Alaska Real Estate

Alaska is full of large expanses of untouchable wilderness. It is cold all year round the sun shines only six months of the year but it is perhaps some of the most beautiful country you will ever see. Pristine white, it glitters like millions of diamonds as the sun touches it. Most people may wonder why anyone would want Alaska real estate considering the almost constant freezing temperatures, all the snow and ice. There is nothing to wonder however, Alaska real estate may be mainly raw land but it is some of the most beautiful land you will ever see.

The majority of Alaska’s population is located in the southeastern portion of the state the rest of Alaska’s real estate is considered raw or vacant land. Millions of acres of land that is empty of anything but wild life. Wild life is one of the major draws for people wanting to invest in Alaska real estate. The entire state is an excellent hunting and fishing ground. There is also the fact that Alaska is rich in oil. Purchasing Alaska real estate could give you access to some of the oil that Alaska holds. More often though, you will end up with a wonderful piece of land full of unspoiled natural beauty land however can be had relatively cheaply compared to other areas because of the remoteness of the land, the difficulty reaching it and the fairly hostile climate.

The market of Alaska real estate is doing fairly well despite all of these, sales prices are up an average of about 1.6% over the previous quarter. This is the good news unfortunately for those looking to purchase property there are currently less homes on the market. For those selling, homes are taking longer to sell.

The Fairbanks and North Pole Alaska real estate areas have been some of the hardest hit when it comes to new construction. With Fairbanks Alaska real estate new builds, dropping almost eight percent and the North Pole Alaska real estate new builds dropped a little over nine percent. Out of the homes currently on the market, more than twenty-five percent of them have been sitting on the market for at least six months, while approximately eighteen percent were on the market for more than a year.

Interest rates for the current market are sitting somewhere between the 6.5 and 6.65% range. Anchorage is currently seeing an increase in the prices of land building materials and labor. It is currently one of the best positions in the market for buyers because of the low interest rates and still reasonable prices on land. Technically, it is still considered to be a sellers market since the inventory of homes, which used to determine which type of market it is, less than six months is considered a sellers market while over six is considered a buyers market. This means that if there is a significant percentage or all of the housing inventory that is for sale and has not sold for more than six months the industry considers that area to be in a buyers market.

Alaska Real Estate