Anchorage Alaska Real Estate Affected by Stock Market Correction

Posted by Dan Wolf on Friday, January 22nd, 2016 at 7:56am.

When it comes to how the recent stock market correction affects Anchorage, Alaska real estate, experts have different opinions. If you want to list your Anchorage home this fall or winter, the chances are you will find plenty of prospective buyers.  Of course, price and condition matter a lot.  Most active real estate experts believe the market will remain active on house priced below $550,000.  The median price in Anchorage is close to $345,000 and we expect that market to remain strong because home inventory is limited. 

Depending on whether you live in a high demand neighborhood or own a home with popular features, you could sell your home for above listing price. At the same time, it is prudent to keep realistic expectations since Anchorage Alaska real estate prices appear leveled out. According to an article by CNBC, buyer fatigue has set in as some buyers wonder whether a home is worth a high listing price. Before setting your price too high, consult with an experienced Anchorage Realtor. Consumer confidence in housing is down slightly, but it is not clear yet whether the recent 1,000 point drop in the Dow and stock volatility will derail housing.               

Selling while rates are low

Some home sellers don’t think mortgage rates matter to them because they are selling and don’t need a mortgage. In reality, mortgage rates are relevant for sellers because most potential buyers can’t afford to spend as much on a home if they have to pay higher mortgage rates. If you plan to sell in the next several years, consider selling while interest rates are still low. Most economists believe the Federal Reserve plans to increase rates.

Considering the threat of a crash

A stock market crash could signal the beginning of a secular bear market, which is a down stock market that lasts for several years. Because the stock market boomed for the last 6 years, many financial experts fear a stock market crash is imminent beyond the recent market correction. Because fewer people can afford homes during a recession, it could become more difficult to sell if the economy takes a down turn.


For home sellers in Anchorage, the stock market declines could also help homeowners with starter homes or homes at lower prices points. Many baby boomers plan to retire to Anchorage. Boomers who lost money in the stock market correction could be more in the market for homes in lower price points.


At Wolf Real Estate, we dedicate ourselves to helping people find homes they can afford in Anchorage, Alaska. For more information on Anchorage Alaska real estate trends, please contact us at 248-9653, email at "team@wolfhomes.net" or visit us online at www.anchoragehomesearch.com.

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