Kenai Real Estate Archives - Page 4 of 9

2013 Kenai Real Estate Market Statistics: November Report

November 21, 2013 By Glenda Feeken Leave a Comment

The real estate market in Kenai continues to be strong with a six percent increase in sales year to date. Surprisingly the sales growth is down from mid year tally of a 28% increase. Kenai was rocking in the first half of 2013. The future looks bright with a ten percent growth in the number of pending sales from last November.

This market report and real estate statistics are for the city of Kenai and its MLS area for the time period of January 1st to November 21st 2012 to 2013. This information is considered accurate but is not guaranteed and is subject to change.

Active Listings Inventory Growth: 15%

2012 238 Listings
2013 273 Listings

The Kenai housing inventory increased by 15% this year. The driving force is the continued housing recovery and major shifts in the local oil and gas industry.

New Listings Growth: 25%

2012 212 New Listings
2013 265 New Listings

The number of new Kenai homes for sale increased by 25% in 2013. A large portion of the new listings were related to the bulk of employee transfers into and out of the area by Marathon and Hillcorp after the sale of the Cook Inlet Oil and Gas rights.

Pending Listings Growth: 10%

2012 98 pending listings
2013 108 pending listings

Pending Sales in Kenai follow the trend in inventory and new listing growth.

Number of Homes Sold Growth: 6%

2012 100 sold homes
2013 106 sold homes

Although the inventory increased by 25%, the number of homes sold has only increase by six percent in Kenai.

Average Sales Price Growth: 13%

2012 $160,583
2013 $181,535

The average sales price for Kenai has increased by thirteen percent.A healthy increase driven by record low interest rates and a strong local economy.

Percent of List Price Growth: -2%

2012 97% of list price
2013 95% of list price

The percent of a home’s sales price to it’s list price dropped by two percent this year from 97% in 2012 to 95% in 2013. Given the large increase in the average sales price, this drop is likely caused by aggressive speculation of sellers in setting their list price and the ability of the buyers to demand a more realistic value.

Average Days On Market

2012 days on market 171
2012 days on market 105

A healthy market turns over it’s housing inventory quickly and the average time it took to sell a home dropped by 66 days in 2013.

2013 is a good year to sell your home and not a bad year to buy either. Interest rate are still historically low and the inventory of homes to choose from has grown. I will add not to wait around. Homes are selling faster than in the past if they are priced appropriately. The second half of 2013 may be a different story as interest rates climb and the inventory continues to shrink.

If you would like to learn more about buying or selling your home contact Glenda Feeken at RE/MAX today. 907 252 2743.

Who’s Paying Your Mortgage?

November 14, 2013 By Glenda Feeken Leave a Comment

As a Kenai homeowner, you obviously pay for your mortgage but as an investor, your tenant does. Equity build-up is a significant benefit of mortgaged Kenai rental property. As the investor collects rent and pays expenses, the principal amount of the loan is reduced which increases the equity in the property. Over time, the tenant pays for the property to the benefit of the investor.

Equity build-up occurs with normal amortization as the loan is paid down. It can be accelerated by making additional contributions to the principal each month along with the normal payment. Some investors consider this a good use of the cash flows because interest rates on savings accounts and certificates of deposits are much lower than their mortgage rate.

In the example below, is a hypothetical rental with a purchase price of $125,000 with 80% loan-to-value mortgage at 4.5% for 30 years compared to a 3.5% for 15 years. The acquisition costs were estimated at $3,000, the monthly rent is estimated at $1,250 and $4,800 for operating expenses.

Notice that both properties have a positive cash flow before tax. The cash on cash return is the revenue less expenses including debt service divided by the initial investment to acquire the property. The 15 year mortgage will obviously have a smaller cash flow and lower cash on cash but the equity build-up is significantly higher.

If the goal of the investor is to pay off the property to provide the highest possible cash flow at a later date, a shorter term mortgage with a lower interest rate will help them achieve that. A simple definition of an investment is to put away today so you’ll have more tomorrow. Sacrificing cash flow now, during an investor’s earning years, is a reasonable expectation to provide more cash flow in the future when it might be needed more.

Contact me if you’d like to explore rental property opportunities.

