Spring 2023 Real Estate Market Update

Happy Spring & Happy April,

I am excited to bring you a spring Market update for South Central Alaska real estate. The weather is finally warming up and we are seeing a bit more action with PCS Season upon us and the near 50’s weather starting to creep our way. The sun has finally made a dominant presence and the Municipality of Anchorage and Matsu-Borough are blessed now with just over 15 hours of sunlight. We made it through one of the longest winters in quite some time! 

The last several weeks I have been getting a lot of questions when it comes to the real estate market. What is currently happening, and what are we expecting to see through the next two quarters? What I would like to start with is some information for current homeowners. If you have owned your home for at least two years it is likely have a significant amount of equity in the property. If you are going to be PCSing or moving out of state in the next 12-18 months and plan to list it, please reach out sooner rather than later so that we can set a plan in place and get some of your marketing photos taken THIS SUMMER- this will enable us to maximize your return if you sell in the winter months. If you are not moving out of state or planning to sell I’d like to ask you this question- What is your longterm plan for your home and how long do you plan to stay in it? Is it an older home that you have been updating? Is it a newer home that has been significantly appreciating? What is the cost to continue to upgrade your current home with your current interest rate compared to purchasing a new home that maybe doesn’t need upgrades? We’ve sold several properties this year where the sellers felt like they needed to update a lot more than they actually needed to. If you are hoping to upgrade or get the most money for your property this summer is very likely the best time this year to do this. I’m sure your next question is, Why?  

If we look back at the 2022 market we saw a significant increase of interest rates which quite frankly halted our market Memorial Day weekend of last year making affordability almost impossible for most home buyers. The Feds will be meeting May 10th 2023 where they intend to drop inflation once again. This would potentially drop interest rates again this year making affordability easier than it has been in the last year. As a seller this is a great way to capitalize if you want to sell your home for the most amount possible. As we typically see in the Fall- rates will most likely increase once we near September/October which means this summer is going to be the best time this year to list your home. 

As a buyer this is also a huge opportunity to capitalize if you are hoping to grow long term wealth by investing in real estate. This spring Alaska was named one of the most stable housing markets in the nation making it a perfect place for homeownership and investment properties. We have always been our “own little economy” in many ways different than other places in the nation. With the Biden Administration approving The Willow Project this past Monday and the growth expected at Joint Base Elmendorf-Richardson over the next several years we expect our economy to continue to grow. In the next two quarters we expect demand for housing to rise pushing prices higher but with the stability of interest rates homeownership is more affordable now than it has been over the course of the last twelve months. 

If we can help with any of your real estate needs, both buying or selling, we would love the opportunity!