3 Reasons to Be Optimistic About Alaskan Real Estate in 2021
We're just days away from the new year and we're all glad to put 2020 behind us! There will be much to look forward to in the coming months, and we are excited to report one of them is the real estate market!
As your local real estate experts in Alaska, we are including below three of the most important reasons we can be optimistic about real estate in 2021.
The economy will only improve
According to Tim Duy from the University of Oregon, “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
Interest rates will stay low
Mortgage rates hit all-time lows more than five times in 2020 and they are projected to remain low as we head into the new year!
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. Not only will these low rates continue to make homes more affordable for Alaskan buyers, but they will drive more demand for housing in 2021.
Future home sales will grow
In the coming year, we can expect the economy to improve and mortgage rates to stay low, but we can also expect homes to continue appreciating as more buyers purchase homes in 2021!
According to Danielle Hale, Chief Economist at realtor.com, "We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year."
Both buyers and sellers in Alaska are expected to be active in 2021, so don't wait if you have a move you'd like to make or real estate goal to achieve!
Ready to get a jump on your home search in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla, or North Pole right now? Give our Madden Real Estate team a call or reach out via email!
We look forward to working with you in the new year ahead!
Don't forget! We even have a Love It or Leave It Guarantee which means, If you buy a home through us and you are not completely happy with it, we will list it for free while you search for a home you love!
The Madden Real Estate Team
Madden Real Estate with Keller Williams Realty Alaska Group
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