ALASKA - If you're looking for Alaska Real Estate Stats and Trends for the year 2023, you've come to the right place. In this article, you'll discover which markets are most likely to see declines in the next decade and which will see home price growth slow. Then, you'll discover why Fairbanks will likely be one of the most affected markets in 2023.
Home Price Growth Slowing In 2023
The housing market in Alaska is showing signs of slowing growth, although the market remains healthy. In the last year, the price of homes in Alaska increased by 2.6 percent, which is slightly below the national average. However, the state's median home price remains over 40 percent higher than in the rest of the country.
In June, home prices jumped 18.3%, which marked the 125th consecutive month of price growth. Nonetheless, the pace has slowed and is expected to be 4.3% by June 2023, a level closer to the long-run average for Alaska from 2010 to 2020.
A slowdown in home price growth in 2023 is likely due to a shortage of homes. There is a high demand for homes, and supply is limited. This will slow down home price growth, so the price of homes may decline in 2023. However, this does not necessarily mean that the home market will be flooded.
While there are fewer homes for sale in Anchorage, the city's real estate market remains strong. As of year-end 2017, there were 547 single-family homes for sale in Anchorage. The monthly sales pace rose by 2.3% compared to the same period last year. The price of homes in Anchorage under $500,000 has an inventory of under three months, while homes in the $300,000 to $400,00 range have an average of 51 days on the market.
While housing prices are currently high, Alaskans should keep an eye on the state's economy. With high demand, it is important to ensure that homes are available and affordable. Assuming home prices are stable and the state continues to attract residents, Alaska will see strong home prices and rents.
Fairbanks Tops The List Of Most Likely Markets To See Declines In 2023
According to a new report from Zillow economists, Fairbanks, Alaska, is among the top 20 markets that will experience a decline in home values in 2023. In July, Zillow economists predicted that only five regional housing markets would experience a decline, but that number has increased to 123. Of those, four will see declines of more than 5%. Among those four, Fairbanks is the only market with an expected decline greater than 7%.
The forecasts are based on the CoreLogic Market Risk Indicator, a monthly survey of housing markets around the U.S. According to the report, the price of homes in Fairbanks is expected to decline 8.6 percent in 2023. The remaining markets will see flat or declining prices.
In 2023, Fairbanks has the most housing inventory of any U.S. market, at 54% below its July levels. Even though the number of available properties has been increasing for the past several years, home construction is still far behind. As a result, a significant decline in home prices would require a significant drop in buyer demand.
Zillow's 12-month outlook is also downgraded - this time by 7.8%. Despite the positive news about the economy, it still sees the region's home values declining by 2023. In July, Zillow's forecast forecasted 1.4% growth in the U.S., but that forecast has since been revised downward.
Housing market still hot in Anchorage
The housing market in Anchorage, Alaska, is still hot despite the rising price of new homes. In August, the median price for a single-family home was $375K, up 7.1% from the previous year. The average sale time was 12 days, and the number of homes sold in that time span was 464.
With low inventory, the Anchorage market has remained hot. Prices rose 8.9% in 2021, slightly below the record price set in 2005. Low-interest rates also helped push up prices for a second straight year. The state also received pandemic relief payments, which increased the amount of money available to purchase a home. However, rising interest rates have increased home loan payments, which is a concern for many homebuyers. As a result, the market remains hot, bidding prices well above the asking price.
The forecast for 2023 for the Anchorage housing market is mixed. Most housing industry experts predict a slower recovery, with fewer buyers and prices decreasing slightly. However, the forecast is optimistic compared to the overheated market of 2021. While a slowdown would be a positive outcome following the housing pandemic of 2021, the slower pace of growth could also help avoid a real estate crash in 2023.
Even though the housing market is hot, a shortage of new properties and rising interest rates will only add to the stress on prospective homebuyers. Interest rates on a typical home loan have risen from 3% to 5% in two years. This means an additional $200 per month payment for the buyer.
