Real Estate Blog

Happy Holidays ❄

Currently, there is a lot of mystery about what's going on in the market. People see crazy headlines and are getting concerned and rightfully so. However, we expected this as we all saw the signs as the rates started to climb as the feds tried to slow the rate of inflation. 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.

Employment in Anchorage has been steadily growing, in the most recent Employment Study, Anchorage is up 1,400 jobs. Post COVID, the health sector has significantly grown as it saw the highest number of jobs since early 2020. Jobs within the food Services sector have also grown substantially and this last August we saw the highest number of jobs ever in this sector.. Lastly, the big winner is construction with as many as 9,000 jobs being posted. These stats were pulled from the latest AEDC jobs report.

Interest rates continue to adjust with the market but are currently staying between 6% to 7.5%, depending on the borrower. We have seen some slight increases recently from rates 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 that are on the fence finally hit the market.

Alaska has always had a highly seasonal real estate market. Historically we see a steep increase in supply and demand come Spring time and throughout 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!