Last 10 Years Residential Sales Analysis.
Here is my comparison for the last 10 years, Closed residential sales, for the core area of the Mat-Su Valley (Palmer to Big Lake), Existing & New Construction Homes. First, we have the # of closed sales which is where I think “the rubber hits the road”. 2018 saw an increase in sales of 4.35% from 2017, reversing the declines in 2016 & 2017 from the peak in 2015. My prediction for 2019 is that the # of sales will continue to increase and should break 1700.
There were 290 (about 17.5% of total sales) New Homes sold in 2018 which is up from 277 (17.45%) in 2017. New construction remained healthy in 2018 & in my opinion, should remain stable & likely increase in 2019.
Average “Days on market to accepted contract” increased from 60 to 63, about 5%. 2008 saw an average of 84 days, about where it stayed through 2012. It dropped to 70 in 2014 then 58 in 2015. Days On Market were 83 (the same in 2017) for new constrction homes & 59 DOM for existing homes.
The # of days from contract to close seems to be going down too. I usually estimate about 45 days. I did have one close in 23 days this fall which was great for a lender financed sale. I do expect an increase due to delays caused by the Big Quake and the Government shutdown (USDA funded loans are at a standstill and communication with the IRS is a problem).
Now we come to the average sales price for homes in the “core area”. 2018 saw an increase to $277,143 or 3.47% from 2017. New homes averaged $338,000 (up from $319,925 in 2017). The costs to build have been steadily increasing and expect that trend to continue in the future. The other big factor is increasing costs for good lots to build on.
Overall, I am optimistic about the state of our economy here in Alaska. Jobs are the key and we should be increasing after the declines of the last few years. The “silver lining” from the Big Quake is that badly needed money will flow to the construction industry creating more jobs as well (the good paying ones!).
Homebuyer’s, it is a good time to buy with some great deals available & interest rates, for now, in the 4.625 range (actually down from last Fall). Contact me, let’s put together a plan!
The market is still favorable to Seller’s as well. Let’s talk about your situation!