A Look at the Alaska Real Estate Market Going Into Winter 2023
Contributed by Ken Hagler
As we find ourselves in November and 2023 coming to a close, it may seem tough to find things to be thankful for but as Alaskans, we're resilient and determined. Having good information can go a long way. As we prepare for our winter hibernation time, keep in mind, always, people are buying and selling homes and property in Alaska!
We Know Inventory is Low.
One prominent trend in the Alaskan real estate market (and across the USA) is the decline in available homes for sale. Over the past year, the number of homes on the market has decreased by 12.0%, resulting in only an average of 2 months' supply. This scarcity of options places buyers in a competitive situation, where they must act swiftly to secure their desired property. However, there is a silver lining as the recent months have seen a small but steady increase in the number of homes becoming available, providing hopeful prospects with more choices.
Fewer Homes are Being Sold.
In line with the decreased inventory, the number of homes sold in Alaska has witnessed a significant decline around 22%% year over year, as reported by industry research. This decline can be attributed to a combination of factors, including the limited supply of homes and rising prices. Buyers may find themselves facing challenges in finding a suitable property due to the reduced pool of available homes.
Location Matters All the More.
When considering a home purchase in Alaska, location plays a crucial role. Sellers need to keep this in mind too. Anchorage, as the largest city in the state, boasts a median home price of approximately $430,000. In contrast, the average home price in Fairbanks stands at $184,000. While Alaska ranks somewhere in the middle in terms of median home prices across the United States, these variations within the state offer a range of options to potential buyers. However, it is important to look beyond the price tag and consider other factors such as access to amenities, neighborhood culture, and overall cost of living. Each location in Alaska has its unique charm and characteristics that can greatly impact the quality of life for homeowners.
As winter approaches, Alaskans interested in the real estate market find themselves in a low-inventory environment with interest rates hanging around 8%. By staying informed and considering crucial factors such as inventory, home sales, and location, potential buyers and sellers in Alaska can chart a course towards making informed decisions about real estate as we head into 2024. Stay informed and reach out to me and our team at Better Homes and Gardens Real Estate Dream Makers...Making Dreams Realities!