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Is The Real Estate Market Really Improving?

There are many indicators that are tell tale signs of whether the market is improving, days on the market, average sales price, sales to list price ratio and housing inventory levels. Housing inventory levels I believe are a key indicator. So how do you know whether the housing inventory is normal in your geographic area? The National Association of Realtors (NAR) indicates that normal inventory levels are 3.6% of the total markets occupied housing units. In the Palmer Wasilla area of Alaska there are 21,015 single family occupied housing units. Using NAR’s indicator of 3.6% a normal inventory level in our area would be 756 homes for sale. As of October 29, 2008 there are 2078 homes on the market for sale. That means we have a ways to go yet before our market is back to normal. But as I have indicated before, there are some price ranges within our market that have normal inventories already. So don’t let the overall number mislead you. If your home is valued at less than $245,000 there is good news. Almost all of the price ranges below $245,000 show a very normal housing market. If you have questions about your home, contact me at Kristan@KristanCole.com

New Tax Credit!

This pportunity for first time home buyers is well explained here. Just click on the title above to learn all about it in an easy format.

Any further questions, please feel free to call Barbara at 800-923-3245.

Lease-To-Own

Lease-to-own is gaining favor once again

Lease-to-own options are becoming popular again after falling out of favor during the last couple of decades when mortgages were easy to get.

The advantage of lease-to-own to a buyer includes a way around poor credit and an opportunity to rebuild credit worthiness and get in a position to obtain a mortgage.

For sellers, it offers cash flow from properties that might otherwise just be sitting there.

In some parts of the country, like Florida, rent-to-own arrangements are fairly commonplace; but in other parts of the country, buyers and sellers are only beginning to experiment with this form of purchase.

For developers it can also be a way to market their idle spec homes and produce cash flow to keep their lenders happy.

If you have any questions re this arrangement, please email me at Barbara@BGaines.com.

June 2008 Summertime In Alaska

Technically it is summer. Summer solstice will be here next week and Father's Day is this weekend. But, did someone forget to turn on the sunshine? After a slow cold spring many of us convinced ourselves that sunshine would be just around the corner.
Maybe the lack of sun is the reason record numbers of buyers have been on our website looking at homes this past week? It's true there have been double the number of unique visitors on our site this week. If they are interested in buying a home in the price range above $275,000 they will find a huge selection. Take a look at the number of homes on in the Palmer Wasilla area that came on the market this week, versus the homes that pended and sold:
Total Actives New Actives this week New Pendings & New Solds this week
710 60 22 20
When there are more homes being listed for sale than are pending and selling, we are gaining inventory. This trend needs to change before we will have equilibrium in the market place across all price ranges. As I have mentioned before the bright spot is under $275,000. This price range continues to be a normal market with 2-3 months of supply. Over $275,000 continues to be a challenging market with more homes for sale than there are buyers. If you have questions about your home, email me at Kristan@KristanCole.com or call 373-3575. Kristan

Cost of Electricity by State

Here is a quick post from Pete Doty, a Highlands Ranch Real Estate agent.
There is a link in the post that compares the cost of electricity by state so you can see what other folks across the country pay. Colorado is ranked #25. What is your stats rank.

Compare Renting to Buying a Home

Click on the above title to compare renting versus buying a home. It takes about a minute but the results are very interesting!!!

Big Bank Owned Bargain Sale in SW Florida

The Ellis Team at RE/MAX Realty Group conducted a big blowout bank owned bargain sale the weekend of March 15. Several homes were sold, however we've listed several more at baragin prices. We've setup a special website just for these bank foreclosures in Fort Myers, Cape Coral, and Lehigh Acres Florida.

We can be reached at 800-860-4042 if you're interested in purchasing bank forclosures in SW Florida at bargain prices.

Having Trouble Making Your Mortgage Payments?

You are not alone if you are struggling right now with your mortgage payments. With home ownership at an all-time high and some questionable lending practices over the recent years, many people now find themselves in a bind keeping up with their bills. No matter what kind of mortgage you have, you need to understand your options and work with your lender and experts to avoid losing your home if at all possible. Following is a brochure put out by NAR (the National Association of Realtors) that may help you. Click here.

