Fairbanks Ak Real Estate November 2008 Market Review

There's been a lot of talk about the falling oil prices (which is a topic for another post) but many I'm talking to are concerned about the overall effect on our local economy. We are arguably an energy based economy, which means as the price of crude slides, so goes the funds into the state coffers. It's a double edged sword. No one likes paying $6 a gallon for diesel, but it does provide money for infrastructure. Oil at $150/barrel isn't good, but neither is $25/barrel oil. A happy medium would be nice, no?

Alright, onto the numbers...

Average Sales Price

Homes Sold

Days on Market

Discount from List Price

I think the numbers pretty much speak for themselves. What jumps out at me this month is the sharp decline in the average sales price and number of homes sold, not to mention the very dramatic jump in the discount from list price. The number of homes sold this month represent the slowest November since I began keeping records almost a decade ago. We have to look back to January '06 to find a month with fewer sales (40). The cause? Fear.

A good number of my colleagues are telling me they have buyers that are just afraid to jump into the market for fear of buying a depreciating asset. I won't start the 'Rah-Rah-Rah It's a great time to buy chant' because I think I left my pom-pom's under the bleachers... the truth is for some it's not a good time and yet for others there could be no better time to act. Not sure which camp you fall into? Try this simple formula. Do you have a steady job, good credit, funds for a down-payment and closing costs and plan to stay put for a few years before moving? If you answered yes, then call us, because this is THE buyers market of buyers markets.