Navigating Opportunities in 2024

2024 is set to be a much better real estate year in comparison to our recent past. The market has been complexly changing since pre-covid, and we are starting to see it recover. We are very optimistic that our current trend of rate reductions, slowing inflation, and increasing inventory will assist our local market in a positive way.


Alaska measures our economy by many factors, but one of the many important indicators is the tourism industry, which brings much-needed revenue to the state and local economies. 2023 saw cruise ship passengers pass the 1.5 million mark, which is higher than pre-COVID numbers and a stark difference from 2021 and 2022. These passengers spend money all over Alaska and support many primary and secondary industries. In addition to our tourism numbers, our unemployment rate is down to 4.5%, and wages are up 6.5% over the previous year. (For more information, read the latest report on Alaska Trends here and the most recent AEDC report here.)


Specifically in real estate, one of the major issues we have faced is low inventory across all asset classes. Low inventory led to higher prices, even in the face of higher interest rates. Thankfully, we have started to see the number of homes on the market increase. In January 2023, we saw 212 residential listings on the market, while last month we saw that increase to 256. These numbers show that there is a growing amount of inventory hitting the market, which is great news for buyers. There is still quite a deferred demand, though, so that new inventory is getting absorbed quite quickly, especially for homes that are priced well, have a great location, and have been updated.


Although the Federal Reserve chose not to make another rate cut this coming March, their plan to still reduce rates over 2024 is still in effect. Currently, we are still a couple points lower than we were this time last year, and that has successfully sparked interest back in the market. It also made properties more affordable, and people's money went further.


What does all of this mean? More real estate transactions are expected this year than last, and as rates drop and the market recovers, we should see increased activity across all asset classes. 


Whether you are looking to buy, sell, or conduct an exchange, there are always great opportunities to be found. With a specialty in luxury real estate and investment sales, we’d love to serve you. If there is anything that my team or I can do for you, please don't hesitate to reach out!


Posted by Matthew Lindsay on
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