State of the Wasilla, Alaska Real Estate Market

Wasilla Real Estate Comparison 2007 to 2008

Most sellers think they will get more money for their house if they wait and sell in the summer months when the flowers are out and their home looks its best.  Not true!  During late winter and early spring the housing inventory is typically lower.  When inventory is lower, sellers have the best chance at getting a higher price and waiting until summer usually costs sellers money and time.  In this uncertain market where home values in most price ranges have declined since 2006, this is even truer.  The longer a seller waits, the lower the sales price.

In early summer months (May & June) our existing inventory typically doubles and new construction begins which adds to the already large pool of housing inventory.  So if you need to sell this year and want to get the most money for your home, don’t wait until summer, start early in February. Sellers consistently get more money for their homes when they sell in during the months of February, March, and April. After 25 years in the real estate field and selling over 2000 homes here in the Wasilla-Palmer area I have found this trend to be consistent year after year.

So what really happened in the residential real estate market during 2008? Fortunately, the real estate market here in Alaska did not suffer as much as the lower 48 did.  According to the Alaska Multiple Listing Service, 1131 homes sold in the Palmer Wasilla area in 2008; 19% fewer homes than 2007 (see the inserted graph for additional 2008 statistics). The average sales price was $227,191 and number of days on the market was 84.  As of January 5, 2008 there were 554 homes on the market for sale which is almost identical to the number on the market last January. Based on the sales in 2008 and a current inventory of 561 homes, we have a 6 month supply of homes for sale. According to the National Association of Realtors, when the number of months of supply is less than 6, the market is stable; a “normal market”. However, if you look in price ranges over $250,000, you will find there is 9-18 months of supply. This means we have sub-markets that are not doing as well as the over-all market. I have posted a complete absorption report in a post on December 26.  That report shows the inventory and number of months of supply in price range increments of $10,000.

Many of us remember the real estate market during the late 1980’s.  It was brutal, but we survived.  The issues that caused the real estate crisis in 1987 are different than those affecting the market today, but the affects are the same.  Fewer homes are selling and they are taking more time to sell.  The question is whether the national economic stimulus plan coupled with lower interest rates can pull us out of this crisis in 2009?  Even if that happens nationally, what will happen here where oil prices are 75% less than they were this past summer?

Here is my advice: 1. if you don’t have to sell, don’t put your house on the market and make it more difficult for yourself or for those who do need to sell.  2.  if you do need to sell, price your home ahead of the market.  Just like when the market was on its way up and homes were priced ahead of the last sale, the same principle applies here only in the opposite direction.  3.  Make sure your home is in great condition—remember what you liked when you were a buyer?  4.  Make sure you have an experienced real estate agent who has a great marketing plan and is an expert negotiator.  This is no time to take chances.  5.  Consider the first offer seriously as the first offer is usually the best offer. 

My team and I sold 181 properties in 2008.  Many of our sellers had tried to sell their homes before, but had been unsuccessful.  If you have questions about how to be a successful seller in this environment, call me.  It would be my pleasure to help you.  Call me at 907-373-3575, or email me.  For up to date market information year around contact me for a full report.