Buying or Selling in Anchorage?: Watch Interest Rates and Trends
by Dan Wolf
on Monday, April 6th, 2015 at 8:06am.
In Anchorage, Alaska, the real estate market changes rapidly. If it’s been a few years since you thought about listing your home or buying one, be prepared for a much different scenario. Putting off the sale or purchase of a new home in Anchorage could create a greater financial burden as most experts believe interest rates will soon rise. Team up with a trusted and experienced Anchorage Realtor who keeps a close eye on interest rates and real estate trends affecting buyers and sellers. A recent article by The Fiscal Times points out a lot of people list their homes in the warmer summer months. Look before you leap into the active real estate market this summer in Anchorage.
• Home prices reach record levels
Sellers will likely be pleased when listing their homes in Anchorage this summer. Home buyers coming to Alaska from states such as Wyoming, New York, Texas and Colorado often bring more money to the table since home prices are hitting record levels there. Across the nation, prices were up by almost 6 percent this year compared to last year.
• Interest rates remaining low
Although interest rates are still at historic lows, financial analysts insist they will be rising soon. You may qualify for a 4 percent or lower interest rate on a 30-year fixed. Interest rates are higher or lower depending on your credit score and the length of the loan. Get to your closing date as soon as possible or talk to a lender about locking in at a low rate 30 to 60 days ahead of the closing date.
• Sellers have the upper hand
If you haven’t searched for homes in the past year, you likely remember the buyer’s market during the Great Recession. At this time, it’s a full-blown seller’s market because of low inventory in Anchorage and around the country. As more people list their homes, the market could begin to tilt more in favor of the buyers. As a seller, be aware most buyers prefer turnkey properties.
Other real estate trends to keep in mind when buying or selling is the fact that most real estate investors are backing off, at least when it comes to traditional sales. Most investors are buying up the remaining inventory of Anchorage foreclosures to turn them into rentals. Speaking of rent, experts say it’s cheaper to buy than to rent. Since credit is looser and rent is high, most young people see the advantages of becoming homeowners as quickly as they can.
At Wolf Real Estate, we look forward to helping you hunt for a new home in Anchorage or list your current home. For more information about how interest rates and real estate trends affect your decision to buy or sell, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com.