Residential Market Absorption Report as of May 5, 2009 for Wasilla and Palmer Markets

 

 

Mat Su Valley Market Watch

First Quarter Statistics 2009

 

The first quarter of 2009 certainly started out slow.  The chart below shows the changes in the market from the first quarter of 2008 as compared with the first quarter of 2009.  The number of homes on the market has increased significantly and the number of sales has declined.  The volume of residential sales is down by 21% and the number of licensees has gone down 11%.

 

Where is the good news?  So far the sales in the month of April are outpacing last year by 10%.  With the $8000 tax credit available to first time home buyers, low interest rates, and a lot of inventory to choose from we are hoping the recent flurry of activity continues through 2009.  

 

 

 

If you have specific questions about the real estate market, please email me at Kristan@KristanCole.com

 

See below to find the absorption rate chart for this month’s Wasilla and Palmer markets. I havecompiled this data using the local multiple listing service and documented the data in this easy to read chart.

The definition of absorption rate is the number of weeks it takes to sell the current inventory at the present rate of sales. Absorption rates tell us how many months of supply is on the market based on historical data. For our purposes, we are tracking data over the last 12 months.

Residential Market

 

 

* Pendings – no sold.

 

Issue   Future Fannie Mae Loan – Primary Residence (effective May 21, 2008)     Future Fannie Mae Loan – Non Primary (effective May 21, 2008)       Future Loan with any Mortgage Company               Credit Score                 Credit History         Security Clearances                       Current Employment             Future Employment             Deficiency Judgment         Deficiency Judgment (amount)

Foreclosure   A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.   An Investor who allows a property to go to foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof of the last 7 years?”.  This will affect future rates. Score may be lowered anywhere from 250 to over 300 points.  Typically will affect score for over 3 years.           Foreclosure will remain as a public record on a person’s credit history for 10 years or more.   Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony.  If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance, in almost all cases, clearance will be revoked and position will be terminated. Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions.  A foreclosure, in many cases, is grounds for immediate reassignment or termination. Many employers are requiring credit checks on all job applicants.  A foreclosure is one of the most detrimental credit items an applicant can have and, in most cases, will challenge employment. In 100% of foreclosures (except in those states where there is no deficiency), the bank has the right to pursue a deficiency judgment. In a foreclosure, the home will have to go through an REO process if it does not sell at auction.  In most cases, this will result in a lower sales price and longer time to sell in a declining market.  This will result in a higher possible deficiency judgment.

Successful Short Sale   A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years. There is no similar declaration or question regarding a short sale.              Only late payments on mortgage will show and, after sale, mortgage will be reported as paid or negotiated.  This will lower the score as little as 50 points, if all other payments are being made.  A short sale’s affect can be as brief as 12 to 18 months. Short sale is not reported on a credit history.  There is no specific reporting item for “short sale”.  The loan is typically reported “paid in full, settled”. A Short Sale, on its own, does not challenge most security clearances.                   A short sale is not reported on a credit report and is, therefore, not a challenge to employment.        A short sale is not reported on a credit report and is, therefore, not a challenge to employment.        In some successful short sales, it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner. In a properly managed short sale, the home is sold at a price that should be close to market value and, in almost all cases, will be better than an REO sale resulting in a lower deficiency.

This information was received from a reliable source; however, The Kristan Cole Team Branch Office Keller Williams Realty, Alaska Group assumes no responsibility nor guarantees the accuracy of this document.  Please seek your own independent tax and legal advice.

The fed's made the decision to buy bonds and mortgage backed securities in hopes of bringing down long term interest rates.  So far so good.  Interest rates have dropped under 5% to their lowest levels in more than 30 years.  Whether you are a buyer or a seller, this is good news.  If you have a higher interest rate and don't plan on selling, contact your lender about refinancing.  If you are a buyer, there is no better time to buy with rates under 5% and with the $8000 tax credit available to many in 2009. 

