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“RESIDENTIAL MARKET UPDATE FROM DAVE AND TRAVIS”
It is harder and harder to understand what is occurring in the real estate market in South Central Alaska and throughout much of the United States. I was talking with with a gentleman this week who thought that people were losing their jobs, leaving Alaska in droves and that the prices were going down! Nothing could be farther from the truth and I don’t see the current trend of very low supply and high demand changing any time soon. Resale homes are selling for over asking price with multiple offers and great terms in a just days, sometimes hours. Getting an offer is the easy part most of the time. Getting to the closing table can be a challenge to navigate successfully (Experience Matters).
And believe it or not it is a good time to buy a home especially if you either want or need a change. Interest rates remain low and there are some really cool properties showing up on the market. We are wanting to make a move and in fact made an offer on a home in Big Lake this week. We weren’t successful..so far but it forced me to get pre-qualified and my wife & I agreed on a home!
I took a look at 6 areas in our market in South Central Alaska and ran the numbers. Also we have made a chart comparing Active (Supply) and Pending (Demand) that really illustrates the upside down nature of our real estate market. Feedback Appreciated!
ANCHORAGE SINGLE FAMILY RESIDENTIAL
For the next few months I’ll be comparing more to 2019 than 2020 due to the dumpster fire March-July was in 2020. The Anchorage residential market shows an increase in sales prices of almost $30,000! Note the ratio between active (supply) and pending sales (demand) of over 215%!
MAT-SU “CORE AREA” SINGLE FAMILY RESIDENTIAL
Here is “core area” (Palmer to Big Lake/Houston) and the ratio of 265% is insane! Also note the price increase of over $40,000 since 2019! Multiple offers and over asking price is the “new normal” and when will that start to change???? There were about 90 Existing homes for sale with about 77 new construction homes!!
Anchorage condo sales are brisk as well but definitely more to choose from with a ratio of 113%. Average sales price is up about $15,000!
EAGLE RIVER-CHUGIAK SINGLE FAMILY RESIDENTIAL
Eagle River/Chugiak is a crazy market with a ratio of 294%!! Not much supply and and good chunk of that is new construction! Sales prices haven’t come up that much at least for now which is interesting.
MAT-SU MULTI-FAMILY RESIDENTIAL
Multi-family properties are getting snapped up with supply just 1/3 of last years! And check out the almost 10% increase in sales prices! Great time to sell your investment property for top dollar! And a good time to invest in an income producing property (a safe haven!).
ANCHORAGE MULTI-FAMILY RESIDENTIAL
Anchorage multi-family is an outlier for sure with pretty good supply and a ratio of just 81.5%. Not much in the way of price increases either. That means to me there are opportunities in this area to make good investments. Occupancy rates are still pretty low!