Only 46 homes sold in January which represents a 34% decrease since December. In fact sales of homes in Fairbanks have hit a 24 month low. The average marketing time rose to almost 170 days, a 65% increase over December and 162% over September '07.

Aside from general buyer anxiety about the movement of the Fairbanks real estate market, sellers are instrumental in slowing the Fairbanks housing market. While the total number of homes sold has decreased, the days on the market and absorption rate has skyrocketed. Despite a seemingly steady or slightly increasing average sales price, buyers are paying less than 90% of the average list price. Current list price to sale price ratios for January are at 89.5%. This is the lowest list/sales ratio I've seen since I began recording detailed market stats almost eight years ago.

What does this mean? Fairbanks home sellers need to understand the dynamics of the current real estate market. Buyers are still buying and homes in good condition that are priced within the market, meaning they are very competitively priced as compared to the very recent sold comparables, are still selling. Unlike the past couple of years, there is no margin if you're serious about selling. Have questions about the market or what your home might be worth? Contact us today for a free absolutely no-obligation analysis of your home.

Fairbanks home buyers: With 30 year fixed rates hovering at 5.625% and an abundance of homes for sale, there are good values to be had. This is an incredible move-up market. I just sold a gorgeous new home in Sherwood Forest for $388,000 that appraised last year for $460,000 and two years ago would have sold for just under $500,000, if not a little over. New construction also represents an area where the smart buyer could find a good value. Have questions about the market? Ready to find your great Fairbanks real estate value? Search the Fairbanks MLS and then call or email us with any questions.

The average price for a 3 bedroom 2 bath home in Fairbanks is $223,000. Assuming a 3% down payment, an interest rate of 5.625%, annual property taxes of $2,800 and hazard insurance of $900, your total mortgage payment (PITI) would be approximately $1,560. That is equal to or less than what many newer 3 bedroom 2 bath single family homes are renting for. If you're thinking of buying, this could be an incredible time for you to enjoy the benefits of homeownership.

January Market Performance - 1999 - 2008

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.