Real Estate Blog

August 2023 Market Update

We are coming towards the end of summer here in Alaska, and before you know it, fall and winter will be setting in. The state fair is starting soon, school is about to start back up, and moose season will be starting before you know it. As we all work to get our last moments of summer in, the same can be said about home buyers trying to find the perfect property and close before the snow flies.

Across Alaska and the nation, we are still seeing the same low supply we have been experiencing all year. Nationally, our housing inventory is down about 20% from 2022, and in Alaska, that number is closer to 35%. That low inventory mixed with the same demand has steadily increased prices and kept a competitive market even with our current interest rates.

Interest rates continue to adjust with the market but are currently staying between 6% and 7.5%, depending on the borrower. We have seen some slight increases recently compared to earlier this year. However, we are also getting positive reports of inflation starting to slowly decline. If that holds, the Fed may hold off on future rate hikes, which will contribute to a slow decline in mortgage rates. That would only increase demand for buyers, and I believe that we will see sellers who are on the fence finally hit the market.

Alaska has always had a highly seasonal real estate market, and historically, we have seen a steep increase in supply and demand in the spring and throughout the summer. However, that's changing with our low inventory, and sellers are getting great prices year-round now. There is always a way to put a deal together in any market; it is just a matter of understanding what's important, how to structure it, and having a professional who can navigate the ins and outs..

Whether you are looking to buy, sell, or conduct an exchange, there are still some 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!