Price Range	Active	Sold	DOM of Solds	Months
150-175	19	125		1.8
175-185	12	52		2.8
185-195	16	66		2.9
195-205	17	76		2.7
205-215	17	60		3.4
215-225	27	59		5.5
225-235	15	45		4
235-245	20	32		7.4
245-255	3	4		10
255-265	14	29		5.8
265-275	25	30		10
275-285	18	37		5.8
285-295	15	27		6.7
295-305	12	20		7
305-315	5	12		5
315-325	14	18		9.3
325-335	8	13		8
335-345	6	11		6.6
345-355	5	10		6
355-365	4	7		6.7
365-375	2	8		3
375-385	6	6		12
385-395	5	3		20
395-405	8	7		13.8
405-415	-	-		-
415-425	5	6		10
425-435	2	2		11.8
435-445	1	3		4
445-475	7	1		87.5
475-500	6	6		12
500-550	7	6		14
550-600	4	10		4.8
600-700	8	5		19
700-800	7	1		87.5
800-900	8	-		-
900- up	7	2		41

 

If you or someone you know is facing the possibility of foreclosure there are other options.  I have heard that there are a lot of home owners in the Palmer and Wasilla area who are behind on their house payments and don’t know what to do.  Most folks don’t know it, but there are options out there.  If you want to consider your options, call me or check out this site to see what options are available to you that you may not know about.

Caution:  For anyone facing a foreclosure life can become extremely stressful, as there are so many new issues that you will be faced with. In this time of change and uncertainty, there are actually people out there that are preying on others going into foreclosure. Scam artists are coming out of the woodwork and are offering homeowners facing foreclosure a “deal” to renegotiate their loans for a fee. What people need to know is that in many states it is illegal for a person to ask homeowners for an upfront payment to renegotiate a mortgage - unless the Department of Real Estate holds record of them meeting license and registration requirements. You can verify this information and also check to make sure that your real estate broker and attorneys have valid licenses at http://www.commerce.state.ak.us/occ/

Always be skeptical and remember to never give anyone money in advance of any services they are offering. There are many non-profit groups that offer legal aid for free of charge to homeowners that are having trouble making their monthly payments. See more information at this avoiding mortgage foreclosure website.

 

As most of you know, Enstar has raised the rates on our gas bills almost double in the last 4 years.  I received notice yesterday that MEA is raising their rates 16%.  How do we keep our heating and electric bills down?  Most people purchase window treatments, such as heavy drapes, blinds or shutters to complete the look they want to establish on the inside of their home. But curtains, drapes, blinds and shutters are also a wonderful investment that will help keep energy costs down, whether you are heating or cooling your home. Attic insulation is also one of the best ways a homeowner can reduce the amount of energy they are paying for in their home, whether it is for heating or cooling. Without proper insulation it will escape via the roof. Expect to pay between $500 and $700 to insulate a 2,000-square foot home. According to experts, insulation can save you up to 25% on heating and cooling costs. Don’t forget to seal air leaks in your home. By simply filling in gaps around your windows and doors and sealing ducts, you can save up to 20% on your heating and cooling bill. Last but not least, always replace or clean your air filters. By doing this small task each season you can save 7% in electricity costs per year.  A big savings can also come from reducing your thermostat by 2 degrees. 

I just listed two great new properties.  One is a bank owned REO foreclosure on Neil Circle for $118,500 and the other is a large home almost 2400 sq. ft. located at 3820 N. Fireweed Fields Drive for $229,000.  See the flyers with additional information about these two houses click here  You can also go to our Best Buy List to see our current best buy list.  Happy New Year Kristan

 

         I.            Resolve to stay brutally optimistic. See the opportunity in every difficulty and anticipate the most favourable outcome out of every situation. Whatever you look for, that’s what you’ll find. We can get better or we can get bitter; it all depends on the lessons we draw from each experience. Optimism is like electricity – very little happens without it. Know this truth: you have all the resources you’ll ever need to handle all the challenges you’ll ever have. It’s in the true emergencies that the true you emerges.

