The new year is here! It’s time for a fresh start, new beginnings and perhaps, a new home! The real estate market is expected to grow stronger in the coming months, housing prices are expected to return to their “normal” range and at the same time, rising rents and mortgage rates are expected to increase.
So if you have yet to make your list of New Year’s Resolutions, here are four reasons why you might like to add buying a home in Alaska:
Mortgage rates are still low
Of course rates could creep up at any moment and they are projected to rise a full percentage point by the end of the year, but those for a 30-year-fixed-rate mortgage are still hovering around 4 percent. Buying a home early in the new year means you can take advantage of these historically low rates (Remember, rates were around 18 percent in the ’80s!) and secure a lower payment than you might even be paying for rent!
Rents are soaring
Did you know nearly all property managers raised their rent in the past 12 months? And if you’re a renter, another price hike in the new year should not be a surprise! Think of it this way— Would you rather put that money into your own home each month and build equity or hand it over to your landlord to never see it again? The price of rent is currently equivalent (or even higher!) to that of a mortgage payment and the smarter investment should be apparent.
Your down payment doesn’t have to break you
This is perceived as one of the biggest obstacles of buying a home, but many buyers in Alaska are not aware that they can purchase a home with as little as 3.5 to 5 percent down. Gone are the days of 20 percent down or no deal and you can take advantage of that! The Northern Edge Real Estate team can walk you through your options for purchasing your dream home this year!
Home prices are calming down
Home prices have been on the rise for years, but are now beginning to return to stable levels. What does that mean for you as an Alaskan homebuyer? It means a level playing field that allows for more buyers to enter the market and in some cases, better negotiate with sellers.
2016 could be your year to become a homeowner in Alaska and we are here to help you make that happen! Do not hesitate to reach out with any questions you have about buying a home or available properties in Anchorage, Eagle River, Wasilla and the surrounding areas.
We wish you a happy and safe new year!