Eagle River Real Estate Update: $176,000 Avg. Increase for Multi-Fam??

**The following is a transcript from the 12-15-21 Eagle River market update on the Alaska Realtor YouTube channel. Feel free to watch there**

My name is Jamin Goecker and I'm a realtor in south central alaska and my mission is to help you build an intentional and significant legacy for yourself and your family by coaching when in real estate, and the purpose of today's report is to give you the market update for what's going on in eagle river Alaska.

??????????????Residential

??????????????Active Inventory

The first thing we need to look at is what's going on in the residential market and in the residential market we're seeing that the inventory is seeing a pretty sizable cut from where it was before this time last year in November, the month that we have the most recent full information. There were 81 homes that are on the market this year what we're seeing is there are 54 homes that are on the market.

Sold Units

We are seeing a slashing of inventory right off the bat the second thing that we're seeing is, even with that huge cutback in the inventory, we are still seeing that the number of properties that have actually sold in Eagle River has maintained about the same because there were 52 homes that sold last November and what we are seeing is this year they're 54. We are maintaining just about the same or even going up just a little bit.

??????????????Average Sold Price

The average sold price increased year-to-date over last year. It was $391,000 last year and now it is $424,000 approximately year-to-date, so this is not simply a fluke of one month. The overall average sold price increased 8.3%. We will talk more about why that is in the summary.

??????????????Condo

??????????????Active Inventory

This is not a particularly big piece of the market in Eagle River but it is still a developing and a growing sector of the real estate market here in Eagle River so we're going to check it out anyway. This time last year, there were 17 condos that were on the market. This year, there are 7. We are starting to see a decrease in the inventory for condos in Eagle River.

??????????????Sold Units

The next thing we need to look at is the number of condos that have actually sold in the market during this time. What we see for that is that we had 5 condos that sold this time last year and now it's 9 so proportionally that's huge.

Average Sold Price

Last but not least, let’s see the average sold price year-to-date. Again, it's not simply one month where the prices went crazy. The average sold price this time last year was $245 000 and this year it's about $266,000 which, just like on the residential side, is an increase of 8.39% in the average sold price in Eagle River.

??????????????Multi-Family

??????????????Active Inventory

The multi-family properties in Eagle River are kind of its own animal. The reason I say that is they are in high demand because Eagle River has a low cap rate, meaning that once you buy property here you're really not going to have a whole lot of drama attached to it and you avoid a lot of issues popping up with tenants or other extraneous circumstances you can't really account for when you're trying to pencil it out and see if it makes sense. So Eagle River has way less money to be made as far as a risk-benefit analysis but what it does have is it has a lot of stability.

In other words, I can invest money here and be confident my property is not going to get destroyed and lose my shirt over it. I'm not necessarily going to get rich overnight, but I'm also not going lose my shirt because it's very stable. That's what a low cap rate means. Eagle River is very desirable as far as investors go for that reason.

This time last year there were eight properties that were on the market now there are 3 so that really does tell you a lot about what investors are thinking right now about their multi-family properties in Eagle River.

Sold Units

?The number of properties that have sold in this market for multi-family during November and this is patchy just because the multi-family scene in Eagle River is not going to be particularly hopping all the time. There is not a whole lot of investment properties out there as we see with the previous chart and what we see is that the number of units that sold for the past month.

Average Sold Price

The average sold price for multi-family properties here in Eagle River has had a pretty drastic increase to say the least because the average sold price year-to-date, this time last year, was $389,000; now it’s $565,000, which is over a 45% increase. That is huge increase but before everyone either gets really doomsday or gets too excited, let's keep in mind it is a smaller market and when you have a big property, which there was one that sold for nearly $1.5 million last month, that's going to throw things off and give you that drastic increase that throws the rest of the year off. We are still seeing a great appreciation, so I don't want to take that away, but also it's getting thrown off by that big property selling.

?

Summary

Residential

On the residential side, the inventory remains pretty low and that's probably going to remain the case for the foreseeable future until interest rates start going up, which is going to start taking away some of the demand, which then is likely to start making the sellers who are on the fence and not sure if they want to get their home on the market because they think “Well, I'd love to sell but also I don't want to be trying to buy in this market because it's too competitive.”

As soon as they see the demand is starting to go down and it's easier to buy a place they're probably going to start putting their home on the market.

Condo

As for condos, I theorize that it's going to be the same story as the residential market, just on a lower scale

Multi-Family

The multi-family sector remains a great place to invest so if that’s something you're considering, make sure the pencils out and it makes sense; just because it's a multi-family in Eagle River does not necessarily mean it's a good deal or something that you should invest in.

I hope this was useful. If you have any questions, feel free to reach out to me either on my website, set an appointment with me on Facebook, or slide into my DMs on Instagram.