One of the most intriguing segments of the Alaskan real estate market is Multi-Family Property. Also commonly known as investment properties, these residences can offer potential buyers the opportunity to invest in real estate as a wealth builder. Often times, these provide owner occupants the opportunity to live virtually rent free, using the additional units monthly rent payments to subsidize their own housing expenses. Covering any structure(s) that contain two or more units, Team Dimmick pays extra close attention to these listings in order carefully analyze the benefits and risks in owning and operating these investments. Here are the latest ‘year over year’ stats from our Anchorage Multi-Family Market:
– Today we have 235 ACTIVE listings, this time last year we had 218 – ACTIVE INVENTORY UP 7.8%
– Today we have 58 PENDING sales, this time last year we had 77 – PENDING SALES ARE DOWN 15%
– Today we have 131 CLOSED sales, this time last year we had 130 – CLOSED SALES ARE FLAT
– Today we have an average sales price of $441,412, last year it was $451,131– AVERAGE SALES ARE DOWN 2.2%
– The average days on market is 78 Days, this time last year it was also 53 Days – AVERAGE DAYS ON MARKET IS 47% LONGER
– List to sales price Ratio is 97.7% (94.8% from orig), this time last year it was 98.5% (96.8% from orig), – BUYERS ARE GETTING ALMOST AN EXTRA 1% OFF THE PRICE – 2% MORE OFF ORIGIONAL LIST PRICE
These statistics clearly demonstrate a market where our current supply is greater than demand. With more listings sitting for longer days on market, prices have no choice but to drop. Sellers must reduce their asking price to compete, because in reality there are so many options and so few interested parties. Look no further than the pending sales being down 15% and investors negotiating for an average of 5.2% off original list price. For a typical Four-Plex listed at $500,000 this can mean upwards of $26,000 in savings. For buyers, our recommendation would be to look for cash-flow properties with longer days on market. For sellers, getting the units to turn key condition and pricing competitively will make your property stand out above the rest.
For any additional information, or to speak with Team Dimmick regarding our investment strategies, please call 865-6521 or email firstname.lastname@example.org.