The Truth About Appraisals: Knowing the Guidelines Solves the Mystery

November 13, 2013 By Aaron Swanson Leave a Comment

The appraisal process often baffles consumers. They may feel that their Kenai Peninsula home is worth a higher dollar amount, and so the appraised value doesn’t always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and real estate agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules.

In essence, these important guidelines help appraisers put a fair market value on Kenai and Soldotna area homes based on comparable sales in the same area, and the home must be bracketed in size and value.

For example, there is no set dollar figure associated with a great view, shop, hot tub, bathroom upgrades, etc. If a homeowner installs a custom bathroom that cost them $20,000, but the local marketplace supports the value of a bathroom at $5,000, then that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at a higher percentage of their value in newer Kenai homes because the only way to obtain those upgrades was to put more money into the cost of building the home. On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren’t uncovered until the project has already begun, such as plumbing or wiring that may need updating.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of home sales that have actually closed within close proximity to the subject property. In the Kenai Peninsula real estate market it can be challenging at times to find a comparable property within a mile, the norm for most markets.

As a loan professional, I make a point to follow the appropriate guidelines at all times, including the guidelines in the Home Valuation Code of Conduct, which among other things prohibits a lender from having any contact with or influence on how the appraiser values a home. Staying up-to-date on the rules of my industry helps to create easier and much smoother closings for my borrowers.

Aaron Swanson

Mortgage Planning Specialist # AK 194627

Residential Mortgage # AK 167729

Phone: 907-260-9701

Fax: 907-260-9727

swansona@residentialmtg.com

http://www.aaronswanson.co

37070 Cannery Road Kenai, AK 99611: Kenai Home For Sale

November 7, 2013 By Glenda Feeken Leave a Comment

Overlooking the Cook Inlet off Cannery Road this Kenai Home is stunning. Just a short drive from the Kenai city limits and ten minutes from town you will enjoy the spectacular scenery of the Kenai Peninsula but are close to all the comforts you expect. Life will be good as you walk on the beach or simply watch the sunset behind Mt. Redoubt.

This easy living home for sale in Kenai consists of a large living room with an adjoining kitchen. The original owner had the home built to be handicap friendly. The Kitchen has a spacious island and large dining area. The kitchen counter tops are solid surface. The home has three bedrooms and two baths. The master suite is large with a sauna, large walk in shower, larger walking in closet and abundant square footage for you personal space. The other two bedrooms are located along the back of the home sheltered from the road. They share a hall bath and are well sized with large closets. Storage is ample in the kitchen with a wall of cabinets, pantry and large two car garage .

The Public Schools are Kenai Elementary, Kenai Middle and Kenai High School. The closest grocers are Kenai Safeway, Three Bears, country Foods and Walmart.

[optima_express_toppicks id=139455 includeMap=true]

48231 Island Lake Road North Kenai, AK 99635: North Kenai Home For Sale

October 30, 2013 By Glenda Feeken Leave a Comment

North Kenai home for sale off Island Lake Road. Enjoy one acre of Nikiski real estate with paved roads all the way home. This tri-level home has 3 bedrooms and 2 baths. The home has been tastefully updated and shows pride of ownership. Washer, dryer and refrigerator to remain.

Priced to sell! Check out this great starter home before it sells. The public schools are Nikiski North Star Elementary and Nikiski Middle and Senior High School.

[optima_express_toppicks id=138095 includeMap=true]

614 Cedar Drive Kenai, AK 99611: Kenai Real Estate & Home For Sale

October 3, 2013 By Glenda Feeken Leave a Comment

Fixer upper Kenai home for sale. Great for investor or homeowner with elbow grease. This well priced Kenai real estate is full of opportunities for those with the skills and time. Take advantage of the low price and build a better future for yourself.

This type of Kenai home is common to the Woodland Subdivision and is a standard split entry with an attached garage. The home has two bedrooms upstairs and two bedrooms downstairs. Each level has a bathroom. The upper has a tub and the lower has a shower stall.

The local Kenai area is well-appointed with easy access to the local bike trails, city parks, school yards and beach access about a mile away. The public schools are Mountain View Elementary, Kenai Middle and Kenai Central High School. The Kaleidoscope Charter school of arts and science is adjacent to the property across Forest Drive.

[optima_express_toppicks id=133732 includeMap=true]