Annual Study Ranks RE/MAX as No. 1 Real Estate Franchise

RE/MAX is the United State's No. 1 real estate franchise - and the nation's No. 44 franchise overall - according to Entrepreneur magazine's 30th Annual Franchise 500 survey.

The survey appears on the magazine's Web site and in its January 2009 issue.

Subway bested McDonald's to capture the top position overall. Behind No. 2 McDonald's came Liberty Tax Service at No. 3.

Among real estate franchises, RE/MAX ranks No. 1 for the ninth time in the past nine years. The closest competitor - Keller Williams - came in at a distant No. 71.

RE/MAX ranks No. 10 overall in the Low-Cost Franchises category. It finished No. 1 last year.

Additionally, RE/MAX tops all real estate competitors at No. 38 on the Global Franchises list.

RE/MAX has a long, successful history in the survey. It ranked No. 10 overall a year ago, No. 11 in 2007, No. 8 in 2006, and No. 10 in 2005.

All companies in the rankings are judged by the same criteria, the most important being financial strength and stability, size and growth rate. Also considered: number of years in business, length of time franchising, start-up costs, litigation, percentage of terminations and financing options.

The factors are plugged into a Franchise 500 formula, with each eligible company receiving a cumulative score.

I received a phone call yesterday afternoon from someone who is concerned about the recent price reductions and wished that I would share actual sales because it can appear at times as though the Girdwood real estate market is falling like a rock.   I'd love to share sales, but Alaska is a non-disclosure state; this means that we have to get both a Buyer's and a Seller's permission to share sales data.  Although we get this permission for our transactions so that we can produce our 'Just Sold' postcards, we do not get this permission for transactions in which we are not involved.
 
So how's the market?  Let me give you a quick recap without a lot of statistics.  We typically see 70 - 80 transactions a year in Girdwood and this year we'll see 50 - 60 transactions, so volume is down.  The market really has to be looked at by segment (home, condo, land, etc), price point, and location to measure what is happening with prices.  Overall it appears as though prices are flat, but we are still seeing significant demand in some areas.  The upper end home market has really softened since last year.  Land sales have slowed unless it is a highly desirable lot.  Condos at the Resort base sell quickly, but only if they are priced well and thoroughly marketed.
 
The one common denominator is price.  The market has become very price sensitive.  Where you could just about put any price on any property and at least expect an offer a couple of years ago, today you've got to be priced right where it will sell in order to even get any interest.
 
So what about all these price reductions?   Obviously, price reductions are the result of the price being too high and this can occur for a number of reasons:  1)  The Licensee may have misinterpreted the market when generating the price. 2)  The Seller initially insisted on too high of a price.  3)  The market (segment, price point, and location) changed. 4)  The Seller's motivation changed.  5)  The marketing is ineffective and is not reaching real Buyers.
 
Don't hesitate to comment, e-mail, or call if you'd like to talk more about what is happening in our real estate market.

I got a call from a lender with whom we do a significant amount of intersest last night at about 8:30 PM.  She was calling about a client we have both been working with for several months.  As we talked I learned just he gravity of the situation.....15 year and 30 year convention rates LESS than 5%!  I was forwarded a link this morning from a colleague out of state to an article written by the normally pessimistic Jim Cramer of the television program "Mad Money".  Cramer says it best himself: click here for a link to the article.  If you need a referral to a good lender, give me a call at 783-2010 or drop me an e-mail at Bryan@BryanEpley.com .  Enjoy the sun!!!

Daily Real Estate News  |  December 12, 2008

30-Year Rates at Lowest in 4 Years

Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.47 percent during the week ended Dec. 11 from 5.53 percent last week and 6.11 percent a year ago.

Some lenders are locking in even lower rates as they build on momentum started when the Federal Reserve announced plans last month to purchase a substantial number of mortgage-backed securities. HSH Associates and Inside Mortgage Finance are reporting interest on 30-year fixed loans at 5.33 percent and 5.09 percent, respectively.

Freddie Mac chief economist Frank Nothaft says mortgage rates also were driven downward by the recession and rising unemployment.

