In most major real estate markets of Alaska, it is considered a seller’s market. Does this mean that buyers should sit quietly in a room and not contemplate the thought of purchasing a home in Alaska due to fear of over-paying, competition or frustration? Not at all! Today we will discuss this very issue.
Typically speaking, the busiest times of the year for real estate transactions tend to be February through August, peaking sometime in March, with intermittent bursts thrown in there. There are many different factors that make this so.
Firstly, financial decisions play a huge role in the real estate process. This includes taxes. Whether homebuyers could not qualify the prior year, or were waiting until they could file another year of taxes, this coincides very closely with the timing of taxes.
Secondly, as a collective, we Alaskans tend to not want to move in the winter months. March (unless we have a crazy year like this one) is our break up where winter slows down and gives way to seeing the ground again.
Lastly, home owners looking to sell their houses don’t get as good of marketing in the winter months (so they think) due to snowy yards, deferred maintenance that cannot be done and a general lack of wanting to move in the cold and snow!
Now then, why is it a seller’s market out there? As we move from winter into summer (talking about Alaska here) sellers are more inclined to list their homes. In the early months of the transition, spring, there is a shortage of inventory from the winter months. At this point, buyers will be out in full force with our inventory just starting to pick back up.
This basic demonstration of supply and demand leaves the power in the hands of the seller. However, as we go later into the summer months, inventory of homes for sale are high once again, generally making a surplus and creating a buyer’s market again.
Does this mean you should wait as a buyer? Absolutely not. Unless you’re an investor, you’re looking for that one house. That one house can and will pop up at any time. Also, if you have a solid Realtor working for you, you should be able to snag about any property you want (as long as you’re qualified). Your agent (licensee) should have plenty of tricks up their sleeves for solid verbiage of your contract to secure the home you want.
Think of it like this. If you realize that you need to get on a solid workout regiment to help reduce the risk of heart disease, you should start today, even if it is the dead of winter. Sure you could wait until summer, and that might help. But, if there is a big need to get healthy, you should start today. If you have a big need for something, start working towards it today!