North Pole Real Estate Market Report

Let’s take a look at the real estate market in North Pole. Currently there are 64 sales pending in the market overall, leaving 110 listings still for sale. The resulting pending ratio is 35.5% (60 divided by 170). So you might be asking yourself, that’s great… but what exactly does it mean? I’m glad you asked! The pending ratio indicates the supply & demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract.

Alternatively, a low ratio means there are not enough qualified buyers for the existing supply.Taking a closer look, we notice that the $225K – $250K price range has a relatively large number of contracts pending sale.

We also notice that the $175K – $200K price range has a relatively large inventory of properties for sale at 15 listings. The average list price (or asking price) for all properties in this market is $233,576.
A total of 153 contracts have closed in the last 6 months with an average sold price of $244,463. Breaking it down, we notice that the $225K – $250K price range contains the highest number of sold listings.

Alternatively, a total of 141 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $250K – $275K price range has the highest number of off-market listings at 23 properties.

Active listings have been on the market for an average of 122 days.

Analysis of sold properties for the last six months reveals an average sold price of $244,463 and 54 days on market. Notice that properties in the $375K – $400K price range have sold quickest over the last six months.
The recent history of sales can be seen in the two charts below. The average sold price for the last 30 days was $236,840 with an average DOM of 67 days.

Since the recent DOM is greater than the average DOM for the last 6 months, it is a negative indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.
“The average list-to-sales ratio for this area is 98.7%.”

Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property.

Analysis of the absorption rate indicates an inventory of 4.3 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. It is significant to mention that this estimate does not take into consideration any additional properties that will come onto the market in the future.

1. PROPERTIES FOR SALE
a. Number Active: The number of listings for sale which are currently being marketed but do not yet have a purchase agreement.
b. Average Days on Market (DOM): The average marketing period of currently active listings. This does not account for some listings which have had a previous listing period, but were re-entered as a new listing.
c. Average List Price: The average price that a seller is currently asking.

2. CONTRACTS PENDING
a. Number Pending: The number of current listings for which a contract has been signed but has not yet closed.
b. Pending Ratio: Sometimes called a “list-to-pending ratio”. This is a measure of how fast properties are going under
contract vs. how fast they are being listed.
Pending Ratio = P (Number of Pending Listings) A+P (Number of Active + Pending)
(P) represents properties that buyers have chosen
(A+P) represents the entire pool from which they have chosen

3. OFF-MARKET
a. Number Off-Market: The number of listing agreements that have failed to close in the last 6 months. Some owners may choose to reoffer their property for sale.

4. PROPERTIES SOLD
a. Number Sold: The number of properties that have gone to a closing in the last 6 months.
b. Average Days on Market (DOM): The average marketing time it has taken properties to sell in the last 6 months.
c. Average Original List Price: The average price at which a sold property was originally marketed.
d. Average List Price: The average price at which a sold property was marketed just prior to selling.
e. Average Sold Price: The average price for which a property sold.
f. List to Sales Ratio: The percentage of the list price that the buyer ultimately paid for the property. List to Sales Ratio = Average Sold Price
Average List Price

5. OTHER
a. Absorption Rate / Months of Inventory: An estimate of how fast listings are currently selling measured in months. For example, if 100 properties sell per month and there are 800 properties for sale – there is an 8 month supply of inventory before counting the additional properties that will come on the market.

WHAT SHOULD I DO NOW?

Call or Email Cristina Alexander for an Investment property analysis and consultation.
NEXTHOME Arctic Sun, Fairbanks, Alaska 907 987-6897
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