of international Trade Deals will all affect – positively – Alaska and Anchorage. I predict that the “perception” of a better economy and politics and pride will have a very positive and powerful effect on our economy! But it is important to always remember that the real estate market is always both a Beauty Contest and a Talent Show. You must have the “Beauty” to get people to see the inside. And then the house needs the “Talent” of quality to nudge people to want to make an offer, or at least get more serious. More importantly, you must be priced right