Late October 2007 Update - not quite as scary as Halloween!

Our market has changed and some newer agents are having a tough time adjusting. Less than two years ago, we were all scratching for listings and now it seems they are coming in faster than we can build ads and web pages. The number of buyer calls has decreased dramatically over the last few months. All the bad press hasn't helped!

My personal opinion is that things aren't as bad as the media would lead us all to believe. After all, good news doesn't sell newspapers. Juneau is healthy. There's a very low unemployment rate and salaries are likely to increase as businesses scramble to retain good employees. The mines are employing lots of new professionals that relocate to Juneau and we seem to be starting to move in the right direction for them to be fully operational. There are several large chains that have moved into Juneau- Home Depot and Wall-mart already opened. Office Depot recently got planning commission approval and several more stores are on their way. (Schucks Auto Supply, West Marine, PetCo). The fact is these mega-corporations spend millions of dollars studying a market before they move in. They've done their research and they are actively looking for commercial land/buildings.

The "mortgage implode" everyone is talking about needed to happen. For too long the only requirement to get a mortgage was a pulse. It was just getting too crazy, all these zero-down, interest only, 40-year subprime loans. Each of the loan products has a purpose and they've been around for a long time but were never intended to be used in conjunction with each other. More than half the loans out there are 3-5 years old as well and since 90% of foreclosures happen in the first five years, it's no wonder and should be no surprise that we have seen an increase.

Be that as it may, we are still sitting on record inventory in Juneau. There are 114 single-family homes on the MLS and 18 single-family with apartments. There are also many listed with discount brokers that are not on the MLS. Curb appeal and first impressions are more important than ever. Competition is fierce and buyers are somewhat scarce. It takes more effort and money to market a home than it has in years. In order to be successful in a home sale everything must be done just right.

Having the right real estate professional in your corner is more important than ever. Pricing your home to the current market is critical. Offering fair compensation to a buyer's agent is crucial. Allowing your real estate professional an acceptable margin to market your property is a must. According to NAR, homes sold through a REALTOR sell for considerably more than the difference of commission. It costs money to market real estate. It costs money and time to get a website to the top of the search engines. This isn't a time to cut corners!