It's spring time in south central Alaska and the snow is melting and the pot holes are emerging. Spring brings longer days and the sunshine that we have missed since late September. It also hearkens the beginning of this years construction season.

Now is the time that buyers are beginning to search out where they would like to build that new dream home. Builders are looking for that perfect spot to showcase their wares. Just the week before Easter the Anchorage Home Builders Association, AHBA, hosted the Spring Preview of Homes. Many of this seasons new projects were on display as well as several of very nice and custom (expensive) homes were showcased.

One of the differences this year is that several of these showcased homes were the builders's private residence. Why is this? As the housing market slowed and in some areas the prices adjusted the cost of new construction did not. It has continued to rise, just like those pesky gasoline prices. Local lending institutions have become cautious, I believe overly cautious, not extending loans to builders so that they can build SPEC (speculate) homes.

Now I believe builders are being just has wary, because they see what has happened to other builders in the lower 48 markets. It does no one any good to over extend themselves. Many would think that this change is a bad sign, and just a glimpse of what is to come. I believe it is a healthy adjustment in the new homes market, but it will make building your new home a little more difficult.

Why is this you ask? Well, for one most consumers that purchase a new construction home, do so when the home is 90-95% complete. All cabinets, colors, and flooring has been selected. Many new home owners want the new home, but they want it now, they do not want to wait 5-8 months for it to be built from scratch.

These changes in our market have slowed the growth in new homes. Buyers that desire that brand new home will have to start at the very beginning, lot selection. Wow, that early you think, yes sir. The builders are waiting for the consumers to come to them. Now is the time to build that custom home, you pick the colors and all. One last point I would like to make is that time does move rather quickly and 5-8 months from now your new home will be finished and it will be beautiful, and it will not be as stressful as you think.

That is if you work with someone who knows what their doing. Do your research, pick a good builder and have a good Realtor along for the ride that understands new construction.

While the construction of a new home may take 5-8 months, it is worth it. The old say, "A Man's Home is his Castle" is specially true when it come to a brand new custom home.

The Real Estate market in Eagle River Alaska is very good. Now some will say "How can you say that?" Yes, Homes are on the market much longer then 2-3 years ago, and Yes, in 2007 we did see the average sales price decline by approximately 2.5%. This is just a number, the truth is that homes are being sold and buyers are currently in the market looking to buy.

Many of the buyers are not looking at the more expensive homes, and this is why the average sales price has dropped. We did sell just under 700 homes last year in the Eagle River area. That is the 5th best year ever. We are seeing some effects from the problems being experienced in the lower 48. Buyers are being more cautious. This is a good thing, buyers should be more cautious, they should be fiscally responsible. Buying a home is not like buying a new cellphone, this a purchase that can affect your life. It should be done with care, knowledge and with the assistance of people who know the market and business.

The Real Estate market in Eagle River is cruising along with a slight edge to the buyer. What this means is that for a owner to sell their home they must ensure that all items maintenance items are completed and the home is in good condition. If a home is in excellent condition, in a nice location, then a buyer will pay more for this house, and most buyers would be happy to do this. If a buyer is willing to take on the task of renovation, new carpet, and/or some deferred maintenance, then they will probably be able to get a discount.

Finally, The Real Estate market in Eagle River is good and the community is strong. There is new construction taking place. Commercial construction is also underway as new office buildings are going up and new services are being added to our community. The community is strong and growing. The best part is that growth within our community has been moderate and prices have not been over inflated by investors from other parts of the country. Our Real Estate market is a local market based on the local economy and right now, and for the immediate future is looks good.

Being the sales manager of the Prudential Jack White/Vista Real Estate office in Eagle River Alaska provides me with a very interesting view of the Real Estate market. Many consumers are gravitating to the more experienced Realtors, why is this happening. I believe it is because these successful Realtors operate their real estate practice as a business, not just something to do in their spare time.

Todays consumers know about the mistakes that their peers have made and do not want to be next weeks headlines. A very good Realtor in my office just shared with me the success she had by representing here client professionally. Her new client was the seller three years ago and like the way she represented the buyers. Now three years later their back in Alaska and want her to represent them in buying a home.

This is a great example about doing business right.

Until next time.....