Anchorage, Alaska Real Estate Forecast Looks Good For 2013
by Dan Wolf
on Thursday, January 10th, 2013 at 2:37pm.
The upcoming year for Anchorage, Alaska real estate may depend a lot on the government, both Federal and State, in terms of both funding and regulations.
According to this article from the Alaska Journal of Commerce, there's good reason to be cautiously optimistic about both construction and real estate in 2013.
The Associated General Contractors of Alaska won’t release its full construction forecast until February, but Executive Director John MacKinnon said the civil construction outlook is positive. With an anticipated decline in Department of Defense spending for 2013, military construction could slow down substantially. However, it’s possible that decrease could be offset by state spending. It all depends on how the final state capital budget shapes up.
The real estate market in Anchorage is gaining strength, with recent increases in single-family home sales, as well as slightly higher sale prices. The low inventory has also helped to strengthen new home construction in the Anchorage area. Last week Neil Fried, State Department of Labor economist, gave an encouraging report showing an increase in both jobs and population over 2011. His prediction was modest growth in 2012 of approximately 1%.
The overall real estate market has been flat since 2007, however 2012 numbers look like an increase in sales value over 15% in single family homes. After several sideways years, it appears real estate prices increased approximatley 4% over the previous year. Condominium sales had an increase in number of sales, but prices were basically flat over the prevous year.
New construction shows signs of life with an increase in the number of building permits over the previous year which is exciting after several years of very limited construction.
Meanwhile, those of us in the real estate industry are waiting to see how implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act will impact the local housing market.
The legislation was passed in 2010, in part to protect home buyers from getting stuck with mortgages they couldn't really afford to pay for. Dodd-Frank includes new requirements for home-buyers, such as more detailed proof of income. In addition, a minimum down payment may be required, but this will depend on whether or not industry regulators ultimately decide to include that stipulation.
If a minimum down payment is enacted, it will likely have a negative impact on the real estate market by making it more difficult for potential buyers to obtain a loan. For the time being, things look positive, and it’s a great time to sell your Anchorage home or start looking for a new one. Whether you are looking to sell, buy, or both, contact us to find out how our experienced team can help you accomplish your goals.