Friday, May 29, 2015
Tuesday, May 5, 2015
IS IT THE RIGHT TIME TO SELL MY HOME?
With the current low market inventory and low interest rates it is a fantastic time to sell your home in Anchorage.
Selling a home at a profitable rate is every sellers dream, and it is also a great achievement. However, for you to get the most proceeds out of the sale, there are many factors that you need to consider. Selling a home in Anchorage, Alaska is not any different from any other state as you also have to carry out intensive research on the property market and monitor the trends before making that crucial decision to list your home. The most important aspect is to analyze interest rates and understand the level of inventory in the real estate market for your location.
Low interest rates encourage buyers to buy homes. With record low interest rates more buyers are able to qualify to purchase a home AND low rates also mean buyers can afford more (lower interest rates means a lower monthly mortgage payment)….a lower payment lowers the buyer’s debt to income ratio.
As far as understanding inventory in your market, it is best to contact your local realtor for this statistical information since they have access to their MLS data. The rule of thumb that the inventory is highest during summer, which is the time when most people offer their homes for sale, and lowest during the winter since few people are willing to sell their home, is not always correct. Your Realtor can pull up the trends and current data for your specific neighborhood.
Winter in Alaska might be over, and the summer is in full force, but the real estate market has not yet been affected by the change in seasons. The low inventory and low interest rates are making it the best time for home sellers to relinquish the ownership of their homes to the highest bidder. There are various signs that show why this is the best time to sell a home in Anchorage.
1. HIGH PRICES FOR ACTIVE LISTINGS
The Anchorage real estate market has been experiencing good tidings since the start of the year. The boom in the sector is evidenced by the increase in sales volume from $167 million at the end of 2014 to $189 million at the moment. The average price of homes in Anchorage, Alaska is between $327,000 to $349,350 depending on condition and location. There has been a slight rise in inventory for homes valued around the $500,000 price point, and there are homes on offer for 21 months with prices ranging from $700,000 to $999,000. However, most houses in Anchorage are listed for an average of 2.43 months or less. The high prices spell good proceeds for sellers since they will make exceptional profits after making the sale. Consequently, the high prices translate to more profits for the seller that they can later invest in other profit generating activities.
Recently, there has been a population upsurge due to increased birth rate and job relocations which has created the demand for homes in Alaska. People have been moving to Alaska from other states such as New York and Wyoming and Texas. These newcomers are willing to part with a substantial amount of money to get a decent home; hence they are another reason for the high prices in Anchorage. However, this high cost is not only experienced in Alaska as there has been a recorded 6% rise in prices of homes countrywide.
2. LOW INVENTORY IS AN ADVANTAGE TO SELLERS
The small inventory means that sellers have an advantage in the Anchorage real estate market. This can only change if the supply for homes will dramatically increase which is not likely to happen anytime soon. That is because, if we account for the time that can be spent constructing a home, then the inventory is likely to be quite small for some time. Only those who have an already built home can cash in on this booming market. If you are a current homeowner and wish to relocate, downsize or invest your home equity into another profitable income property, this is the right time for you to make that sale and take advantage of the situation. The extra money that you will make will surely go a long way in improving your financial status.
3. INTEREST RATES ARE AT AN ALL TIME LOW
The advantage of maintaining low rates all the time is that they will attract numerous buyers as they hurry to buy homes before the rates escalate towards the end of the summer season or in spring. That will create competition for the home that will also increase its price. Research indicates that the best time to sell a home is when the interest rates are low. The rates of mortgages in Anchorage Alaska have been low for some time now, but economists predict that they will escalate in the near future. This trend has surprised many because the Anchorage market is known to be quite vibrant and unpredictable. Therefore, any seller should take advantage of the prevailing situation and offer their homes for sale before the rates go up. If you are considering selling your home in Alaska and have no prior experience in this type of business, you do not have any to worry about how you will go about it. That is because you can still successfully navigate the process, by just enlisting the expertise of your local Realtor.
Other factor that can influence buyers to purchase a home is if the cost of renting becomes greater than the cost of buying a home. Since Anchorage’s rental market is extremely competitive and lease payments are high, it will make better sense to acquire a mortgage and buy a home rather than spend it on rent.
Selling a home requires careful considerations and planning to ensure that you will make the sale at the best time possible and gain the maximum returns with the least amount of time and hassle. If you are looking to sell your home the first step is to reach out to your local real estate professional for a FREE consultation and FREE MARKET ANALYSIS REPORT of your homes current value. You can contact our listing specialist at Alaska Home Group of Keller Williams Real Estate at 907-865-6540 or visit our website at www.AlaskaHomeGroup.com
Take advantage of the ready market and the favorable conditions and make a substantial watch as your money multiplies.
Kylie Wyze: Keller Williams Real Estate
101 W. Benson Blvd., suite 501
Anchorage, Alaska 99503
"Now is the right time." – Lotus Sutra
Monday, May 4, 2015
Friday, May 1, 2015