October Real Estate Market Update with Dave and Travis
First off, I just want to take a moment to thank our clients at 231 Herning for the kind words and the positive review for us on Google. It truly means a lot to us to have your trust and support! I’m thrilled to finally be pulling the lockbox on my commercial sale at the Art Music and Dance Center on Herning! This one took some serious back and forth, but hey, that's just how commercial real estate goes sometimes. At the end of the day, it’s all about making sure the deal works for everyone involved. The buyer is a dentist opening a new practice on the site. I couldn’t be happier for my sellers—they’ve become great friends through the process. Now, they can shift their focus fully to their business in Anchorage and have more flexibilty in life! "October Real Estate Market Update from Dave & Travis! " As we near the end of 2024, I wanted to give you a quick update on what’s happening in the Mat-su Valley “Core” real estate market. Whether you’re buying or selling, having a pulse on the latest market trends can help you make better decisions. Active listings have grown from 206 in January to 414 in October, giving buyers more choices. Pending sales are cooling with 267 homes pending, and the average sales price has risen from $371,000 to $427,000 or up about 5% from December 2023. The number of sales is low at 1129 closed year to date. This is a nationwide trend. Here's a quick update on the Matsu Valley “Core” real estate market by Price Range. Homes priced between $300K-$400K are particularly active, with 70 listings, 87 pending sales, and making up 35% of the total closed sales. This makes it a prime range for those looking to sell quickly. Similarly, homes in the $400K-$500K range are performing well, with 117 active listings and 300 closed sales, indicating decent demand in this category. Higher-priced homes in the $750K-$1M+ range are seeing slower movement, with an average of 42 days on the market, but still hold potential for sellers, especially with 37 closed sales recorded in this range. Now lets look at the real estate market in Matsu Valley, Anchorage, and Kenai this year and compared to 2019. In Matsu Valley, there are 414 active listings, and while pending sales dipped, prices have risen to $427,000, with homes selling in 37 days. For Anchorage Residential, active listings have increased but still far below 2019 levels, and pending sales are up to 323. Prices continue to rise, now averaging $514,000, and homes are moving in just 23 days. It is interesting that the number of sales is higher than 2019 by a few hundred! Anchorage Condos also saw growth, with 109 active listings and an average sales price now at $277,000. Condos are selling faster than ever, with just 20 days on the market. In Kenai Residential, listings have grown to 361, and prices have climbed to $384,000, with homes selling in an average of 55 days. The ratio between pending sales and active listings is 35% which seems low compared to the rest of the state but appears pretty normal for Kenai. Whether you’re looking to buy or sell, now is a good time to explore your options and start planning for 2025. We are here to help guide you through the process—just reach out! Thank you for trusting us with your real estate journey. Check out our Beautiful Listings at https://davesalaskahomes.com/featured-listingSearch for homes easily at https://davesalaskahomes.com/listingGet your home’s estimated value instantly at https://davesalaskahomes.com/evaluation If you or anyone you know has ANY thoughts of buying or selling real estate, lets connect to talk about the opportunities available in our market and how to reach your goals. LET US BE YOUR TRUSTED GUIDE Call or text Dave now at 907-863-7289Call or text Travis now at 907-575-6779 davesalaskahomes@gmail.com http://www.DavesAlaskaHomes. com
Home Values Rise Even as Median Prices Fall
Home Values Rise Even as Median Prices Fall Recent headlines have been buzzing about the median asking price of homes dropping compared to last year, and that’s sparked plenty of confusion. And as a buyer or seller, it’s easy to assume that means prices are coming down. But here’s the catch: those numbers don’t tell the full story. Nationally, home values are actually rising, even if the median price is down a bit. Let’s break down what’s really happening so you can make sense of the market without getting caught up in the fear the headlines create. Homes on the Market Right Now Are Smaller The biggest reason for the dip in median price is the size of homes being sold. The median price reflects the middle point of all the homes for sale at any given time. And that’ll be affected by the mix of homes on the market. To show you how this works, here’s a simple explanation of a median (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median (the middle one) is 10 cents. If you have two nickels and one dime, the median is now five cents. In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change. The same is true for housing. Right now, there’s a greater number of smaller, less expensive homes on the market, and that’s bringing the overall median price down. But that doesn’t mean home values are declining. As Danielle Hale, Chief Economist at Realtor.com, explains: “The share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further.” And here’s the data to prove it. Price Per Square Foot Is Still Rising One of the best ways to measure home values is by looking at the price per square foot. That’s because it shows how much you're paying for the space inside the home. The median asking price doesn't take into account the size of different homes, so it may not always reflect the true value. And the latest national price per square foot data shows home values are still increasing, even though the median asking price has dropped (see graph below). As Ralph McLaughlin, Senior Economist at Realtor.com, explains: “When a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year.” This means that while smaller homes are affecting the median price, the average home’s value is still rising. According to the Federal Housing Finance Agency (FHFA): “Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.” So, while headlines may make it sound like prices are crashing, you don’t have to worry. With a closer look and more reliable data, you can see that prices are still climbing nationally. But it’s important to remember that home prices can vary by region. While national trends provide a big-picture view, local markets may be experiencing different conditions. A trusted agent is the best resource to explain what’s happening in your area. Bottom Line The decrease in median price is not the same as a decrease in home values. The median asking price is down mostly due to the mix of smaller, less expensive homes on the market. The important thing to focus on is the price per square foot, which is a better indicator of overall market value—and those prices are still going up. If you have questions about what home prices are doing in our area, feel free to reach out. Check out our Beautiful Listings at https://davesalaskahomes.com/featured-listingSearch for homes easily at https://davesalaskahomes.com/listingGet your home’s estimated value instantly at https://davesalaskahomes.com/evaluation If you or anyone you know has ANY thoughts of buying or selling real estate, lets connect to talk about the opportunities available in our market and how to reach your goals. LET US BE YOUR TRUSTED GUIDE Call or text Dave now at 907-863-7289Call or text Travis now at 907-575-6779 davesalaskahomes@gmail.com http://www.DavesAlaskaHomes. com
September 2024 Market Snapshot – the low number of home sales & hurry up to get pictures before snow flies!
