The Matt Dimmick Team prides itself on an extensive market knowledge that provides insightful advice for our clients. One of the tools with which we gain these insights is something called the “TMO Reports”. Attached here are Current Market Reports called the “Total Market Overview”. These break down the various statistics for houses, condominiums, vacant land, and multi-family properties that are on the market, organized by price range. Stats like the “List: Sales Price Ratio” and “Months of Inventory” give us a fantastic idea of which homes are selling, for what price, and the time frame for these transactions.
In this week’s report Listing Specialist Liz Steele will be doing a deep dive on the Mat-Su Valley Market for Single Family Homes. Click Here to View the Mat-Su Valley Single Family Home TMO.
Attached here is a report called the Total Market Overview. This report shows the market trends for Mat-Su Valley Single Family Homes based off of the last 6 months of Multiple Listing Service history. This is a report our office produces on a weekly basis, and if this is something you would like to receive regularly please let us know.
I have compared this report dated 11/13/17 against last year’s report dated 11/14/16.
Here is what I find interesting:
– Today we have 813 ACTIVE listings. Last year we had 715 – ACTIVE INVENTORY IS UP 13% (98 homes)
– Today we have 230 PENDING sales. Last year we had 241 – PENDING SALES ARE DOWN 4% (11 homes)– Today we have 844 CLOSED sales. Last year we had 890 – CLOSED SALES ARE DOWN 5% (46 homes)– Today we have an average sales price of $276,953. Last year it was $266,929 – AVERAGE SALES PRICE IS UP BY $10,024 (3.7%)
– The average days on market is 53 Days. Last year it was also 52 Days – Essentially a Flat Market Time
So what does this mean for you?
Despite there being MORE INVENTORY and FEWER SALES, Single-Family home values are going UP. Normally under these circumstances (higher supply and lower demand), prices are flat, but the market is not trending this way. More and more people who are tired of the higher cost of living in Anchorage or Eagle River are choosing to move to the Mat-Su Valley. Not only are homes more affordable, but listings tend to be larger homes sitting on larger lots, AND there are multiple new construction properties available. In the last 6 months, 133 of the 844 closed sales were for new construction (15%). Over that same time period, 158 of the active listings were also new construction (19%). Bottom line: you get more ‘Bang for your Buck’.
Overall, owning a home in the Mat-Su is an extremely appealing prospect. There are more jobs available and new development occurring, despite Alaska being in a recession. Home values are going up (This is the only market segment seeing growth at this time) and builders are giving buyers the opportunity to purchase affordable single family homes on spacious lots.
So…Are you still thinking of buying in the Mat-Su? Be prepared for this reality: Prices are not projected to go down anytime soon. If you want new construction now is the time to start the home buying process. If summer of 2018 is your deadline for a move, then time is of the essence to start planning with a builder.
And, if you plan to sell a home in the Mat-Su Valley then be prepared! There is more active competition (a 13% increase) AND fewer buyers purchasing those homes (a 4% decrease). This means there is a 17% gap compared to last year. The only way to protect yourself against this discrepancy is to list a home in fantastic condition. Buyers are moving to the valley because they want clean, new, affordable, and turn-key. Be prepared to compete against new-construction properties, where buyers get to pick out paint colors, flooring selections, and finishes. Be prepared for buyers who want to look 2 or 3 times before making an offer. Sell them on the benefits of buying an existing home (no construction delays, the fenced and landscaped yard, included appliances, established neighborhoods, quicker closings, etc.) And most importantly hire a Realtor who knows and understands the market and can relate that perfectly to your individual needs.