With the year rolling along, it’s a good time to look at some potential market changes that could affect us here in the Mat-Su Valley. The real estate market, much like Alaska’s weather, can change unexpectedly—and sometimes without warning. Here’s what to keep an eye on if you’re thinking about buying or selling in the months ahead.
Interest Rates: Waiting for the Rollercoaster to Slow Down
Interest rates have been on a rollercoaster lately, and there’s no telling when they’ll settle. We’ve seen fluctuations that make it tough to plan long-term. Some experts are hopeful rates will dip back down, potentially into the high 4% range by early 2025. But lower rates might not necessarily mean lower prices. Instead, it could actually increase demand, as more buyers try to jump in while rates are low, which could drive prices up. So, if you’re planning to buy or sell, keep an eye on these rates—they could play a big role in the market’s next shift.
Inventory Levels: Will There Be Enough Homes to Go Around?
We’re currently seeing a bit of a squeeze on inventory. In a recent week, 33 new homes came on the market, but 50 went under contract, shrinking the available options for buyers. This limited supply can push prices up, especially if buyers feel they need to act fast. If you’re considering selling, this could mean it’s a good time to get your home listed, as buyers are still out there, and competition is low.
Days on Market and Pricing Strategy
Days on Market (DOM) has been ticking upward recently, but it’s often due to homes being priced too high rather than buyers losing interest. Winter months bring a seasonal shift, with fewer homes on the market, which can be a positive for sellers. While there may be fewer buyers in winter, the ratio of buyers to sellers actually works in a seller’s favor, as there’s less competition. For homes that are priced right, the winter season can mean quicker sales to serious buyers who are actively searching, even with colder temperatures and shorter days.
If your home has been sitting for a while without much action, it might be worth revisiting that listing price. Buyers today are sharp and actively looking for homes that are well-priced from the start, and as long as inventory remains tight, priced-right listings have a better chance of moving—even through winter’s chill.
What Does This Mean for You?
The real estate market is always in flux, and while some changes are predictable, others can take us by surprise. If you’re a buyer, stay connected with listings to move fast on the right property. And if you’re a seller, remember that pricing realistically can help you avoid that dreaded “shelf-worn” effect.
The best strategy? Keep an eye on the trends, stay adaptable, and remember: no one controls the market. At Valley Market Real Estate, we’re here to help you navigate each twist and turn, making sure you’re set for success—no matter where the market heads next.
