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Letter From the Heart – January 2009

November 30, 2010

I hope this letter finds all of you recovered or re-charged or both after the Holidays. For us it’s a mixture of both around the house. Order has been restored, children adored and no one was bored. So overall it went off alright for another year. Dave always says his favorite day is Boxing Day which is observed in England as the day AFTER Christmas, but he’s just a Scrooge.

I thought you might want to talk a bit about the “State of the Market” here in Anchorage as things have been a bit uncertain down in the lower 48 lately.

First of all the average residential sales price has remained relatively stable from December 31st of  2007. That average price being $327,085 in 2007 to $326,625 in 2008. While the original list price in 2008 is $340,529. This represents  action by sellers to lower their original list price over the past year to price the house in a range  that “sells”. As of December 22, 2008 there are 835 active houses on the market with 239 pending closing. What this says to me is that 28.6% of the inventory is selling with an average market time of 65 days.

As many of you may know, interest rates have recently dropped. As of the 22nd of December Lisa Guillory of Advantage Mortgage (257-0145) reported rates were at 5%. If your present rate is 1-1.5 % higher than the present rate being offered, or if you have an adjustable rate mortgage, you may want to consider contacting your lender about re-financing your loan.

So while lower interest rates are being offered to generate some activity, which I believe it will, sellers still must continue to maintain their properties in good condition including updating where necessary. Appearance  will always remain one of the key elements to any sale no matter the market conditions, but even more so when the market is neutral as it is now.

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