Eagle River Alaska Real Estate Blog

Bill Babylon

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September 1, 2010 Update:  So what is happening in Eagle River Real Estate Sales?  Last month, 39 single family homes and 6 condo’s were under new ownership in Eagle River.  In August a year ago, 48 single family homes and 4 condo’s changed hands.  So, sales have slowed some—just like in the rest of our Country.  Where we differ is that prices in the rest of the country are still declining a bit and ours are mostly stable.  (The average sales price in Eagle River actually increased about 3% in July.) 

So, is it a good time to buy?  My answer would be an emphatic, yes!  My response is heavily weighted by mortgage interest trends. 

Just in case you haven’t been following them, today’s 30-year conventional mortgage rate was at 4.25%.  The VA and FHA rates were the same, 4.25%.  We haven’t seen rates this low in 40 years.  Why, your parents probably can’t recall when rates were this low!  So, why are folks waiting to buy?  Hoping for a decrease in prices?  Is that logic sound?  Let me provide an example from which you can draw your own conclusions.

Let’s say you bought a $325,000 dollar home, the average for Eagle River.  And for the purpose of illustration, you got a $300,000 loan.  If prices went down, and the house dropped 10% next year, you would lose $32,500.  If you got a loan for that same home, today, your principle and interest payment would be $1,476.  If interest rates go up next year to 6% (We cannot really predict where interest rates will be next year, but 6 % is a reasonable possibility) then your payment would be $1,799.  The payment difference is $323 each month.  That’s as much as a car payment!  Over 30 years that difference is $116,280!  Can you afford that?  Wouldn’t it be better to be putting that into your retirement fund? 

If that makes you feel like it is time to buy or sell a home in Alaska, I am available to assist you in exploring the possibilities.  Or, for more information on homes for sale in Eagle River, Alaska, click here.

What is Alaska's Weather Like?--An Anecdotal Account

There it was--today’s Anchorage Daily Newspaper--blown to the middle of the road by the 50-MPH breeze we were experiencing this morning.  It made me think of how what others would call “extreme weather” is so routine to those of us who live in Eagle River and Anchorage.  It is part of our living-in-Alaska bravado!  So, what is the weather like in Eagle River?  And how does it affect us?

Eagle River is in what some Alaskan’s call the “banana belt,” a reference to its warmer climate (when compared to Fairbanks).  Average temperatures in the summer range between 50 and 75 degrees Fahrenheit and in the winter between 0 and 30.  Extremes in summer reach 85 and in winter, 25 below.  Our secret to comfort, though, is our low humidity.  Once acclimated, you can play golf in shirtsleeves in the summer at 60 degrees, and you won’t need  much more than a sweater until we get into the 30’s.  In fact, sourdoughs (those who have lived in Alaska for more than a few years) dress in layers throughout the winter and bring out their heavy stuff at about 0.   These temperatures seldom require air conditioning, so most of our homes have none—but of course a good heater is quite important, and a cozy fireplace is useable about 8 months of the year.

It might surprise you that “hurricane force” winds are common here.  Depending on the front that is moving across our mountain ranges, primarily the Chugach, today’s 50-MPH breeze is an every month occurrence.  We get 80-MPH winds 6 or 7 times a year.  That fact invites a close inspection of any home you are considering, to ensure the roof has 100-MPH shingles. 

It has been a particularly rainy Summer, with very few sunny days since about the 4th of July.  (It’s all good—the fish still bite in the rain.)  July usually has less rain than August, often causing alarm at the dryness of the local hillsides and some concerns about wildfires both in the city and throughout the State.  But this year, the clouds provide a different vision of the mountains and the inlet, every day.  My awe at our views continues, with something different to notice, daily.  I marvel at the Creation! 

 But what about precipitation in the winter?  Yes, we get it—and some years lots of it.  Expect to see snow (affectionately known as “termination dust”) (go on, ask me, Why?) on the mountains beginning in mid-September.  And from about the end of October until the middle of April, you are likely to have snow in your yard.  Some days it will cause you to get up early to shovel your driveway, and some days you’ll work on it when you get home from work—or better yet, have the kids shovel it when they get home from school, because it is fairly certain that they went to school, even if it was snowing.  It takes a pretty heavy snow storm to close schools here.  I cannot recall even one snow day last year, and I do recall several days when I had to remove 8 inches of snow from my driveway.  That makes a snow-blower a very important tool in one’s shed.

All this snow gives some plausibility to the jocular phrase, “Alaska has 4 seasons—June, July, August and Winter!”  Alaskans revel in them all!

All of the above is written from personal experience and has absolutely no basis in researched scientific records.  But, I am certainly willing to share my experience(s) living in Alaska with you.  And I am certainly available to help you buy or sell a home in Alaska.  For more information on homes for sale in Eagle River, Alaska, click here.

July 29th Update

I am delighted to have been chosen by Roger to assume his web presence.  While I am familiarizing myself with it, please continue to use it as you have in the past.  I will do my best to continue its excellent messages and to provide tidbits on living in Alaska and on the Eagle River Real Estate market.  I will soon provide a bio and picture so you can get to know me as I want to get to know you.  If you have questions, please ask.  I promise to respond in a timely manner with the best information I have available.  And, if you want more information on Homes for sale in Eagle River, Alaska, click here.

