Alaska presents a real opportunity for real estate investors. Homes sales are still relatively low and the state’s economy is on the upswing. Here’s what you need to know about the best real estate markets in Alaska.
If you’re an investor looking for a real estate market that appears to be turning around after years of decline, then you will want to check out Alaska. It’s not just the real estate sector that seems to be on an upswing. The state’s economy is fuelling job growth after years of recession.
It’s no secret that the oil-dependent state had seen its share of job losses over the past decade. In 2016, it lost 1.82% of its jobs. It lost another 1.25% the following year. But economists now have a sunnier economic forecast for the state.
The years of decline have also pushed real estate values in the state to near rock bottom prices. With Alaska’s economy on an upward trend, now may be the time to invest in the state’s real estate sector.
Here are the 5 Best Real Estate Investment Markets in Alaska.
This the town made famous by its former mayor and former vice presidential candidate Sarah Palin. This town is one of the shining stars of Alaska real estate.
The downturn in the energy sector has hit many towns hard when it comes to home value appreciation. In fact, many towns and cities have seen negative growth in the real estate sector for many years. But Wasilla has bucked the trend. And it’s done it a dramatic fashion.
The median home value in Wasilla is $267,000. It saw a huge $14.2% one year change from 2017 to 2018. The forecast for this year is less dramatic. But real estate values in the city are still expected to go up by about 4%.
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Juneau is a hot real estate market right now. Its economy is not dependent solely on resource extraction. In fact, its population swells by about 6,000 people a day during the summer when the cruise ships come in.
Juneau provides the perfect mix of a rural lifestyle with city activities. It has a thriving nightlife, there are plenty of restaurants, and you can always find a music festival.
The median home value in the state capital is $384,100. It saw a decline of 0.8% between 2017 and 2018. That is expected to improve slightly this year. But as the state’s economy begins to rebound, investors can expect greater returns in the years ahead.
Home values have been declining in this city for years. But a strong jobs forecast is also expected to help its housing sector. The oil industry employment in the state capital stabilized last year after devastating job losses over the past decade. That is translating into an increasingly robust housing sector with new construction projects continuously starting up.
Median home values in the state’s largest city are $331,000. They declined 2.3% from 2017 to 2018 and they are continuing to slide by about 1% this year. But the Anchorage real estate market has a limited supply of homes compared to what is expected to be growing demand as jobs return to the city.
» READ: Top Real Estate Agents in Anchorage
If you are looking for an affordable Alaska town in which to buy a property, then you should seriously consider Homer. The town is a tourists and residents delight. It is close to awe-inspiring mountains, alpine glaciers, forests and water. It also attracts tourists, fishermen and whale watchers.
Property values in Homer are also quite a bit below the state average. The median home value in Homer is $274,600. Compare that with the state’s median home value of $305,800. A two-bedroom rental property will get a return of about $1,140 per month. Rental properties are a particularly good investment in Homer due to their limited supply.
This is what historically would have been called a frontier town. It sits beside the Chena river and plays a major role in economy of the state. Its economy is based on jobs at the University of Alaska at Fairbanks, at local mines, and in forestry.
The median home values in Fairbank is $246,700 and it saw modest year-over-year growth of 0.7% last year. The city is a good place to invest in rental properties. In March 2019, the average rent for an apartment in the city was $1,110. One bedroom units also saw a 9.66% increase in rents last year.
The local university campus not only attracts young professionals to the city in need of homes to rent or buy, but it also provides a steady supply of students looking for short-term accommodations and willing to pay a premium on rent.
Seek Advice From A Professional Realtor
When it comes to real estate investments, it’s always best to get advice from a local real estate agent. A Clever Partner Agent can help you create a strategy so that you can build a portfolio that maximizes your return.
A professional real estate agent can also help you find out good contractors, lawyers, accountants and other professionals that you will need as you go through the process of purchasing your property. Clever partners with top-real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. Partner Agents are all full-service but save you money in the home selling and buying process, so you don’t have to compromise on anything.