Alaska has been feeling the strain of lower gas and oil prices. From unemployment to a dwindling population and teaching shortages, the effects are reverberating throughout the state. Perhaps nowhere are the effects more noticeable than in the real estate market. Those who remember the economic crash of the 1980's might be fearing for the worst. However, unlike in the 1980s, Alaska has a large amount of savings in reserve to help it recover from any recession. The outlook for Alaska as a whole is positive, but different regions in Alaska have a better outlook on the real estate market than others.
Fairbanks is expecting the arrival of at least 3,500 military members in 2020 with two new F-35 squadrons coming to Eielson Air Force Base. Although this will be a boon to the economy, in the long run, extra housing will have to be constructed in the North Star Borough area over the next few years in order to house a large number of military in the area. Eielson's housing units are all currently full except for those currently being renovated and there are no plans underway for Eielson to add more housing units to the base. This might be a big boon for people hoping to sell their houses in the next few years on the east side of the borough.
In Anchorage, home prices are flattening out after four years of rising prices. The average price for a single-family home went from $366, 909 in 2015 to $366,015. A new construction averages at around $500,000. Although the drop in home prices is small, it might mean that buyers might want more concessions, such as covering closing costs, before closing the deal. All of these concessions can really add up for the seller, often into the thousands of dollars. Housing inventory on the market has been higher and takes longer to sell. Homes in Anchorage are often sitting on the market for an average of 50 days.
The real estate market in the Matanuska-Susitna borough remains strong and shows great promise for the future. New home construction is up. While the rest of the nation saw a 30% decline in housing construction on average, the Mat-Su Valley saw a 20% increase in new homes being built. New homes are on the market for only 31 days. Average home prices are also much more affordable to the average homebuyer in the $225,000 - $250,000 range. These homes are over $100,000 less than Anchorage home prices. So while there is always a potential for a cyclical downturn in the real estate market in the Mat-Su Valley, the real estate market is currently doing quite well here.
If you are considering buying or selling your home in the Mat-Su Valley, considering calling the local real estate experts at www.teamrogershome.com. We can help you find the right home for your budget and your needs. If you are trying to sell your home, we can help you every step of the way.