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Tait Zimmerman
(907) 519-0043
tait@advantagealaska.com
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Monday Morning Mojo: What’s Going to Happen in the Real Estate Housing Market?

 

We’ve been living in some strange times. Not Mongol invasion, bubonic plague, Russian Revolution strange times, but definitely different from pre-2020. Who would have thought that when COVID hit we’d be seeing a record surge in homes sales? Nationwide housing prices are up 25% since March 2020, and we’ve seen a similar trend here in the Valley. Home inventory hit record lows not seen since record-keeping began.

Many experts have analyzed the situation from all types of angles. Factors such as looming housing shortages finally coming to a head, a new demographic entering the housing market, lumber prices, life disruption leading to people making housing/location changes, rising cost of rent, low interest rates, and more all appear to be factors.

So, what’s going to happen from here? This has been the number one question I’ve been asked since COVID hit in 2020. And I just have to say, I don’t know for sure. I don’t have a crystal ball. There are the two schools of thought I consistently hear:

a) The market has gone up like crazy, and we have a crash in home prices coming.
b) Inflation is going to continue to drive prices up and this is the cheapest we will ever see real estate prices ever again.

I have gone back and forth, and see merits to both lines of thinking, but I lean towards perspective “b.” While we might have a 2008 crash, the price of real estate over time has always gone up, and the value of the dollar goes down. When it comes to home prices, apart from some cataclysmic doomsday scenario, the 2008-like scenarios tend to be a temporary blip on the long-term trajectory. Sure, people who are hit hard financially can be devastated in such situations, especially if they are over-leveraged; but with that said, the effects are temporary for those who can weather the storm. Of course, this doesn’t take into account local declines (i.e. oil crash in the 80’s). Even with this said, real estate historically is a better investment than the dollar, and those who invest in real estate tend to fare much better than those who don’t.

Dave Ramsey isn’t my guru, but I thought it was interesting to hear his thoughts: 
 https://www.youtube.com/watch?v=r8B-Com5Z2k

Of course, I could be wrong. Something unprecedented in the US housing market could happen. There’s a margin of error. With that said, housing prices generally go up over time, and the value of the dollar goes down. Not to mention the rampant spending/fiat money creation we’ve been seeing. We probably haven’t reached the end of the rise in inflation.

But, keep in mind, I don’t have a crystal ball, I’m not an economist, and am only sharing my humble observations of the local, national, and historical housing markets.

Whatever your take on things, if you are looking for a home to purchase, I’d love to go over your home buying goals and get a customized search set up! If you are considering selling, I’d be happy to provide a free market analysis.

Let me know how I can help! Happy Monday,

Tait Zimmerman
Advantage Alaska Real Estate
www.AdvantageAlaska.com
907-519-0043

“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

So great helping Michael and Denise sell their home and then buy their dream home! I helped Denise buy her first home in Alaska 11 years ago, and this makes the fourth time helping them buy and sell homes. Their home sold in 30 days for over full price, and we were able to pull off a simultaneous closing on the new place! Congratulations!! 🏠

Michael and Denise August 15, 2021

Posted in: Monday Morning Mojo Tagged: Advantage Alaska Real Estate, Monday Morning Mojo, Tait Zimmerman

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What Our Clients Say

Awesome helping Chris sell his home! 100% of asking price in 4 days on the market!!

Chris

June 1, 2023

So cool helping Jacob and Meghan buy their home 5 years ago and now sell it in 4 days for 103% of asking price! Congratulations!! 🎉🏠

April 23, 2023

Loved helping Hugh and Linda sell their home so they can move on to the next adventure! Sold in 27 days!!

April 23, 2023

Wonderful helping Mike sell his home in Peters Creek! As much as I don’t like challenges during a transaction, they certainly make getting awesome feedback from a seller at the finish line that much more rewarding!!

Mike April 4, 2023

Sold in 106 days on the market (average for commercial that sells in this price range in Anchorage is 136)! Let me know if you'd like to buy or sell in the Anchorage/Mat-Su Valley areas!!

6239 B Street February 4, 2023

Awesome helping Bridgett buy and sell for the second time, in addition to helping several of her family members purchase homes recently! Congratulations!! 🏠 🔑 🎉

Bridgett January 2, 2023

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1330 E Bogard Rd., Wasilla, AK 99654

(907) 519-0043
tait@advantagealaska.com


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