Eric Bushnell

Mid Summer Market update for Eagle River Alaska

I know that a lot of pople are out and about enjoying the summer. So far this year the weather has been decent, not great but at least everyday has not been cold and rainy. so I know that everyone is enjoying themselves. Dip net fishing on the Kenai River has been awesome, the Eagle River Bear Paw was great and this week I know my wife is hiking the Crow Pass trail from Girdwood to Eagle River. so there is plenty to do out there.

So with all this going on; what's the real estate market doing. I've seen recent reports about consumer confidence being down, but that does not appear to be the case here in Eagle River Alaska. The Mat-Su valley(Palmer/Wasilla) is holding its own compared to last year, and Anchorage is down about 9.5% in the number of homes sold. Eagle River and Chugiak are up 16.1% so far this year.

One difference this year is that we are selling more land for new home construction, and as a result of this new home sales are up. This is much different then what we are seeing in the markets in the lower 48. It should be noted that many towns in the lower 48 are doing just fine. Middle America is surviving, even though the talking heads and Wall Street don't give us much credit.

There are tough sales out there, and there is more homes available this year than last. the selection is good, and some homes are just over priced for their condition or location. Remember the #1 rule in real estate is location, #2 is condition, and #3 is Price. You can't change #1, but you can change #2 & #3.

For more detailed information feel free to call me anytime.

Remember to rinse your fish before you put them in the smoker, they turn out too salty otherwise, but most importantly...

Enjoy the summer!

Over the years that I've watched different markets I have seen many ups and downs, sometimes the swings are due to the economy, sometimes due to the weather. The last week has introduced days of beautiful weather here in South Central Alaska, and buyers are looking for something to do besides looking at homes.

Can you blame them?

This is normal and we will see them back in the homes shortly. The market has been good here in Eagle River. I've been asked several times in recent weeks what is the market doing, and as usual I am happy to say that locally, it is pretty steady. According to the local MLS there were 20 transactions pend last week here in Eagle River. That's pretty good, and market supply is holding about 10% higher than last year but is not rising higher like it sometimes does as we approach the summer months.

I've compared the Anchorage, Mat-Su valley, Eagle River markets to see whats what. How are we doing compared to last year? Remember last year there was a First Time Home Buyers credit available that fueled many sales. In comparing the first 5 months of last year to the first 5 months of this year, the Eagle River market has fared better than the other 2. Our sales volume is up, while their down. Eagle River is a smaller market and the property prices are above many First Time Home Buyers. We are more consistent, which leads to stability.

We like Stability!

Now we hope for a warm summer and lots of sunshine. Interest rates remain low, new construction is picking up; the Eagle River economy is very vibrant!

April is almost gone and May begins next week. Wow, were does the time go. The last day of school is just 4 weeks away and many families will be ready to move. This is the time of year that families like to move. So what is happening in the market?

It appears that there are shoppers out there, about 3 shoppers for every buyer. Lots of people wanting to buy a home but their afraid to won one. The buyers are active and we have seen many offers accepted here in Chugiak and Eagle River. In looking at the total market numbers compared to last year there was 4.5% less home sales in the first three months of 2011. That seems to be pretty good since last year we had the first time home buyers credit available. When we get to the end of June we will see what the true market numbers are.

Right now it apears that we are in a slower, but back to normal housing market. The economy as a whole appears to be doing ok. New businesses are opening and there is some new construction underway, housing and commercial. These are good signs for what is to come. The only discouraging sign is that many home owners are not selling. This may be either because they cannot because of what they owe, or they would have to spend too much to move up.

This has increased the number of new homes being built this year in Eagle River. Builders are optimistic about the housing market and are starting new homes. The construction lenders are still tight with the lending, so not all builders can move forward but many are. This is good for our community, which according to the latest census numbers is now 34,982 people strong. This number is about the same as the estimate from 2005, but very little building has happened in the last 6 years (I think the estimate was too high).

Now is a great time to sell if you can, and there are some great deals out there for buyers. Interest rates are low although lending conditions are tight.