Real Estate Trends Changing as Alaskans Hunker Down
While Alaskans "hunker down" and observe social distancing, the real estate market is going to slow. With business disruptions having a domino effect on incomes and the economy, a number of buyers and sellers will likely wait things out.
For Alaskan home buyers moving forward with their plans, there are 3 emerging trends to be aware of:
1. Mortgage lenders are beefing up credit quality. Higher credit scores, larger down payments and low debt-to-income ratios are being sought. Jumbo mortgages are seeing higher cash reserve requirements.
2. If sellers postpone their sales plans, home inventory could become very limited. As of early March 2020, the Anchorage area had just under 2 months of supply in price ranges under $350,000.
3. On the upside, mortgage interest rates should remain very low for a while.
For Alaskan home sellers, market challenges include fewer active home buyers and the uncertainties of the economy. This spring and summer will require some flexibility in your home sale plans. In the long run, Alaskan real estate demand should remain positive.
When you are planning to buy or sell an Alaskan home, we can help you! Our experience will give you the advantage you need in today's ever-changing market. Contact Madden Real Estate for expert guidance!
The Madden Real Estate Team
Madden Real Estate with Keller Williams Realty Alaska Group
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