Hey, it’s not too late to get stunning exterior pictures of your home—for FREE! With fall just around the corner, now’s the perfect time to capture its beauty before the leaves fall and snow arrives. We’ve been busy lately, taking aerial shots for several homes, and have room for a few more! If you’re thinking of selling before next summer, this is your chance to showcase your property at its finest. Don’t miss out!! "September 2024 Market Snapshot – An Update from Dave & Travis! " Here’s a quick market snapshot as of September 16th. We have 453 active listings in the "core area" of the valley. There are 269 pending sales and 1,023 closed sales so far this year, with an average sales price of about $429,000. We haven’t seen this few pending sales in a long time – even in 2019, there were 100 more pending and 200 more active listings, so while the ratio is similar (59%), the overall activity is down. Existing homes make up 65% of the active listings, 72% of pending sales and 80% of closed sales. Also note the days on market (DOM) for closed sales at 66 days for new homes & 29 days for existing home sales! Now, here’s the deal: the number of sales and pending sales is lower than we’ve seen in years, and it's something everyone in the market, including us, is feeling. Some of our listings just aren’t seeing the action we expected. Interest rates are dropping, and we expect to see more activity soon. The low number of closing is a nationwide trend. I think there is a bunch of "pent up demand" just waiting to jump in the market!? Still, there’s a lot of uncertainty out there that affects confidence and certainly affordability remains a big issue. Across the state, homes are moving with an average of 38 days on the market and an average price of $445,000. In Anchorage, we're seeing residential homes in high demand, with more pending sales than than active listings. Condos are still flying off the market in just 20 days. On the Kenai Peninsula, the ratio between active (supply) & pending sales (demand) seems low and slow at 35%. I need to check with our Soldotna office about what they are seeing. If you’ve been thinking about selling, now's the time to get top dollar, and if you’re buying, it’s a great moment to lock in a home at a lower rate before prices climb even higher. As of 2024, we’ve closed 1,023 sales, with the average sales price at an impressive $429,000. That’s up from last year’s average price of $419,000 across 1,102 sales. Going back a bit further, 2022 and 2021 were standout years with over 1,480 closed sales each, with 2021 being particularly remarkable—the highest number of sales we’ve ever seen. When comparing the current figures to earlier years, I had to go back to 2013 (921 sales) to find fewer sales than 2024 (1023). Incredibly, prices have nearly doubled in the last decade going from $227,000 in 2013 to $429,000 in 2024! Days on market (DOM) have also decreased, with homes in 2024 sitting on the market for an average of just 36 days, compared to 85 days back in 2012. As always any comments, thoughts or questions about the market please just let us know! Travis and I are prepared to support you in understanding the current market and seizing real estate opportunities. Get in touch with us today to explore your possibilities! Thank you for trusting us with your real estate journey. Check out our Beautiful Listings at https://davesalaskahomes.com/featured-listingSearch for homes easily at https://davesalaskahomes.com/listingGet your home’s estimated value instantly at https://davesalaskahomes.com/evaluation If you or anyone you know has ANY thoughts of buying or selling real estate, lets connect to talk about the opportunities available in our market and how to reach your goals. LET US BE YOUR TRUSTED GUIDE Call or text Dave now at 907-863-7289Call or text Travis now at 907-575-6779 davesalaskahomes@gmail.com http://www.DavesAlaskaHomes. com
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