I can hardly believe we are nearly halfway through the year, and it got me thinking: What is in store for our real estate market in the remaining half of 2016? To be honest, I try not to speculate too much, and unfortunately, I do not have a crystal ball, so your guess has a 50/50 chance of being the same as mine. Yet, I find it hard to ignore all the chatter.
If not a fortune teller, the second best occupation I can think of being is to be a Realtor®. Ok, I may be biased. Joking aside, in addition to negotiation skills, in our bag of tricks is the unglamorous task of research. We research comparable properties, alternative financing options, zoning issues, helicopters, ventless dryers, feral cat rescue — You name it, we’ve probably researched it. But I digress. As a Realtor®, I see market statistics everyday. So, I did some, you guessed it…research. I went back in the archives (opened a binder) and pulled the Total Market Overview, or TMO, report from today of last year, dated June 10, 2015, to compare it to the current TMO dated, June 10, 2016. Here is what I found:
Starting with the Anchorage Single-Family Residence (SFR) statistics, the thing that jumps out at me immediately is the average Days On Market (DOM). In 2015, the average DOM was 53 days; 2016 average DOM is currently 49 days. If you’re like me, you may be surprised to see that the average days on market is now LESS than the previous year. There is more inventory this year than last, a whole two weeks worth, in fact. I am not objective when I state that two weeks of “extra” inventory is not much of a reprieve as we were scratching at the ground for homes to show our Buyer clients. What the data does indicate, is that with shorter Days On Market, and more inventory, it means that the “good” homes are being identified and sold quicker – My hats off to you savvy Sellers and Buyers that have taken advantage of this.
Let’s talk about Condos in Anchorage (includes town houses) for a moment. Condo sales are popular for first time homebuyers, especially when interest rates are as low as they are right now. As I write this, the current FHA rate is 3.25%. The number of condos closed at this point of the year is 453, which is 16 homes less at this time last year (469). This is less than three homes per month difference. In the condo sales world, this is almost insignificant. Basically, condos today are selling at a similar pace as last year. In other words, the need for condos is still high, competitive even. There is about one month’s worth more inventory for condos, and if you’re a seller, the solution for this is simple: Better marketing and pricing it right.
Overall, the Anchorage real estate market is in some ways, stronger than it was at this time in 2015. Shocking, I know. I myself am having to tune out the media and simply look at the hard numbers in front of me. I conclude with a look at one more statistic. After all, I did go through the trouble of all this research.
The average Sales Price in 2015 by this time was $286,633. A year later in 2016, the average Sales Price currently sits at $287,681. Yes, the average sales price throughout Anchorage for all home sales (SFR, condos, new construct, etc.) has gone UP. Take that to the water cooler.
RMG Real Estate Experts
Keller Williams Realty
Article Written June 14, 2016