Fairbanks Ak Real Estate News & Info

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Fairbanks Alaska Real Estate Update - December 20, 2007

Despite being at the heart of the holiday season, the market continues to march forward. The total number of homes sold rose a bit this week, and along with it, the total sales volume. Two $400K+ homes on the Ridge closed this week, although to get to closing they each took a 20% hit on their initial asking price. Combined marketing time was just shy of two and a half years. My guess is if they had been quicker to respond, they could have mitigated their loss somewhat.

Although we saw a slight reduction in the inventory of available homes this week, we saw a significant jump in the absorption rate. This week we're sitting at 6.8 months; that's a sharp increase from 6 weeks ago when we were looking at 4.8 months. A general rule of thumb is that a 6 month absorption rate is considered a healthy, balanced market. Compared to last year when we struggled to get above 2.5 months, sellers are having trouble seeing this market as balanced.

The other headline item this week is the continuing financial liquidity issue. The Federal Reserve is pumping cash into the system $20 billion at a time to encourage bank to bank lending. So far it isn't having much of an effect. Investor confidence, or the lack thereof, in mortgage backed securities and the volatility of the bond market is combining to drive interest rates slightly higher. While still very attractive, rates are up this week. The 30 year fixed is back to 6.125, while FHA/VA rates are back to 6.000 as of this morning.

Kathy and I want to wish everyone a very Merry Christmas. God Bless!

Number of Homes Sold
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Average Sales Price
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Days On Market
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Absorption Rate
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Notice of Default Filings
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Active Listings
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Fairbanks Alaska Real Estate Agents Jesse & Kathy Clifton

Jesse & Kathy Clifton, Spouses Selling Houses - Fairbanks, Alaska Realtors

Jesse & Kathy Clifton, better known as 'The Spouses' are full time Realtors serving Fairbanks Alaska buyers and sellers. They specialize in residential real estate; new and existing construction as well as undeveloped land in Fairbanks, North Pole, Ft. Wainwright, Eielson Air Force Base and Interior Alaska. Visit their website to review the fee market reports designed to keep you updated on the local Fairbanks Alaska real estate market. Have specific questions? Feel free to contact them anytime. They would love to hear from you.

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4 comments • Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-699-6024 • December 24 2007 02:39PM

Breaking the bank

The Federal Reserve announced today it auctioned off yet another $20 billion to commercial banks at 4.67%, which is slightly lower than the current discount rate of 4.75%. This follows their $20 billion auction on Monday.

According to the release, the FED received almost $58 billion in bids for the $20 billion being offered. To date more than 166 commercial banks have vied for the reduced rate funds.

The second of four auctions scheduled has drawn so much interest the Fed has announced they will continue pumping money into the system bi-weekly "for as long as necessary to address elevated pressure in short term funding markets." Additional short term loan funds will auctioned of January 14th & 28th.

Translation: Banks are hurting. Mortgage loses have cost already cost banks billions of dollars in operating capital. Most lending between financial institutions occurs through bank to bank lending. Commercial banks generally don't go to the Fed for fear investors will smell blood in the water. With the Fed expected to make more than $90 million available in emergency loans; there IS blood in the water.

To put the credit crunch in perspective, the Savings and Loan crisis of the 80's only cost $150 billion. Current estimates put the total financial loss due to the mortgage meltdown at just over $1 trillion. If the low rates don't have the intended effect and the economy slides into a recession, $1 trillion will be but a drop in the bucket.

Talk about being asleep at the switch.

2 comments • Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-699-6024 • December 21 2007 03:01PM

Defining Cold

Well, we've had it pretty easy so far. It took most of the year before we even saw the mercury dip below zero, but old man winter has arrived with a vengance. The past few days have seen temperatures nearing the -50 mark. I love Alaska and thankfully the summers make up for the few bouts of extreme cold we have ever year, but I never like to see the cold set in.

I took these pictures in our driveway this afternoon around 1:30. You can see the ice fog hanging in the air in the second photo. It sounds like we're heading for warmer temperatures in the next couple of days... tomorrow it's only supposed to be -26! Time to break out my board shorts and the margarita mix... not.

21 comments • Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-699-6024 • December 21 2007 03:48AM

The Incandescent Light Bulb... a thing of the past.

In addition to provisions providing billions for the development of safe, clean biofuels, and a 40% increase in the CAFE standards, the energy bill signed by President Bush makes the incandescent light bulb obsolete.

According to Bryan Dundan of Phillips Lighting, incandescent light bulbs currently consume 42% of the electricity generated in the United States, but provide a mere 12% of the country's artificial light. The bulk of the electricity used to generate light in incandescent light bulbs is actually lost as heat.

After 120 years of near unchanged design, the phase out of the incandescent light is set to begin in 2012 with the 100 watt bulb and end in 2014 with the 40-watt bulb. All light bulbs must be 25%-30% more efficient by 2014 and 70% more efficient than 2010.

Wonder how 'ol Edison would feel about that?

5 comments • Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-699-6024 • December 21 2007 02:33AM

Hardball w/ Matthews & Deutsch

This afternoon I was watching Hardball with Matthews. I only caught it for a few minutes but Matthews and Donny Deutsch were reviewing the Presidential candidates Christmas messages. The one I found most insulting was Edwards condescending "I'll look out for the little guy" message. Who would waste their vote on this incompetent shyster?

What really struck me was Donny Deutsch comments about Huckabee's Christmas message. I realize not everyone in this country is a Christian. Those that aren't are free to worship anything they desire; heck you can pray to a picture frame if it makes you feel better. I really don't care. What I do take issue with is left wing, secular twits foaming at the mouth because someone actually had the audacity to mention Jesus Christ on national television.

Deutsch actually made the comment "I"m getting frightened over here..." after the video initially played. He went on to say the video was "one of the more frightening things I've seen in a long time..." They were, of course, referring to the cross that appears behind Huckabee as he's delivering his Christmas message.

Perhaps Deutsch and Matthews should be frightened. The word of God is clear;

...whosoever shall deny me before men, him will I also deny before my Father... I am the way, the truth, and the life: no man cometh unto the Father, but by me...

This is by no means meant as an endorsement of Huckabee. With that said, that an individual would call that message "one of the most disturbing things I've ever seen in a long time" is just amazing. Frankly, I'm glad to hear a candidate mention Christmas, let alone that we should reflect on the birth of Christ. I want my candidate for President of the United States to acknowledge Christ... I want my congressmen, senators, and judges to all acknowledge Jesus Christ.

I'm sure this will probably offend some people... and if so, well, I'll make no apologies for that. I am a unabashed, unashamed Christian. Not to the exclusion or expulsion of any non-believers, but it's time we, as a nation, move our faith back to center stage. Let Hillary or Obama have the atheist or agnostic vote. Evangelicals still have a powerful lobby.

6 comments • Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-699-6024 • December 20 2007 04:59AM