Kenai Real Estate has had an active year with a 30% jump in the number of closed home sales. That means there are fifty three happy new homeowners in Kenai. The good news continues as 2013 is set to close with a bang. Kenai homes under contract are near historic highs with 57 pending deals. That is a 14% increase over this time last year and greater than the total number of Kenai properties sold to date.
Kenai # Sold # Pending Average Sales Price % of Sales to List Price
2013 53 57 $209,592 96%
2012 40 50 $203,379 98%
*data for a time period from January 1st to August 13th for 2012 and 2013.
Not all news is good news for Kenai home sales. The big story is the drop in the average sales price from $209,592 to $203,379, a three percent drop from last year. The list to sales price also dropped from 98% to 96%, a two percent drop. The buyers have been active but have been unforgiving to homes priced outside of the market, or just plan overpriced.
What is different about our market today?
There has been a surge in demand for houses nationally and locally given the upswing in the general economy. What has changed from the good old days is the memory of the real estate bubble collapse. Buyers are working hard to make prudent real estate investments. Buyers are also clinging to an expectation of low recession prices. This means that properties that are overpriced or have functionally obsolescent features are struggling to compete.
What does functionally obsolescent features mean? It is the catch phrase your appraiser uses to justify a devaluation of your property compared to it’s peers. A good example would be when your home does not having a master bathroom and walk in closet, but all of the comparable sales within your neighborhood do. The appraiser will discount your home’s value for the lack of a desirable, useful and valuable feature.
The take away is to be sure that your home is priced similarly to the homes that have already sold in your area. It is the measure that everyone is looking at to judge value, particularly your potential buyer and their agent.