State of the Real Estate Market in Alaska

If you are thinking of listing your home in the spring, now is the time to start cleaning up and clearing out the clutter so you’ll be good to go in 2008! I wrote a “State of the Real Estate Market” article for the Frontiersman newspaper that comes out at the end of the month. This is good information for anyone looking to sell in 2008 or anyone just wanting to know the real facts about the residential real estate market.
Attention all seniors graduating from High School in May of 2008. Apply for one of our three scholarships we will be awarding this year. We give away 3 scholarships totaling $3000 each year to graduation seniors.
Attention all renters! This is a great time to buy with low interest rates and several new homes to choose from. Stop throwing away rent and start earning equity.
Red Cross award. The local Red Cross Chapter Thanks the Kristan Cole Team for monetary contributions and whole blood and plasma donations. Also don’t forget about our warm coats—warm hearts coat drive for children. Drop off at our office anytime this month.

BIG ROCK FISHING TOURNAMENT

Below is an exert from the Big Rock Newsletter. The Big Rock Marlin Tournament is held in Morehead City and soon to celebrate its 50th anniversary. The tournament brings in tourists and sports fishermen from all over to Carteret County.

"Big Rock History"

The Big Rock Blue Marlin tournament began in 1957 when a few local businessmen known as the Fabulous Fishermen decided to offer $250 silver dollars to the first fishermen who could catch a blue marlin off the Crystal Coast. On September 14, 1957 Raleigh angler Jimmy Croy fishing aboard the Mary Z with Capt. K.W. “Bill” Olsen, landed a 143 pound blue marlin. A tournament was born. In the early years, the Big Rock could barely be considered a tournament. There were no rules of consequence and only a few boats participated. In 1965, a listing of prizes included one quart of varnish. Wow, has it ever grown from that!Entries in 1970 were 35 and in 1973 Bump Styron, owner of the Morehead City Yacht Basin gave the tournament its current name, Big Rock Blue Marlin Tournament. The tournament entrants topped 111 in 1979 and grew to 177 boats in 1989. The Big Rock currently averages 190 boats and nearly 1500 competitors. The purse has exploded from that first 250 silver dollars into a whopping $1,568,950 in 2007.

Investors prowling around

Over at http://highlands-ranch-real-estate.blogspot.com/2007/09/investors-prowling-around-denver.html I just posted a note about investors.

I would love your comments and what you think of this report and how FSBOs should be prepared for them.

Southeastern Michigan Real Estate

Here in southeastern Michigan, as in many areas across the country, we continue to have a swollen inventory of homes for sale. It started with overbuilding and overly inflated home prices. Eventually the market had to re-adjust, and when it did so, foreclosures added to our already large inventory of homes for sale.

Now with money getting tighter, which means less buying power, there are fewer home sales. Mortgage rates have been increasing. And every time the mortgage rates go up, even a quarter of a percent, a large number of potential buyers are disqualified from the marketplace. Additionally, a number of mortgage companies are going out of business, with American Home Mortgage Company - the tenth largest in the country - as the latest to close their doors. In recent years mortgage companies granted mortgages to just about anyone, including those who couldn’t or wouldn’t prove their income, those with no down payment and even those with very poor credit. But today, with foreclosures climbing steadily, almost all mortgage companies have re-enacted the tight lending restrictions that were common decades ago. The result of all this is that there are fewer buyers now to purchase those homes on the market so the inventory continues to be swollen.

Statistics from First American Real Estate Solution show if one house forecloses in a neighborhood, the average house in that neighborhood loses five percent of its value. If eight percent of the houses in the neighborhood foreclose, the value in that neighborhood goes down twenty percent.

Recently President Bush has been exhorting the lenders to try to help out those who are facing foreclosures. Just what can be done is yet to be seen, but some lenders are more willing than others to try to work with a homeowner who is in financial trouble. If you or a family member are having trouble making your mortgage payments, it is advisable to discuss your situation with your lender now. Or, if you have a very experienced Realtor who has seen good and bad markets over time, you might want to discuss your situation with that person before going to the lender.

Mid Year Real Estate Report Wasilla Alaska

The residential market is down 27% compared to this same time last year. That means that 27% fewer homes are selling as compared to last year at this time AND only 41% of all the homes coming on the market since the beginning of the year have sold. The good news is that we (Kristan Cole Team) are selling more homes this year than we did last year, so at you have the best chance of selling if you are listed with us.

