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Letter From the Heart – Feb 2012

February 10, 2012

I am always thinking about the Real Estate market, but especially this time of year. I say this because this past month, January 2012, I attended the Anchorage Board of Realtors forecast lunch. The purpose of the event was to review 2011 in terms of what took place since 2010 year end, within the Anchorage market, and to perhaps shed some light on the direction it may go in 2012.
Below are some statistics comparing 2010 and 2011.

2010                        2011
*Closed residential transactions                                                               2300                        2348                         +2% change
*Median sales price                                                                                      $295,000             $295,000
*Average days on market                                                                             65 days                   71 days

*Condominiums closed                                                                                 999                            844                            -18% change
*Median sale price (condos)                                                                    $185,000                $188,850
*Average days on market                                                                              90                                90

When I am asked about the market (which is quite often), I reply “which market?” We have two distinct markets in Anchorage. One market has those properties which are priced properly and are in good condition and continue to sell in a normal market time and sometimes with multiple offers. The other market contains properties that are priced out of the marketable range and have not been updated recently, and are therefore not selling.

Regarding the condo market, we have recently seen the “lower end” financing become quite tight. Banks are requiring projects to meet stricter guidelines than in the past. This is due to inadequate reserves, delinquencies, lower owner occupancies and a saturation low down payment loans.

If you would like a complete set of statistics either give me a call or send me an email and we will mail them to you. If you have more specific questions or need advice give me a call. May you have a safe and prosperous new year.

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