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Despite being at the heart of the holiday season, the market continues to march forward. The total number of homes sold rose a bit this week, and along with it, the total sales volume. Two $400K+ homes on the Ridge closed this week, although to get to closing they each took a 20% hit on their initial asking price. Combined marketing time was just shy of two and a half years. My guess is if they had been quicker to respond, they could have mitigated their loss somewhat.
Although we saw a slight reduction in the inventory of available homes this week, we saw a significant jump in the absorption rate. This week we're sitting at 6.8 months; that's a sharp increase from 6 weeks ago when we were looking at 4.8 months. A general rule of thumb is that a 6 month absorption rate is considered a healthy, balanced market. Compared to last year when we struggled to get above 2.5 months, sellers are having trouble seeing this market as balanced. The other headline item this week is the continuing financial liquidity issue. The Federal Reserve is pumping cash into the system $20 billion at a time to encourage bank to bank lending. So far it isn't having much of an effect. Investor confidence, or the lack thereof, in mortgage backed securities and the volatility of the bond market is combining to drive interest rates slightly higher. While still very attractive, rates are up this week. The 30 year fixed is back to 6.125, while FHA/VA rates are back to 6.000 as of this morning. Kathy and I want to wish everyone a very Merry Christmas. God Bless!
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Number of Homes Sold Click to Enlarge 
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Average Sales Price Click to Enlarge 
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Days On Market Click to Enlarge 
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Absorption Rate Click to Enlarge 
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Notice of Default Filings Click to Enlarge 
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Active Listings Click to Enlarge 
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Jesse & Kathy Clifton, better known as 'The Spouses' are full time Realtors serving Fairbanks Alaska buyers and sellers. They specialize in residential real estate; new and existing construction as well as undeveloped land in Fairbanks, North Pole, Ft. Wainwright, Eielson Air Force Base and Interior Alaska. Visit their website to review the fee market reports designed to keep you updated on the local Fairbanks Alaska real estate market. Have specific questions? Feel free to contact them anytime. They would love to hear from you.
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