Number of Homes for Sale Rises Slightly

The number of homes on the market in Eagle River rose slightly last week. Eighteen new listings came on the market while 15 sold or came under contract, for a net gain of 3 homes. This is typical for this time of year, and represents a somewhat steady increase since February. As of June 21st, the total number of homes for sale in Eagle River was 213.

So far this year sales prices have been steady; the average sales price year-to-date is approximately $323,000, which represents a slight increase (less than 1%) over 2009.

For more information on homes for sale in Eagle River, Alaska please be sure to visit http://www.HomesOfAlaska.com

Median Sales Prices Rising

Median sales prices rose all three months of the first quarter of 2010 in comparison to 2009 for Anchorage, Alaska, including Eagle River. Both January and March posted 3.1% increases compared to the same months in 2009, while February posted a very healthy 9.1% increase. These numbers reflect the continued stability of the local housing market.



Deadline for Home Buyer Tax Credits Draws Near

Home buyers wishing to take advantage of the generous tax credits need to start thinking about finding their new home as soon as possible. Even though the deadline to close on a newly purchased home is still months away, the law requires that would-be buyers be in a binding contract no later than April 30, 2010.

Eligible first-time home buyers can receive up to an $8,000 tax credit, while eligible repeat buyers can receive up to $6,500. A first-time home buyer is defined as someone who has not owned a principle residence in the last 3 years. Repeat buyers must have owned their current home for 5 consecutive years out of the last 8 years at the time of closing on the new home. For both first-time and repeat buyers, the home being purchased must be used as a principle residence. Income limits also apply; to ensure eligibility buyers should speak to their tax professional as well as their REALTOR.

Tips for Buyers:

1. Don’t procrastinate: To have any chance at finding a home and having an offer accepted by the end of April, buyers will want to wade into the home buying process right away. The immediate steps include making a final list of desired home attributes, scouting favorite neighborhoods and areas, contacting a bank for mortgage pre-approval and beginning the home search process. Home buyers who have a house to sell need to act NOW and should price it aggressively to generate interest and a sale in time to close on their new house by the June 30th deadline.

2. Don’t count on another extension: The tax credits won’t be available forever. To guarantee you can take advantage of it, act now.

3. Mind the interest rates: Interest rates are low right now, hovering around 5%. Anyone considering a home purchase in 2010 should do it now to take advantage of the cheaper cost of borrowed money in addition to the tax credits if they qualify.

For more information on the Tax Credit or to get started with the home-buying process, please contact me right away and I will be happy to assist you. If you have a house that you will also be selling, I would be happy to provide you with a market analysis showing the value of your current home.

For a complimentary Tax Credit Fact Sheet, please email me at roger@homesofalaska.com

Best Regards,
Roger

Alaska Housing Market Holding Strong

Alaska’s housing market continues to perform well despite the nantional economy. A local news story about homes sales in Anchorage and Eagle River reports that the first time home buyer tax credit, recently extended and expanded to repeat buyers, has had a positive effect on the real estate market. For more information about the Eagle River, Alaska real estate market, or to view homes for sale, please visit http://www.HomesOfAlaska.com

 

Great News for Eagle River Home Buyers & Sellers

Great news for home buyers and sellers in Eagle River, Alaska (and the whole country, in fact)...the First Time Home Buyer Tax Credit has been extended AND expanded to many repeat buyers. The video below is my recent interview with The Alaska Real Estate Showcase about the new Tax Credit law.

Eagle River, Alaska Real Estate Update

The number of homes for sale in Eagle River, Alaska continued to decline last week. A total of 13 homes came off the market (either came under contract as sale pending or closed) while only 2 new listings came onto the market during the same period. Currently, there are fewer than 100 active residential listings on the market in Eagle River.

Extension of the First Time Home Buyer Tax Credit, as well as the expansion of the program to qualified repeat buyers, is expected to entice more buyers into the market. This in turn should keep housing inventories low in Eagle River throughout the winter and into spring. To learn more about the Home Buyer Tax Credit, please see my previous blog post.

Until next time…

Best Regards,

Roger

Tax Credit Extended, Now Available to Repeat Buyers As Well

The $8000 first-time home buyer tax credit, previously scheduled to terminate at the end of November, has been extended for an additional 5 months. Additionally, the new program, signed into law by President Obama on November 6th, gives move-up and repeat home buyers a sizeable tax incentive as well—up to $6,500.

Under the new law, qualified first-time and repeat buyers have until April 30, 2010 to enter into a binding contract, and until June 30th to close to be eligible for their respective tax credit. A first-time home buyer is considered a buyer who has not owned a principle residence within the last 3 years. Eligible repeat and move-up buyers must have resided in the principle residence they are selling for at least 5 out of the previous 8 years.

The new law also raises the income limits, allowing more people to take advantage of the tax credits. Eligible buyers with incomes up to $125,000 for singles and  $225,00 for couples will qualify for the full tax credit.

For more information about the new tax credit law, please contact me and I will be happy to assist you.

Displaying blog entries 1-10 of 11

Contact Information

Photo of Bill Babylon Real Estate
Bill Babylon
Prudential Jack White/Vista Real Estate
3801 Centerpoint Drive #200
Anchorage AK 99503
Office: 907.351.4762