real estate stats

 
The two greatest sources of information about the real estate market and the economy are the information provided by the Alaska MLS and the Anchorage Economic Development Corporation. The data they gather and compile month to month, quarter to quarter, and year by year offer me a lot of insight on how to market properties, who the potential buyers are and when they are looking to buy.

Anchorage has withstood many tests over the last couple of decades and for a period of twenty years (1988-2008) had uninterrupted growth despite the 'Lower 48' woes and recessions in the last twenty years. Consumers are more and more savvy these days in researching and understanding the real estate market when they are looking to buy or sell. You are likely one of those consumers who leave no stone unturned. I'd like to show you what gauges Realtor's use to understand what the market is doing on a regular basis.

The three key statistics are average sales price, absorption rate, and the days on market. I would say the following data are highly accurate as it is collected by the Alaska Multiple Listing Service and is readily available to the public and licensees.

Anchorage Residential Average Sales Price
as of August 2011

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What we can infer about the average sales price is it's relationship to the previous years hasn't been the roller coaster ride we've expected with this recession. Most people anticipated and expected a 1% to 3% average increase in their home values every year. Though we aren't having a major backslide in the average sales price we certainly aren't seeing the 1%-3% increase in average sales price we've enjoyed for years.
As it relates to right now: no one can say for sure where the 'bottom' of the market is. When the interest rates on mortages are so low it's easy to say now is the right time to buy. But I can't say if sales prices are going to start creeping back up soon...I'll keep you updated as new information comes from the Alaska MLS.

Anchorage Residential Absorption Rate
as of August 2011

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According to the Alaska MLS the absorption rate is the number of months, so long as no more homes are put on the market, it will take to sell all of those homes in the inventory. This is based on the number of listings currently on the market divided by the average number of homes sold in that price range per month. For example, your home is listed at $350,000 and the current inventor is 810 homes in your price range. At a rate of 152.83 homes sold per month it will take 5.30 months to sell them all. Is this to say that your home will for sure sell in five to six months?
Not necessarily. The home's condition, price, marketing used, and other factors will either lend to a speedy sale or inhibit your position in the market. For sellers, the abosorption rate can tell us if there are many or few buyers in your price point. The higher the absorption rate the fewer the buyers. The lower the rate the more buyers are competing to buy homes.  For buyers, this is great information for you during negotiation. If the seller has had the home on the market longer than the absorption rate time this seller may be more motivated to strike a deal.

Anchorage Residential Days on Market
as of August 2011
The current average days on market is 55 days.
So far we have seen that the average sales price is maintaining itself over the tumultuous last four years and homes on the low and middle positions of the market are doing well selling, finding their buyers and making a deal. The average days on market are staying true to form which leads me to say with confidence that the Anchorage real estate market is doing very well despite doom and gloom elsewhere. Sixty days is a good estimation for you to sell your home but I would say that if you haven't received an offer within the first three to four weeks to re-evaluate your price.