Alaska Real Estate: Why You Should Buy a Home in Fairbanks, Anchorage Before Winter
While summer has just about finished and Alaska residents may not yet be ready to think about winter, homebuyers would be wise to start the real estate process early. There's a reason summer is busy for the Alaskan real estate market— conditions are ideal for moving and families are ready for a change of scenery. If you sat on the sidelines this summer, not quite ready to purchase a home in Fairbanks or Anchorage, no problem! But you won't want to wait until winter to make the move.
Prices will be higher
You may have already noticed that home prices and mortgage rates are rising, so don't delay. As we get closer to winter, the prices will continue to rise and as a result, so will your potential mortgage payment. One strong piece of evidence proving that it no longer makes sense to wait is the Home Price Expectation Survey which surveys economists, investment experts and housing market analysts. Their recent report suggests home values will appreciate between 11.2% (the lowest) and 27.8% (the highest and most optimistic) over the next five years.
You are paying for a mortgage either way
If you're renting a home in Eagle River, Palmer, Fairbanks or Anchorage you may not have realized you are paying a mortgage either way, no matter if you rent or own. For renters, you are paying down your landlord's mortgage. For Alaskan homeowners, you are paying down your own mortgage. By buying a home before winter, you're not only making a smart investment in real estate but in your net worth.
Homeownership is less expensive than renting
With the rising costs of rent, homeownership is now the less expensive option for housing. In fact, mortgage rates would have to rise to 10.6% in order for renting to become less expensive than owning a home. What's more, rates have not been that high since the late 1980's! The current low mortgage rates in Alaskan real estate have allowed homeownership to emerge as the best investment and the cheapest option. Take some time to consider where your money is going for your housing payment each month and if you're ready to purchase a home, Madden Real Estate is ready to help!
Summer has been busy for homebuyers and home sellers in Fairbanks, Anchorage, Eagle River, Palmer and North Pole. The conditions in the local real estate market have been ideal and will remain that way until the winter season rolls around. At Madden Real Estate, we can help you with both your decision to buy a new home or sell your current home— let's discuss how you can make the best investment!
We look forward to hearing from you!