Year to date comparisons from last year same time:
Residential down 27%
Land down 53%
Commercial down 12%
Multi Family down 49%

What percentage of properties that were listed this year has sold?
Residential 41%
Land 20%
Commercial 14%
Multi family 25%

Home many properties are on the market now?
Residential 903 (about 50 more than last month)
Land 922
Multi family 89
Commercial 81

Average number of days on the market for homes that have sold: 95 days

The most important advertising we are involved with is on the internet. We know 78% (National Association of Realtors statistic) of all buyers start their search and ultimately find their home by using the internet. Our web site is attracting great buyers for our homes and our sellers. Here are some statistics about how powerful our web site is. FACT: 60% of all of our buyers that purchased a home in the month of May came to us from the internet.

Kristan Cole Team WEB SITE TRACKING:

KristanCole.com
Average views: per day 1051 and 26, 593 per month

Kristan’s Visual Tours
Average number of times our active tours have been viewed per property 86
Average number of views per week of different properties 338

Kristan’s Realtor.com site
Average views per day 525 and 15,750 per month

Everyone Loves a Sale

Thinking of remodeling or staging your home for selling or furnishing a new home??? "Baby Boomer News" offers some suggestions for saving money on household items by waiting to buy during certain sale times. Here are the typical sale months for bargains on specific merchandise:

January - Linens, fabric, quilts,blankets, small appliances, TVs
February - Bedding, floor coverings, furniture, housewares
March - Washers and dryers, air conditioners, china, glassware
April - Kitchen ranges, wallpaper, paint
May - Radios, TVs, linens
June - Bedding, floor coverings, furniture, storm windows
August - Linens, rugs
September - China, glassware
October - Rugs, fabrics

Ann Arbor Michigan Tops List for Talented Labor

Ann Arbor was ranked first in the country for its knowledgeable workforce according to trade publication Expansion Management's 6th annual Knowledge Worker Quotient. The study ranked 362 metropolitan statistical areas for their ability to provide talented workers and an "innovative environment."

What does this mean? Well, for one thing, Ann Arbor is better positioned than almost any other place in the nation to thrive and prosper in the future. That's good for businesses looking to come into this area. It also means Ann Arbor is a good place to settle and invest in a home. While much of Michigan is struggling with economic issues, the Ann Arbor area is faring much better than the rest of the State.

Fayetteville Arkansas #1 in new "Best Places" study

Our best-kept secret has been announced to the world by Bert Sperling of Sperling’s Best Places fame. Sperling has previously researched and written books about a variety of issues such as the best places to raise a family and cities with the lowest crime rates.

The idea is that although larger cities may be a great place for young graduates to find work and jump start careers, often the high cost of living is prohibitive for young families. This study looked at affordability and job growth, as well as quality of life for the real estate section at MSN. The Fayetteville Metropolitan Statistical Area (MSA) ranked number one in the country, according to Sperling. (Fayetteville MSA includes Fayetteville, Springdale, Rogers, Bentonville and stretches into extreme southwest Missouri.)

The area boasts five-year-job growth of 26.1% and a low unemployment rate of 3.5%. In addition to the headquarters for Wal-Mart, Tyson and J.B. Hunt Trucking, many other Fortune 500 companies have facilities here.

Living costs are low and there are many cultural opportunities: the University of Arkansas-Fayetteville with all their sports and cultural activities, several museums plus a world-class museum scheduled to open in 2009, a large performing arts center, excellent medical facilities, and our own regional airport with non-stop service to Chicago, Houston, Detroit, Minneapolis, Dallas and additional cities.

Add all that to the clean air and natural beauty of the Ozarks, many lakes including Beaver Lake with its 449 miles of shoreline, and a very livable four-season climate and you can easily understand why Sperling found this area so attractive.

Other cities featured in the study are also smaller cities with vibrant economies and usually universities: Idaho Falls, ID; Logan, UT; Auburn and Huntsville, AL; Iowa City and Dubuque, IA; Pensacola, FL; Blacksburg, VA; and Fargo, ND.

