Ken, How’s the Market? Seasonal Inventory dropped – remains cyclical. Current Inventory as of: Friday, January 20, 2017, Inauguration Day:
…524 (was 803) Active units, Selling 247/month = 2.1 (was 3.3) months inventory of Single Family Homes
…293 (was 384) Active units, Selling 88/month = 3.3 (was 4.52) months inventory of Condos – all types
…125 (was 141) Active units, Selling 28/month = 4.4 (was 5.04) months inventory of Income Properties
…268 (was 357) Active units, Selling 9.50/month = 28 (was 37) months inventory of Vacant Residential Land
…203 (was 277) Active units, Selling 54/month = 3.8 (was 5.2) months inventory of Homes over $450,000
…98 (was 119) Active units, Selling 16.6/mo = 5.9 (was 7.2) months inventory of 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!
* HOUSING ALERT: Single Family Homes under $450,000 are VERY STRONG in favor of sellers with a low 1.7 months inventory. Single Family Homes over $600,000 is balanced market with 5.9 months inventory.
* This information alone affects everything from pricing strategy, to the days on market, to the concessions and/or repairs sellers may have to address. Many in real estate believe that the downward market forces (jobs, population, military, oil prices, politics) has continued to swing the market slower and down. However, this inventory does not prove that to be true. But even with the lower very tight 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:
* Now that we have this president and his agenda, I believe and predict that Sustained Energy Independence, Beefed up Military, Improved Infrastructure, Support of Police, Replacement of Nationalized Healthcare, Lower Income and Business Tax Rates, Re-Repatriating Corporate Profits Held Overseas, and Adjusting the Balance of International Trade Deals will all add millions of people with new jobs across the country to pay taxes and pursue their own definitions of happiness. I also believe that these improvements will affect positively and quickly, all of Alaska as well as Anchorage specifically.
* Additionally, I predict that the “perception” of a better economy, political atmosphere, and preserved national sovereignty will improve our nation’s morale and have a very positive and powerful effect on our nation’s health! But whatever the market we find ourselves in, it is important to remember that the real estate market is always both a Beauty Contest (curb appeal) and a Talent Show (quality and function). 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, and above all else, you always must be priced right!
Call, text or email me – let’s get you ready to sell or ready to buy!