Good News:  Someone is going to Mexico.  It's true.  The winner will receive two airline tickets, one week stay in Cabo San Lucas at one of only 3 hotels on the beach downtown.  It's a great trip with lots to see and do.  Brad and I are always thrilled to see who wins.  So, come and join us for some Mexican food and help us celebrate with the winners of this year's trip for 2 to Mexico.  We will be hosting our open house on February 28^th from 5:00 p.m. to 7:30 p.m.  We will be announcing the Mexico winners at the party and drawing for other prizes too and of course we will be there to answer any of your real estate questions. We look forward to seeing you there!

 

The above graph gives you an idea of what happened in the real estate market in 2007 as compared to 2006 when the market was the hottest for sellers.  In 2007, the number of home sales slowed and the number of days on the market increased; those are negative indicators.  The average sales price increased, there were few homes on the market for sale, and interest rates came down; those are positive indicators.  So what’s happening now?  Through February 8^th of 2008 we have sold 14% fewer homes than we did during this same time period in 2007; the average sales price is 4% lower and the number of days on the market has risen by 14%; those are negative indicators. The positive news is that the absorption rate for homes under $275,000 is stable.  We have a 3-4 month supply of homes listed for less than $275,000.  When we have less than a 6 month supply of homes on the market, NAR (National Association of Realtors) defines that as a normal, stable market.  In 2007 we also saw our population increase to over 70,000 and new jobs went up by 1% and that was positive.  Together with low interest rates, I believe our market in 2008 will be similar to that of 2007 even though we seemed to have started out a little slower.  So for those homes priced under $275,000 and in good condition, they will sell with normal marketing time.  Those homes priced over $275,000 are in a pricing war and a beauty contest.  They need to be in the best condition and at the same time have the best price if they expect to sell.  If you want to know specific information about your home, please call or email me.  Kristan

Saturday night was the RE/MAX annual awards banquet in Anchorage.  It was a lot of fun to see old friends and enjoy a great dinner with my teammates.  Our team won several awards, #1 licensee with RE/MAX of Wasilla, #2 with RE/MAX of Alaska statewide, #2 for RE/MAX of Alaska Commercial Sales statewide, and #1 for RE/MAX of Alaska for total transactions statewide.  I am very proud of our team.  I also qualified for the Circle of Legends Award and was the first one in Alaska ever to receive this award and one of less than 100 RE/MAX agents Internationally to receive the award.  I owe it all to my community, my family and my team.  Kristan

Don't forget I am giving away two lift tickets and a one night stay at our condo at Alyeska on February 21st.  Email me to sign up to win.  This should be fun, our condo is very near the base of chair 3. 

I am sure many of you are confused by all of the information you are receiving regarding the real estate market and foreclosures.  What's true, what's not?  The truth is we are experiencing some foreclosures in Alaska.  According to the Anchorage Daily News article in Monday's paper, foreclosure filings for the 4th quarter of 2007 were .19% for Anchorage and the Mat-Su combined.  Not 19%, but .19%, meaning less than 1% of all households in Anchorage and the Mat Su are in foreclosure. 

If you add up all of the foreclosure filings for the entire year, less than 1% of the households in Anchorage and the Mat Su are in foreclosure.  Most of these foreclosures are because of the sub-prime loans that were made in the last few years.  Sub-prime loans were rampant in the lower 48; not so, here in Alaska.   According to the ADN, through the 2nd quarter of 2007, there were 13,580 Alaskans that had acquired sub-prime loans.  That is a small number compared to the number of overall home loans. 

So what does this all mean?  True there are some foreclosures in Alaska; but fewer by far than the lower 48 average.  True: the real estate market in the Valley is stable for homes under $300,000, interest rates are lower than they have been in 2 years, and job growth and population growth continued in the Valley in 2007.  Does that mean we are insulated from the National economic slow down?  No not totally, but we aren't going to be affected as much as those states who saw huge appreciation in short period of time (like Southwest Florida, Las Vegas, Arizona, California) and who also had a lot higher percentage of exotic sub-prime loans.  As I mentioned earlier this week, if you would like to see Neal Fried's (economist for the Alaska Department of Labor and Workforce Development) Mat Su Economic presentation he gave on Wednesday, just email me. 

Neal Fried presented the Mat Su Economic Report to the Valley Board of Realtors this week.  I have the power point presentation if anyone would like me to email it to them.  His report highlighted that our population continued to grow in 2007 with our population over 70,0000.  Jobs grew at 1% for 2007 which was the slowest growth since 1996.  He also shared that residential sales were down in 2007 as compared to 2004, 2005, & 2006.  If you want the monthly report you can sign up at Alaska Economic Trends. 

Shanna Lantto turned 30th today.  Shanna has been on our team now for almost 9 years.  We had a cake made for her by Diane's Catering and celebrated with her.  We told her she isn't older....just more mature! 

The CRS Certified Residential Specialist Conference was held in Oahu, Hawaii this year.  Brad and I were both invited to speak at the conference where about 900 real estate agents from across the country came together to learn more about selling is a soft market. 

Brad & I also got away for a much needed vacation to Maui.  We were supposed to go in October, but our trip got postponed as I work hard with others on Matanuska Maid.  We returned home to 20 below temperatures, but at least its sunny every day and the days are getting longer.  The real estate market seems to be picking up a little and that's good news for everyone. 

Happenings on The Kristan Cole Team:

Jesse Tanner my 2nd oldest son and also a listing partner on our team got married on Maui yesterday.  Here is a picture of Jesse and Jen on the beach as they exchange vows.  Makes a Mom cry (happy tears)

Brad Cole here on our team has a busy year ahead.  He is a Commissioner on the State of Alaska Real Estate Commission Board, the President of the Valley Board of Realtors, a Director on the Alaska Association of Realtors Board, and is a Director on the CRS Board (Certified Residential Specialist).  Whew makes me tired just thinking about all of those meetings.  This is great news for our community as Brad will have the pulse on National Real Estate issues as well as our local market.  If you have real estate questions, just leave a comment here on our blog and we will answer your question.