Whether you’re buying or selling a home in Alaska, or simply considering the prospect, it pays to understand the housing market trends that can impact your decision.
Housing markets fluctuate often and can vary by state or region. If you’re looking to buy or sell a home in Alaska, you need to understand the unique conditions that affect the home’s selling price.
Here’s a closer look at Alaska real estate trends in 2019 and how to use this information to your advantage.
2019 Real Estate Market Forecast for Alaska
Home prices in Alaska have steadily grown since the housing crisis a decade ago, but that appears to be about to change over the next year. Right now, Alaska is experiencing a “warm” market, which favors sellers but isn’t quite considered a seller’s market. A seller’s market occurs when the demand for homes outpace the supply. The current market shows a healthy supply vs demand that could be beneficial to both buyers and sellers alike.
The current median home value in Alaska is $308,000, a drop of 0.8% since last year, and is expected to drop another 1.3% within the next year. The median price of homes sits significantly lower than the median home value at $282,000, which could play to the buyer’s favor (especially if you’re considering investing). The state has been enduring a mini-recession since 2015 due in part to low oil price.
However, keep in mind the forecast may look different in specific cities or areas compared to Alaska as a whole. For example, some reports believe that the Anchorage and Fairbanks markets will be up over the next three years.
Part of the driving factor will be Alaska’s economic outlook. Its major industries include oil and gas, education, fishing, and tourism, among others. Researchers suggest that Alaska will experience a 0.4% job growth rate (about 1,400 jobs) this year alone, and up to a 6% job growth rate by 2024, which bodes well for the health of the housing market.
When Is the Best Time to Sell a House Alaska in 2019?
Due to its colder climate, the prime selling season for Alaska real estate is significantly shorter than other states. Homes tend to be sold quicker in May through July and experience a sharp decrease in activity when summer ends.
If you want to sell your home quickly, the worst time to list a home is January. Homes tend to sit on the market for 134 days on average, which could either force you to drop the price or put off your next step.
This tends to be the trend in just about every major Alaska city. Juneau is showing a little more real estate activity in favor of the seller. Homes tend to sell the quickest in March and July (about 54 days), while January sees an average of 112 days on the market.
Minor discrepancies like these illustrate the importance of timing the market. Depending on how quickly you want to sell your home, even a few extra days on the market could set you back from your goals.
When Is the Best Time to Buy a House in Alaska in 2019?
If you’re buying a home in Alaska, you’ll want to wait for spring or summer for several reasons.
First, there tend to be more homes to choose from, giving you more chances to find what you’re looking for. Those who don’t want to spend another winter in Alaska will be listing their properties around this time. A larger supply of homes gives buyers more room to negotiate on price.
Also, you get the best opportunity to check out your natural surroundings (Alaska’s outdoor scene is stunning!). Starting your home shopping as late as July still gives you enough time to find that perfect home, close, and move in before winter hits.
Whether you’re buying or selling a home in Alaska (or both), the first step is to partner with an experienced local real estate agent for guidance and support throughout the process. Your agent can help you time the market and negotiate terms to give you the best possible chance of achieving an optimal outcome.
Clever Partner Agents are a smart choice for Alaska home buyers and sellers. Fill out our online form and we’ll be in touch for a no-obligation consultation.