December 2023 Real Estate Market Update with Dave & Travis!
As the year draws to a close, we at Dave's Alaska Homes are excited to share with you the latest trends in the real estate market for December. Whether you're a homeowner, an investor, or someone on the lookout for a new home, understanding the market dynamics is crucial in making informed decisions.
Reflecting on the past five years, December has proven to be a crucial month for Alaskan real estate. In 2019, the market was vibrant with 472 active listings, but experienced a decline the following year and the year after. However, it's now recovering slowly, with 260 homes currently on the market. This real lack of supply is a nationwide issue with no real end in sight. The big question is whether we will see a significant uptick in supply (especially existing homes) in 2024???? The demand (pending sales) aligns with this trend, as indicated by a peak of 406 pending sales in 2020, and 213 ongoing sales now. This is about 30% fewer than 2019 but in line with last year. Any comments?
The year started with 193 listings and varied through the months, peaking at 324 in September, showcasing the Valley's appeal. December ended with 260 listings. Similarly, pending sales began at 212, peaked at 334 in August, and settled at 213 in the winter, reflecting a seasonal pattern.
Good news for potential buyers! Mortgage interest rates have dipped to around 6%, with projections hinting at a further decline as we move into 2024.
As 2023 winds down, we're seeing remarkable trends in MATSU VALLEY's real estate. Dave's Alaska Homes has kept a pulse on the market and here's the essence: 2023 has seen a big drop in the number of sales (again a nationwide issue). But the average sales price is up almost 5% from 2022 which again is consistent with the nationwide trend.
While the number of sales has varied, peaking at 2,017 in 2021 before settling at 1,380 this year, the average sales price has soared impressively from $264,903 in 2016 to $413,903 in 2023. Homes are selling faster too, with days on market significantly dropping from 62 days in 2016 to 38 days currently. These trends showcase a robust market with growing investment value. For personalized advice and insights, contact us – we're here to help you make the most of these developments.
We understand the unique financial landscapes our clients face. Whether you're considering buying or selling, we're here to provide you with the expertise and support needed to navigate this dynamic market.
Conventional financing has led the way with 452 homes sold, closely followed by VA loans at 451 homes. It's clear that these financing options continue to be popular choices among homebuyers. Additionally, cash purchases remained strong with 174 homes sold, reflecting the confidence and investment in our local real estate.
FHA loans facilitated 170 families in finding their new homes, demonstrating the value of flexible financing options. Surprisingly, Seller Financing emerged as a creative solution for 22 sales, and AHFC programs aided 68 families in their home-buying journey.
While USDA loans and other financing methods accounted for 16 and 31 homes respectively, they played a crucial role in fulfilling the diverse needs of our community.
As we step into December, it's crucial to understand these trends, whether you're considering buying, selling, or just curious about the market. At Dave's Alaska Homes, we're dedicated to helping you navigate these waters with ease and confidence.
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Let's make your real estate dreams a reality. Contact us today to start your journey!
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Call or text Dave now at 907-863-7289
Call or text Travis now at 907-575-6779
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