Did you know: the 30 year FHA/VA mortgage interest rate was 5.5% on 2/1/2023, available homes for sale remains at record low’s and that prices aren’t falling??
First Listing Sold in 2023!
Kudos to my sellers for the sale of their Palmer home. We started talking last summer, had exterior pictures done in September and they did a great job of preparing the home. We listed in January, 2 days on the market with 4 offers. Accepted a Cash offer and closed in 14 days! We are super happy for Rob and Jennifer and they get to stay here for a month rent-free as they prepare to get moved back to Illinois. Everything went very smoothly and what a pleasure to help these folks. A good agent on the other side too which is nice!
Let’s start with a peek behind the curtain of our business in 2022. We had the pleasure of helping 19 sellers (5 land sales) and 15 buyers (3 land sales) for about $8,500,000 in total sales. We are humbled and grateful that 23 of these transactions were from our past clients or referrals – such an amazing number, almost 70% of our business! Although a tough part of the year was when some of our deals didn’t make it to the finish line, which equaled around $2,000,000 in lost sales. I’ve been around this business for 20 years, and I’ve never had 6 terminations in this close together! Moving on to 2023, our GOAL is set at $12,500,000 in sales and our focus remains on providing top-notch service, reliable-timely communication & being kind to all our clients and co-workers.
Dave’s Alaska Homes Market Update
Here is a quote that I thought applied to what we see happening in the real estate world.
“I think that housing is a passionate human need. And that’s why I just feel like, if you can get an opportunity, and you’re a buyer, and you’re in a market where you can get a good price, you’re never going to time the market, right?” he said. “Get in there. If it makes sense for your life, do it.”
Things have sure changed in the “core area” of the Mat-Su Valley over the last 13 years of single-family home sales! Average sale prices have skyrocketed, with roughly a 40% increase between 2020 and 2022. Most of the 10% increase in 2022 happened in the first 6 months and held steady through the end of the year. The highest we’ve seen was a whopping $402,000 and by year’s end, prices had leveled off at $396,000. With the continued severe lack of inventory and steady demand, I don’t see prices (or values) dropping this year and really wouldn’t be surprised with a 3-5% increase in 2023! Crazy!
Looking at the number of sales, we dropped about 11.5% from the 2021 record-breaking number of sales, more in line with 2019, with 1914 total sales. I think we will see about 1700 sales in 2023 more like 2018. Stay tuned for my next email showing where we are now.
I took a look at what has happened for the second half of the last 5 years and a glimpse of the nationwide numbers as well. Regarding the number of sales we were down about 12% for 2022 but down almost 27% for the second half of the year. Nationwide sales were down about 15% compared to 2021.
Looking at average sales prices notice there was no change in the second half of 2022 even with a significant drop in the number of sales! Nationwide we have see a similar big jump in prices over the last few years and again, I don’t think prices will drop much in 2023. I have even seen projections of a 3-5% increase in 2023!
The only thing that can change these trends would be a large increase in homes for sale. Sure that is happening in some of the markets that went up too much like Seattle, Phoenix, Las Vegas etc. Feedback appreciated!
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