To find real estate information for Fayetteville:

Fayetteville and NW Arkansas Real Estate

To search for homes in NW Arkansas:

http://www.NWArkansasHomeSearch.com

For more information about the study:

http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=3863709
http://www.nwanews.com/nwat/news/51179

Short Sales

For those of you who follow the news of southeastern Michigan and the auto industry, you know just how much our real estate market has declined. Today Michigan is 5th in the country with foreclosures. Detroit is #1 of all cities in the country, with 1 out of 21 homes in foreclosure. There is more reason for this than just the auto industry, such as mortgage practices that put many homeowners in an "upside-down" position.

With this situation if an owner has to move, and does not have cash to take to closing, as Realtors we are suggesting to the owner to try to work a deal with the lender to take less than is owed on the mortgage. This is called a "short sale."

You might question why a lender would do that, but often they are better off taking a little less now than spending over a year going through the foreclosure process with mounting legal fees, taxes, and utility bills to pay. Plus there's the concern the lender should have of sitting with a vacant house that could be vandalized or have frozen pipes in the winter or whatever.

From the owner's point of view, they end up with a rather mild "blip" on their credit record as compared to going into foreclosure which stays on their credit record for TWELVE years and makes it difficult to get another mortgage at a reasonable interest rate during those years.

Difficult as it is to lose a home, we encourage owners to face the issues early on while there is time to possibly work a deal with their lender. As Realtors many of us are able to provide asistance with the process.

Wasilla, Alaska First Quarter Marketing Statistics for 2007

Our market here in Alaska started changing last fall. We have transitioned from a seller's market to a normal market. This change of pace has caught a lot of folks and a lot of real estate agents off guard. Currently our residential market is off 5% as compared to the first quarter of 2006. To see my full first quarter report click here

Real Estate Myths Debunked

Real Estate Myths Debunked

After almost 23 years in the real estate business I have found there are still lots of misconceptions surrounding real estate. Here are my top 6 real estate myths:

1. If the house has been on the market for a while, the seller will negotiate price. There are many reasons a house may have been on the market for awhile. Maybe they had an offer that fell through because the buyer couldn’t qualify, possibly the house was listed at a higher price initially and after several days on the market the sellers reduced their price, or maybe the seller had an emergency and the house couldn’t be shown for several days. Just because a home has been on the market for more than the average number of days, does not mean the seller will negotiate their listed price.

2. If I make an offer, the seller can’t sell to anyone else while I am negotiating with him and/or the seller must address my offer first if I was the first one to submit an offer. Neither of these is true. Up until the buyer and the seller have come to an agreement (fully accepted offer), the seller can choose to accept a different offer and stop negotiating with you. Additionally, if more than one offer is presented to the seller, the seller can choose to accept either offer without notifying both buyers that more than one offer was received. The thing to remember is that all offers must be presented to the seller regardless of whether the seller is currently negotiating an offer or not. Then it’s the seller’s decision as to how he would like to proceed and negotiate with the buyers.

3. A full price offer can’t be rejected by the seller. Yes, a seller can reject a full price offer. There are several other terms to an offer other than just price. The seller does not have to accept any offer, even full price offers.

4. Discount Brokers or FSBO save sellers money. Not true according to The National Association of Realtor Statistics (NAR). NAR indicates that sellers end up with a much higher sales price when using a full service Realtor, up to 10% more on average.

5. I'll save money if I don't use a Buyer Representative (sometimes called a buyer specialist).
In my opinion you will save money and lots of heartache if you use a Realtor to represent you. I have seen some real horror stories where buyers purchased a home without representation and ended up with problems (encroachments, set back violations, inspections that were never completed, lack of sex offender notice, etc.) that could have been resolved prior to the purchase if a professional had been helping them from the beginning. My husband and I bought a condo in Girdwood about 7 years ago and we hired a Realtor to represent us instead of trying to represent ourselves in a market where we were not familiar. A buyer’s representative can show you ANY home regardless of who has it listed.

6. Assessed Value is Market Value. Unfortunately, this is not true either. Assessed values rarely accurately depict the actual market. This can happen for many reasons. The article that I wrote last month goes over several of these reasons. That article is posted on my blog Click Here. If you want to know what the market value is of your home, ask your Realtor for ALL comparable pending sales and solds in your area. Pending and sold data is the best indication of value. If you would like more information on the value of your property, contact me at 907-373-3575 or email me at Kristan@KristanCole.com