Hello! Hope everyone’s new year is off to a great start! In addition to my weekly market trends reports, I like to periodically send out something about the bigger picture/national level as well. I thought I’d mix it up and give a link to an excellent video on the national market, as well as an overview of the statewide trends here in Alaska over the last couple of years.
Check out the Altos Research breakdown of the national trends here: Altos Research Video
Short version: This year, we’re not necessarily seeing signs of the crazy, abnormal seller’s market like we’ve seen since 2020. With that said, we’re also not seeing any signs of a market drop/crash either. Demand continues sufficiently high, and inventory sufficiently low to make that unlikely. Specific markets might experience corrections, but overall things are pretty level. Basically, it looks like we’re returning to a “normal” market based off of the info available currently.
I’ll include links to multiple PDF market reports for the last couple of months specific to Alaska, but here are several highlights:
You’ll see in the Market Summary that certain key indicators have ticked up, like days on market and the absorption rate, but these numbers are still amazingly low for our local area. For example, the absorption rate in Anchorage right now is just under 1 month, while Wasilla is pretty similar at 1.5 months. Just to put that in perspective, 1-4 months of inventory is a seller’s market, 5-6 months of inventory is a “balanced” market, and 7 months or more indicates a buyer’s market. What does this mean for the future? If nothing else changes (i.e. Fed mortgage rate hikes), we’re likely to see home prices increase locally (most likely not at the rate we’ve seen over the past several years).
In the “My Market” trends reports you’ll be able to see the trends for days on market and average sales prices since January 2020. They point to a healthy market, and historically low inventory in the local area.
What does all of this mean? It’s a good time to sell your home if it fits into your goals. And if you are looking to purchase, there is no reason to wait unless you are hoping for interest rates to go back down (I wouldn’t be holding my breath for that to happen soon based off of what the Fed has communicated).
Let me know if I can help you with your real estate goals!
Links to reports mentioned:
Anchorage Market Summary Report (click here)
Wasilla Market Summary Report (click here)
Anchorage “My Market” Report (click here)
Wasilla “My Market” Report (click here)
Advantage Alaska Real Estate
“Your home sold in 90 days, or I’ll sell it for free!”
P.S. ~ My goal is to always do an excellent job for my clients. If I’m doing a great job for you, please consider passing my name on to others who are looking to buy or sell real estate in the local area.