Here’s Why the Alaskan Real Estate Market Won’t Crash in 2023: Top 5 Insights from Inman and from Dave
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“Here’s Why the Alaskan Real Estate Market Won’t Crash in 2023: Top 5 Insights from Inman and from Dave“
As the twists and turns of the real estate market keep us on our toes, it’s vital to stay informed and be ready to adapt.
In this spirit, we wanted to share with you a recent blog post from Inman that decodes the current housing market situation.
Titled “Here are 5 reasons we won’t see a housing market crash this year,” Michael Gifford’s comprehensive piece is a treasure trove of insight and I have added some comments about our market in South Central Alaska.
Although Alaska’s real estate patterns can be unique, understanding the general market sentiment is key for anyone interested in property buying, selling, or investing in the greatest wealth building opportunity, real estate.
1.Limited Inventory: There’s a high demand and low supply situation, particularly with new builds. This is driving up home prices! In South-central Alaska the housing shortages are particularly acute ESPECIALLY in our largest city Anchorage. This week there were just 35 condo’s for sale (OVER 350 in 2019!!) and just 128 homes for sale (over 500 in 2019!!). Its really tragic. The condo we pended had over 10 over asking price offers leaving lots of great buyers disappointed.
2.Reluctant Homeowners: Low-rate mortgages and an affordability crisis mean homeowners are hesitant to sell and buy at higher rates or prices.
Many are opting to renovate existing homes or use their home equity to shore up their finances. In the valley about half of the 240 active listings are new construction. Normally new construction would be about 25% of active listings!
3.Tight Credit Availability: Unlike the 2008 housing crisis, credit access is restricted, and risky mortgage products are off the market.This is contributing to a more stable lending environment.
4.Low Mortgage Delinquency Rates: Lenders are prioritizing borrowers with high credit scores, leading to lower default rates. Still no sign of a big jump in foreclosures to boost inventory!
5.High Home Equity: Homeowners currently have unprecedented levels of home equity, reducing the risk of foreclosures significantly. We have NEVER seen such huge increase in equity in so short of time. My estimate of home equity gained since 2020 is 40% or more on average. This is HUGE!
These factors indicate that despite potential volatility, we are unlikely to see a significant market crash in 2023.
So, what’s the 2023 outlook for Alaska?
With homeownership being more appealing & needed than ever, 2023 is shaping up to be a challenging year in Alaskan real estate for home buyers while home seller’s are in a great position. It is still complicated navigating the whole process to closing!
Whether it’s leveraging home equity, investing in property, or even considering renovations to increase home value, there are numerous opportunities for those willing to be creative in this vibrant market.
Our team is always ready to assist you. We understand the unique dynamics of the Alaskan market and can help guide you towards informed decisions, whether you’re a buyer, seller, or investor.
Check out our Beautiful Listings at https://davesalaskahomes.com/featured-listing
Search for homes easily at https://davesalaskahomes.com/listing
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If you or anyone you know has ANY thoughts of buying or selling real estate, lets connect to talk about the opportunities available in our market and how to reach your goals.
LET US BE YOUR TRUSTED GUIDE
Call or text Dave now at 907-863-7289
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