Upper End Inventory in Oversupply

As of today there are 76 homes for sale from $700,000 to $1.5 million. In the lower half of this range the rate of home sales for the past 12 months has been three per month. Above $1 million the average is one per month.

This works out to available inventories of just about 17 months and just over two years, respectively. By comparison, the supply of mid-range homes, $350K to $750K is about six months. Below that range, the supply is only one to three months at best.

The good news is that the upper-end homes that have sold have enjoyed relatively brief marketing times, often under 90 days, and less than a month in several cases. This means that a large portion of the inventory is not reasonably priced. However, the home that is priced at market will sell.

Those that languish will end up selling for less than they would if correctly priced at the outset. Sadly, some other more optimistic sellers will altogether withdraw from a market that has rejected their properties.

For full property searches, virtual tours and many other Anchorage real estate resources, visit RealS8.com.

Property Tax Payment Due June 15

This year my wife and I won't forget to ask each other whether one of us paid the first half property taxes! Judith and I did forget one year, and to our chagrin learned that the penalty is 10% of the payment amount, several hundred dollars in our case. There's interest on the unpaid amount, too.

Most people have their property taxes paid from their lender's escrow account, so no worries. But if you don't have an escrow, you have to remember to pay that first half tax bill with a check mailed by midnight next Thursday, June 15. (They don't have to receive it, just have it postmarked by then.)

If over the years you have built up a substantial equity in your property and there is still in place an escrow for taxes and insurance, consider asking your lender to excuse you from it. Assuming you are a good money manager, pay these bills yourself when they are due. Otherwise you are simply making your lender an interest-free loan of more than enough money to cover these expenses!

If you closed a purchase or sale this year it is likely that the taxes were paid for the year at that time. There would have been a proration between buyer and seller. Don't forget to write off your share when you do your taxes next year.

Don't bother with the options of paying by direct debit, or credit card. They charge 3%, more than the cost of just buying airline miles, if that's your motivation.

These and other FAQ's are on the MUNI's web site at this location.

For full property searches, virtual tours and many other Anchorage real estate resources, visit RealS8.com.

Niel's Web Resources Enhanced

I'm offering enhanced resources for sellers, as well as buyers, on my web site. "What's My Home Worth" is especially popular. Owners can get an EMail valuation. The Seller-oriented page is here.

The equivalent page for Buyers is here.

People tell me the Anchorage Real Estate Podcast, a short on-line radio interview on market conditions, is a first for Anchorage real estate information. And the push-to-talk-to-me button is popular: even my mother in Vermont uses it.

For full property searches, virtual tours and many other Anchorage real estate resources, visit RealS8.com.

Building Permits Hold Steady

The MOA Building Safety folks report 164 new home permits issued through April this year, the same as last year. In 2004 and 2003, however, the equivalent permit level was about 50% more, around 250 each year. Land use permits for Eagle River totaled 77, the same as last year.

The MOA's system for reporting remodeling permits was changed this year to include everything that requires a permit, such as replacing a water heater. Now it is not as easy from their reports to track whether larger-scale remodeling activity is up.

From industry contacts and conversations with contractors, however, it does appear that more people are undertaking to update and even expand their homes. This could be attributed in part to fewer new homes available. But also we have a large number of homes that are now 25 years old from the early 80's building boom that are in need of modernization.

For full property searches, virtual tours and many other Anchorage real estate resources, visit RealS8.com.

Anchorage Home Sale Prices Top $300,000

The average year-to-date selling price of a home in Anchorage has just topped $300,000. At the same time last year it was a little under $270,000. By contrast with the Lower 48, however, Anchorage homes are less costly. Average home values in many equivalent markets are closer to $400,000 at this time.

The year-to-date total of closed sale reports reaching Alaska MLS Inc. through April is lower this year: 822 vs. 899. These are reports of contracts agreed to a month or two earlier in most cases. The data through May should be available in about two weeks.

Meanwhile, the number of homes listed for sale at the end of every month this year has been higher than most years since 2002. For the past four years the springtime inventory has been around 500. This April the inventory rose to 622, higher than any late winter and spring inventory levels since 2001.

Given that prices are continuing to rise, I would say that inventories have not yet reached levels where supply exceeds demand.

For full property searches, virtual tours and many other Anchorage real estate resources, visit RealS8.com.