Thank you, Alaska, for the tremendous support and response to our affiliation with Berkshire Hathaway HomeServices. Extending our marketing reach with Adwerx, Videolicious and a global website provides more opportunities for our sellers that, frankly, we were previously unable to provide as Dwell Realty. For real estate needs we are now truly connected to not just the lower 48 but the entire world. I want you to know we have been warmly welcomed into the Berkshire Hathaway family of companies. I have heard from Berkshire Hathaway HomeServices affiliates in Oregon, Florida, Nevada, Hawaii, Wisconsin—to name just a few. In my forty years of real estate, I have never felt so welcome and the sharing of technology and marketing has been overwhelming. I know there are more opportunities to benefit our buyers and sellers to explore so stay tuned.
I have taken a deep dive into our local market. Whether its historic low mortgage rates or lack of inventory, the market is holding steady. Buyers should not be afraid to move forward with a new home purchase—whether downsizing or upsizing. Nationally new home sales jumped over 16% in May. This week in Anchorage there is a little more single family inventory to select from. Actives rose by 56 homes in Anchorage but with only 421 homes on the market it is still the lowest inventory in the last five years. Inventory for Eagle River homes is also the lowest in the past five years with only 100 active for sale. Pending sales are approximately 30% more this past week compared to last year’s. On a broad analysis, there is pressure in the market for increasing values with the average YTD sales price now at $390,269– a 4.11% increase. However, sellers should be cautious with their pricing. Average or median values are a broad sweep and should not necessarily be the primary indicator for a seller’s best pricing strategy.
At Berkshire Hathaway HomeServices Alaska Realty, we use a spreadsheet with nineteen different categories to determine the best asking price of a home. We look at active, pending and closed sales within the MLS district or community during the last six months because the market is always changing. We track original list price to final sales price and compare every property by number of beds, baths, living square footage, garage size and lot size. We look at the year built, the year remodeled or ‘refreshed’ which means new carpet and paint. We do not compare ranches to two-stories and distinguish between homes with or without a basement. With basements, we evaluate whether they are full walk-outs, daylight with egress windows or just window wells. And, yes, we look at price per square foot but almost as important is whether or not there has been appropriate home maintenance and good housekeeping. Attractive landscaping adds value and so does enlarged decking. We also evaluate seller paid closing costs and days on the market. Mountain views add value and so do cul-de-sac locations.
Every home, every location is unique. A home is as individual as the owners and buyers have an intuitive sense of whether or not the home has seen good care which in turn adds perceived value. For a complimentary market analysis, contact us at Berkshire Hathaway HomeServices Alaska Realty.