Source: The Washington Post, Dina ElBoghdady (12/12/08)

Daily Real Estate News  |  December 9, 2008

Study Shows Housing Values Have Climbed

News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.

Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.

According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative.

While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.

According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:

• Honolulu: up 78.7 percent
• Virginia Beach: 72.6 percent
• Flagstaff, Ariz.: 66.5 percent
• Bellingham, Wash.: 65.6 percent
• Wilmington, N.C.: 62.1 percent
• Baltimore: 60.6 percent

Source: The Washington Post Writers Group, Kenneth R. Harney, (12/06/08)

Daily Real Estate News  |  December 4, 2008

Housing Prices Fall Below Replacement Costs

Housing consultancy Global Insight reports that nationwide, housing prices are now 3.8 percent undervalued, based on total market value. It says values fell at a faster pace in the third quarter after stabilizing earlier in the year.

According to Global Insight’s calculations, prices are now 6.5 percent below their 2007 peak. They fell at a 6.9 percent annual pace affecting 241 of the 330 metropolitan areas analyzed by Global Insight. That’s up from 150 metro areas affected in the second quarter.

Contraction is most severe in the Southeast and Southwest with only the Pacific Northwest remaining overvalued, Global Insight says.

Home prices fell more than 10 percent in the third quarter in nine central California communities. The Central Valley communities of Merced, Stockton, and Modesto have seen property values fall to less than half their 2005 value.

Twenty-nine metro areas in California, Florida, and Nevada ­– at one time among the most overvalued – have seen price declines in excess of 30 percent. Similar steep price drops are occurring in Michigan, northeast Ohio, the southern metro areas from Charlotte to Atlanta, as well as in New England.

"Weak economic conditions and wary consumers continue to hold the housing market back," says Jeannine Cataldi, senior economist and manager of Global Insight's Regional Real Estate Service. "Although many areas are seeing home sales increase, it is largely due to foreclosure homes being snapped up at significantly discounted prices. As the inventory of these homes is removed from the market, prices will remain on a downward path."

Source: Global Insight (12/03/08)

 

OPENING UNDER PERFECT CONDITIONS
Alyeska Resort first to crack 200”

For Immediate Release
December 1, 2008
Media Contact:
Jason Lott – (907) 754-2211 – jlott@alyeskaresort.com

GIRDWOOD, AK – December 1, 2008 – Over 117 inches of new snow in the past week has pushed Alyeska Resort’s snowfall total for the season over 200 inches! Conditions are more reminiscent of early spring than they are in December, with several feet of deep soft snow covering all elevations of the mountain.  More snowfall is forecasted for the next five days.  Alyeska opened on November 26th to epic conditions that rival the best opening day on record.  Conditions that will allow Alyeska to open North Face to the general public this Tuesday, December 2nd at 10:30am.   

“This is the best opening weekend I can remember”, stated Di Hiibner, Ski Area General Manager.  “We were able to open the entire mountain with the exception of our outer areas and the lower bowl with waist deep powder that made this a memorable week.”   

Click here to see the latest snow conditions.

Alyeska Resort, located 40 miles south of Anchorage, is Alaska's premier year-round resort.  Tucked amid the Chugach Mountains, Alyeska Ski Resort offers world-class skiing and snowboarding with stunning views of the Turnagain Arm.  The 1,400 acres of terrain with 2,500 feet of vertical rise, is serviced by nine lifts including a 60-passenger aerial tramway, and a high-speed lift.  Ski-in/ski-out access available from The Hotel Alyeska which features the luxurious Spa at Alyeska, fine dining at the Seven Glaciers and Sakura and a mountain-view indoor heated pool and whirlpool spa.  For information on ski packages and rates, call Alyeska Resort at 1-800-880-3880 or visit www.alyeskaresort.com.

Skiers and snowboarders are encouraged to call the SKI-SNOW hotline (907-754-7669) for the most accurate lift, weather, and trail conditions.  Detailed information about winter events including the 2009 U.S. Alpine National Championships March 23-31, Telepalooza 2009 World Telemark Freeskiing Comp April 1-5 and the 2009 World Freeskiing Championships April 6-12 are available at www.alyeskaresort.com.