Looking back at 2023 and forward to 2024 with Dave's Alaska Homes
At Dave's Alaska Homes, we're not just about the numbers; we're about the stories behind them. Each home sold represents a family's new beginning, a savvy investor's choice, or an individual's personal achievement in our community. Whether you're contemplating buying, selling, or simply staying informed, we invite you to dive deeper into our full report. Discover how these trends can guide your real estate journey in 2024 and beyond. For a detailed analysis and a personalized consultation, reply to this email or contact us at Dave 907-863-7289 or Travis at 907-575-6779.
It's not all roses in today's market. We're navigating through high interest rates and fluctuating affordability, which has certainly impacted sales volumes. However, with challenges come opportunities – for both buyers and sellers.
Below is the numbers where we stand today in the "Core Area" of the Mat-Su Valley.
To appreciate our current position, let's glance back:
These comparisons highlight a significant shift in market dynamics, including a steep increase in property values. The big gain in real estate equity in the last 5 years is profound!
We've been closely monitoring market trends, and the data from the last 14 years.
Here’s a concise overview of what transpired in 2023 and what it means for you:
Pricing Trends: The average sales price saw an upward trend, ending at $412,000, which is a 4.04% increase from 2022.
Home Sold: There was a significant 24.24% reduction in the number of sales, with only 1,450 homes sold compared to the projected 1,700.
Days on Marker (DOM): Properties were selling faster, with the average DOM reducing to 38 days, indicating a 26.67% decrease from the previous year.
The key issue we faced (and continue to face) was the low inventory, particularly in the sought-after $400,000 price range. This scarcity has been the driving force behind the reduced number of sales. Had there been more availability, we believe the sales figures could have been much higher.
Currently, inventory levels are nearly half of what we had pre-pandemic in 2020. While it's true that 2023 wasn't an easy year for Realtors, and arguably one of the toughest, it's also true that homeowners experienced an increase in equity. With interest rates on the decline, we anticipate this equity growth to continue, presenting opportunities for both buyers and sellers as we move into 2024.
In Anchorage, we've witnessed a remarkable growth, with average sales prices leaping from $375,000 in 2019 to a notable $481,000 in 2023, marking a significant 28% increase. The statewide scene echoes this positive shift, showing an ascent from $314,000 to $423,000 in the same period. Despite the ebb and flow of sales volumes, the consistent appreciation in property values highlights the unwavering appeal of Alaskan homes. If you're contemplating a sale or eyeing an investment, now's an opportune moment. The climbing prices reflect a strong market brimming with potential for both homeowners and investors.
Here's a a brief yet insightful update on the MAT-SU real estate market's five-year trend: Land value has appreciably increased from $70,000 in 2019 to $88,000 in 2023, signaling strong demand and growth potential. Concurrently, multi-family properties have shown remarkable gains, with the average sales price soaring from $435,000 to $588,000, coupled with a faster sales pace. These trends underscore promising opportunities for both land and multi-family property investors in the MAT-SU area, indicative of a thriving market with significant return potential.
For a closer look at these trends and to discuss how you can capitalize on these opportunities, feel free to reach out.
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If you or anyone you know has ANY thoughts of buying or selling real estate, lets connect to talk about the opportunities available in our market and how to reach your goals.
LET US BE YOUR TRUSTED GUIDE
Call or text Dave now at 907-863-7289
Call or text Travis now at 907-575-6779
davesalaskahomes@gmail.com
http://www.DavesAlaskaHomes. com