Real Estate Odds and Ends for 2024: Insights from Dave and Travis

by David Johnson

REAL ESTATE MARKET UPDATE
" Real Estate Odds and Ends for 2024: Insights from Dave and Travis"
 
As 2024 comes to a close, we can’t help but reflect on the journey—filled with lessons, challenges, and wins. Travis hit his five-year milestone in real estate (and got married!), while 2025 marks my 22nd year in the business. We helped 25 clients cross the finish line, tackling lender delays, appraisals, and a few unexpected hurdles along the way. Not every deal made it to closing, but every experience sharpened our skills.

On the personal side, let’s just say we had a few curveballs. First, I had my right knee replaced 10/31/24—definitely an experience. Very thankful for my wife Karen and her nursing! 4 months later it still is a bit stiff and sore but hopefully golfing next month! Then on 1/10/25 Karen took a hard fall on hidden ice under two inches of snow and broke her ankle badly. It’s been a wild couple of months with a complete role reversal—both of us taking turns as patient and caregiver. If there’s one thing I’ll never take for granted again, it’s keeping a household running! Karen is able to carefully walk after 2 months of no weight bearing and is thankfully back to work (I get to take her in and pick her up).

Here’s to whatever 2025 has in store!
If there was a real estate "loser" in 2024 it had to be young people and especially first time homebuyer's. Seller's have remained in good position with continued low inventory and price increases. Below is some information from various sources.

What’s Happening in Real Estate Nationwide?
  • Median homebuyer age: 56 years old (oldest on record up from 49).
  • First-time homebuyers: Now 38 years old, up from 35 last year.
  • First-time homebuyers: 24% of sales down from 32%.
  • Multi-Generational sales: 17% of sales, a record high
  • Cash buyers: All-time high, making up 26% of transactions.
  • Homes sales: Final numbers are not available but it looks like we will barely hit 4 million sales for 2024. I'm told this number is about the same as 1995 and just consider how much our population has grown since then! I think there is lots of pent up demand waiting to make a move!
Mat-Su Core Area Residential Real Estate 2024 (fig 1)
  • Average Sold Price: The average home price has increased from $412,000 in 2023 to $424,000 in 2024. Notable milestones include a 16.16% increase in 2021 and a 2.91% rise from 2023 to 2024.
  • Number of Homes Sold: A total of 1,476 homes were sold in 2024, reflecting a 1.79% increase from 2023. The peak year for sales was 2021, with 2,165 homes sold.
  • $2,500,000: Highest Sales Price 2024
  • Days on Market (DOM): Homes in 2024 averaged 39 days on the market, slightly up from 38 days in 2023. This is a significant improvement from 83 days in 2010. The fastest-selling year was 2021, with an average of just 23 days.
  • New Construction: Sold at an average price of $468,000, with homes spending 64 days on the market, making up 19.5% of total sales. Existing Homes: Averaged $413,000 in sales price, with a quicker turnover of 33 days on the market.
Anchorage, Alaska Statewide and Kenai Residential (6 years)
We’ve analyzed 5 years of residential real estate data for Anchorage, Alaska statewide, and the Kenai Peninsula:
 
Anchorage Residential
  • Fewer Sales in 2024: While the number of sales ticked up from 2023 it is still a historically low number of sales at just 1690! I looked back to the early 90's and the lowest number I found was around 1950! Normal is about 2500!
  • Home Prices Are Up: 7.56% increase to $512,000. A growing opportunity for sellers!
  • Faster Sales: Average Days on Market (DOM) is just 24 – homes are selling quicker.
  • $3,236,000: Highest Sales Price 2024
Alaska Statewide
  • Steady Growth in Prices: 5.2% rise to $445,000.
  • Sales Volume Slightly Up: 4.41% growth in 2024.
  • Homes Are Taking Longer to Sell: DOM increased by 11.43%.
  • $3,500,000: Highest Sales Price 2024
Kenai Residential
  • Sales Are Rising: 9.28% growth in 2024 – buyers are active here!
  • Modest Price Gains: 2.40% increase to $384,000.
  • Selling Faster: DOM dropped to 54 days – the market is moving!
  • $2,660,000: Highest Sales Price 2024.
A 15-Year Journey Through the Mat-Su Core Area Real Estate Market

 
Predictions for 2025
  • Mortgage rates: Expected to settle around 6%, creating buyer opportunities and improved affordability. But don't expect sales prices to fall!!
  • Inventory: Gradual improvement as builders increase supply and life changes (retirements, job relocations) bring more homes to market.
  • Home sales: Forecasted to rise by 10%, with approximately 4.5 million transactions projected. We really need to be at 5-6,000,000 sales however to meet ever increasing demand
WHAT'S HAPPENING AROUND TOWN?
$10,000 New Home Construction Rebate – Now Accepting Applications!
Homebuyers could be eligible for $10,000 through AHFC's New Home Construction Rebate. This state-funded rebate would be paid to eligible applicants after completion of new home construction.

To be eligible, foundations must be completed and inspected on or after January 2, 2025 and applicants need to demonstrate that the home design meets a minimum 5-Star Plus or higher energy efficiency standard. Rebates are limited to funds available.
For Applicants
Power up an energy efficient home with AHFC's New Home Construction Rebate!
  • $10,000 rebate
  • Enhance the comfort of your home year round
  • Reduce heating costs and utility bills
 
For Builders & Contractors
Apply proven energy efficiency materials to your new build.
  • Help your customers qualify for the New Home Construction Rebate
  • Increase Alaska’s housing inventory
  • Support energy-efficient construction
 
For Energy Raters
You can play a critical role in helping Alaskans qualify for a cost-saving incentive.
  • Get details on the New Home Construction Rebate energy rating requirement
  • Learn what applicants may need from an energy rater to apply
  • Access tools for AHFC-authorized energy raters
 
For Lenders & Partners
Help your customers navigate their options.
  • $10,000 New Home Construction Rebate paid directly to eligible homeowners
  • Rebates available on a first-come, first-served basis
  • Makes homeownership more accessible
 

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
Call or text Travis now at 907-575-6779

davesalaskahomes@gmail.com

http://www.DavesAlaskaHomes. com

 
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David Johnson

Broker Associate | License ID: 15839

+1(907) 863-7289

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