 

       II.            Resolve to identify the most powerful benefit you offer to the people around you and then deliver it. “The purpose of life.” Said George Bernard Shaw, “is a life of purpose.” What’s yours? Where are you investing your personal energy; self-preservation or adding value to others? Here’s the well-being paradox: if you’re only concerned about yourself, you cannot take care of yourself. Only by helping others can you succeed.

 

      III.            Resolve to pump up your personal vitality. In the game of life it’s not about whose right, it’s about whose left. Over 60% of us are more than 36 years old. The real currency of the new century is not cash, it’s about vitality. It’s the ability to keep going every day of every week of every month of the year with vigour and verve. All you are to the people around you is a source of energy and you cannot give what you don’t have. Ninety per cent of all adults do no physical exercise at all. More than half of us are overweight. A third of us still smoke. So, this year, resolve to enhance your physical, emotional and mental vitality. Take just a small step. First you’ll amaze yourself and then you’ll amaze everybody else.

 

   IV.            Resolve to be habitually generous. Success is not something you pursue; it’s something you attract by what you become. The more you give of yourself, the more favours you attract from others. People have a deep-rooted drive to give back. So resolve to search for ways to contribute to others. Here’s an interesting aphorism: live above the line. If the line represents other’s expectations of you, consistently surpass those expectations. You’ll develop what the business author Ken Blanchard calls “raving fans,” people who become walking billboards for you.

 

     V.            Resolve to go on a mental diet. Sticks and stones can break your bones, but words can scar you for life. Its humans, not elephants, who never forget. So resolve to use the language of conciliation, not the language of confrontation. Avoid the temptation to vent your negativity on others. Instead, use words that express your joie de vivre and connection with others.

 

   VI.            Resolve to be a global citizen, fully open to the cultures and influences of others. There is a direct correlation between personal well-being and openness to other peoples’ ideas and cultures. If someone has a different point of view, they’re probably right as well. There are no absolutes anymore, so welcome different opinions. Become a one-person champion of plurality. Not only will you make lots of new friends, but you’ll also gather multiple reference points to help you resolve personal challenges.

 

  VII.            Resolve to take control of your destiny. Don’t be so busy trying to make a living that you forget to make a life. Decide who you want to be and what you want to achieve and then stride boldly towards your vision. The most precious human commodity today is confidence.

 

VIII.            Resolve to increase your human connectedness. The person with the best connections wins. The wider your network, the more opportunities you generate. It’s all about trust. And it’s all about profile – your presence in the minds of the people who matter. So invest at least 10 per cent of your time broadening your sphere of influence. Connect with other people to opportunities within your network: cross-pollinate their potential. When you are with others, make every encounter a pleasurable one. When you listen, truly listen. And burn your fear of rejection.

 

   IX.            Resolve to increase your creativity by letting go of the familiar. Nothing is as far away as yesterday. Try to see the world through fresh eyes every day. As Salman Rushdie writes, every year is the Stone Age to the year that follows it. Listen to your intuition and follow your instincts, they’ll tell you what to do before your head has had a chance to figure it out. You are a Picasso or Einstein at something. Discover what it is and then develop it to the maximum.

 

     X.            Resolve to be you because others are already taken. You and I are at our best when we’re being authentic. We’re at our best when we’re being positively spontaneous because that’s when all our energy is being invested in the person in front of us or the task at hand. In a hyper-competitive world, we cannot afford to second-guess ourselves. Success in the new. So act now, because if not now, when?

 

         So what does life expect of you in 2009?

 

Better yet, what do you expect of yourself?  Well, here is the defining truth of the New Year; we are all being held to a higher standard.  The age of indulgence ended on Sept 11^th 2001. It is now the age of accountability.

 

So there you have it, 10 New Year’s Resolutions to help improve your life in 2009 whether you live in Alaska or one of the other 49 states. So decide. And act.  Used with permission from Lindsay Smith RE/MAX Spirit Inc.