First of all, my apologies for posting this information in February and not January; we have been very busy successfully negotiating the sale of two pieces of Vacant Land and one Condo.  We just this weekend successfully negotiated the sale of another Condo that should close in the middle of March and I expect to be soon negotiating the purchase and sale of two different pieces of Vacant Land.

The Girdwood real estate market was characterized in 2008 by a drop in overall market activity.  Looking back in time, this historically happens every 3 - 4 years and last happened in 2005.  The market saw a 41% drop in reported sales from 2007 to 2008 from 81 reported sales to 48 reported sales.  The segment most affected was the Residential home segment, particularly at price points over $600,000.  I am thrilled to report that RE/MAX of Alyeska only saw a small drop in volume when compared to the market as a whole.  Our thanks go out to the many Buyers and Sellers we were able to help meet their objectives in 2008.  We are off to a solid start in 2009!

Residential:  There were 17 homes sold in 2008, versus 34 homes sold in 2007.  Days On the Market increased from 157 days to 180 days, but Sellers could expect to receive  98% of their asking price in 2008, versus 96% in 2007.  The increase in the Days On the Market reflects a transitioning market, whereas Sellers receiving a higher percentage of their asking price reflects that Sellers, who can be slow to adjust to a transitioning market, are making the adjustment.

Condominium:  There were 25 condos sold in 2008, versus 38 condos sold in 2007.  Days On the Market decreased from 135 days to 123 days, but Sellers could expect to receive 96% of their asking price in 2008, versus 97% in 2007.  Statistically speaking, not much of a change between 2007 and 2008.

Vacant Land:  There were 5 pieces of Vacant Land sold in 2008, versus 8 pieces of Vacant Land sold in 2007.  Days On the Market increased from 170 days to 242 days, but Sellers could expect to receive 98% of their asking price in 2008, versus 94% in 2007.  Looking at what sold and how many new construction homes were started in 2008, it is clear that the Vacant Land market has softened considerably.  Fortunately, Sellers are getting in line with the market by being realistic in most cases with their asking prices.  In fact there have already been two Vacant Land sales and one pending Vacant Land sale during the first six weeks of 2009.  We are also seeing an increase in the number of owner financed Vacant Land sales.  All is not lost however for those wishing to sell their Vacant Land as desirable lots are still selling; in fact, 2008 saw two Vacant Land sales in the $180,000's.

Markets are dynamic by nature.  A Seller's market does not remain a Seller's market, nor does a Buyer's market remain a Buyer's market.  Markets transition from one to the other and this transition can either happen quickly, or it can happen slowly.  Furthermore, one has to really analyze the market segment (Residential, Condominium, and Vacant Land) as well as the price point to get a true sense of what is really happening.

Regardless of segment or price point, it is clear that we are somewhere in a transition.  I believe this to be a slow transition and a transition that has been underway for several months at a relatively slow speed.  What is for sure is that the market has become very sensitive to price, condition, and location.  The other trend we are noticing is that the Buyers who are in the market are serious, ready to buy, and expect to be able to negotiate; Sellers should not misread this as a sign to over price their property expecting to come down because the market is sensitive enough that their property will be passed over.

Whether you are a Buyer or a Seller, it is a good time in our market.  Buyers have choices and interest rates on their side, while Sellers own property in a stable market.  I hesitate to make predictions, but I believe that the trends we have seen over the last several months will continue for several more months.  Critical factors affecting our market will be the price of oil and it's effect on our state economy, in-state tourism, out-of-state tourism to some effect, and the implementation of the Resort's Area Master Plan.