Russell

According to recent statistics, the supply and demand of renting is hitting the roof as rental costs soar. So many homeowners in the past 5 years whom lost their homes to foreclosure and short sales have created a rental housing shortage therefore rents have soared! See this article posted today in by the National Association of REALTORS: http://rem.ax/1bUB6tL.
Even around the office here at RE/Max Dynamic in Wasilla the property managers report that increasing rents have now begun to pay the mortgages of those whom choose to rent vs. sell in the downturn and try to save their credit ratings. Now with low interest rates, and your good credit, if you are renting it may just be time to consider buying. Rental shortages and rental rates are only expected to get worse.  Don’t wait for interest rates to rise as expected in 2014 as it will dampen your purchasing power.
Looking to buy now? Consider this starter home, private setting and great equity builder as you update this very affordable home:
http://rem.ax/1bUCPzi

Everyone at one time or another is concerned with mortgageg interest rates. Today and for the past 4-5 years we have been experiencing all time low rates or at least less than 5%. The FED, or Federal Reserve, has continued to purchase up to $85 Billion per month of mortgage backed bonds in the Secondary Mortgage Market to create a supply of money to allow mortgages to be available to you, Joe Public, and myself. This issuing of mortgage bonds has kept the borrowing limit very low and there has been some indication that it will not continue. However, given the delicate nature of the recovery from the Recession the low rates we have become accustomed to will remain for the immediate future. Here is a write up from Elliot Eisenberg a trusted economist on Real Estate on the tapering of the mortage back bond purchases and thus current interst rates:
Given the government closure and resulting lack of economic data, the fact that Q3 GDP growth will be below 2% and that inflation remains very tame, virtually guarantees that tapering will not commence following the conclusion of the late October Fed interest rate setting meeting. Now with the formal nomination of Janet Yellen for the post of Chairman, I’m 100% sure tapering will not commence before January.

Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC

Therefore you can rest assured interest rates will continue to remain at or near current levels through the remainder of 2013.
Please visit my blog and Real Estate Website at www.RussellJoyce.com
Building on Real Estate Market Knowledge and Investments strategies that work for You

Just attended a national meeting of MLS’ in Boise ID where much discussion revolves around the value of MLS public facing websites and other Real Estate sites such as REALTOR.com, Zillow and Trulia and 50 or 60 other sites. These sites all receive the information on listings you search for from the MLS into which I submit listings. Very interesting that everyone has a favorite place to search although really unconcerned with the quality of the data they are looking at. I for one, hope that you, the public at large who love to look at property, use my website first and the MLS public website second and all the others combined last. However, the reality is the public searchs for information the other way around. Going to Zillow.com or Homes.com on a regular basis and creating a mega use site that gets the info for free and ultimately become Billion $$ companies. Just trying to get the word out to the public that many of these sites boost the cost of buying and selling homes. They take money out of the active Agents pockets and make the Real Estate market more confusing to negotiate. Please consider creating relationships with trusted individuals, especially REALTORS, in the communities in which you intend to live. They provide you with the best search and most accurate infomation about the Real Estate listings in your community. The Zillows and Trulias on the internet sell your info to the highest bidder thus the sucking money out of the market place and you get the result; inexperienced agents and others unable to build a business relationship that you can trust.
Call me, Building on Real Estate Market Knowledge and Investments strategies that work for You.

In a tight Real Estate market you might expect to see most selling quickly if the home is priced right. That is true to an extent and very true in our SouthCentral Alaska market for homes that are great first time home buyers or those looking to fix up a foreclosure or short sale. Just happen to have a dandy estate sale home here that is in really good shape but could certainly use some updating. Very private lot off a shared driveway with wonderful neighbors. This prow front home with 3 br/ 2 baths has a storage shed and plenty of room for a shop/garage. Great price check out this flyer and the listing in my site:

Many of the elements that go into buying and selling homes are changing with the times. The one thing that is constant is change. Home prices in Alaska continue to have stability, however, change is coming with interest rates climbing and the likelihood of rising prices based on consumer demand in many price points. Along with rising interest rates the past several weeks buyers are experiencing a loss of buying power. Many are hitting the market with renewed enthusiam to find a home before rates climb further which causes prices to climb based on limited availabilty. For Sellers this means we have an excellent opportunity to have your home on the market!! Although, any time you need to sell a home based on various situations that may arise it is a good time to sell given your personal circumstance. Buyers tend to take advantage of the opportunity presented and right now that is to buy before their buying power is limited by Change!

Winter just won’t loosen it’s grip on Southcentral Alaska as we are experiencing one of our longer waits for Spring. Freezing nights have kept lakes, streams, and ponds from thawing as well as that persistent snow in many areas. Home buyers, at least in the upper price ranges, seem to be holding off on active home looking and buying as well. Good news is mortgage interest rates remain low, check today’s rates, and homes that show only modest appreciation in value the past couple of years, combine to makes this the best time to buy. However, many professionals in the industry are asking “what gives?” with buyer interest and low inventories. My opinion is the low consumer confidence and turmoil around the world is combining for a similar pattern as our lingering Winter weather. For Buyer’s in the Mat-Su Valley, and more specifically Palmer and Wasilla, this means a great time to purchase, especially in certain segments: ie – homes price over $400,000! as there are 84 active and 16 pending listings and a total of 18 Sold Listings in the last 6 months. This translates to an inventory of 2.7 years supply! vs. the same price point in October 2012 when inventory saw an 18 month supply. Sellers in this price range must be negotiable to sell and buyers will find deals. Inventory of homes in the $200,000 to $400,000 price range are 328 active listings with 186 pending with 238 sold in the past 6 months. This translates to a 7 month turnover and approximately a 50 day supply. Sellers will be getting multiple offers and Buyers might be fustrated if they make low offers and miss out. The under $200,000 price range has inventories of Active listing that very tight and in some specific price points, pendings exceed active listings. For would be Sellers this translates to getting your home on the market quickly up to the $400,000 range and ready to sell, ie; clean and maintained. Above $400,000 I recommend a willingness to negotiate and offer incentives to any prospective home buyers.

We’ve known this all along but again NAR has posted the results of those projects that will give you the most bang for your dollar in getting your home ready for sale. Exterior projects rank # 1 in return on investment starting with that front door! Check out this article from NAR by copy and pasting to your browser. http://rem.ax/Vu9UuL You can also go to http://www.houselogic.com/ and see this story in full. Houselogic allows you to create your own site to track your home expenses and see what the benefit might be for various projects and expenditures you make to your home. Main take away from this is when your home is listed for sale presentation and curb appeal is #1 in must do’s. Front door painting and replacement is first and foremost but don’t forget all the area around the entry, porch, walkways, etc. All must be kept clear and inviting. Please call me for any additional pointers that maybe helpful.

For home buyers the year 2012 will go down as the best year to purchase a home base on the affordability index, this according to National Association of REALTORS®. See aricle by copying and pasting this address to your browser; http://rem.ax/VS2DjL. The affordability index is a measurement of average wages, national home price averages, and current interest rates. Based on these measurements 2012 was the highest ever at 198.2 as of November. All indications are 2013 will be the 3 highest year for affordability of homes. This means, Buyers should not linger or fence sit while the best time to purchase a home passes you by. This holds true for up sizing home as well as down sizing. Great news in this economy for those looking for a home to live in. Contact me for more info.