The largest city in Alaska, Anchorage, has arguably been hit harder by the recession than communities in the Interior like Fairbanks and North Pole but there is relief on the horizon for them, too. Their economic forecast shows job growth by the end of next year and is expected to continue. The metrics that lead to that conclusion are good news for all of Alaska.
There is no denying that we are an oil state. The legislature has struggled with the budget for the last few years as oil revenue has dropped and it has affected the state’s credit rating. The forecast shows that the price of oil is going to continue to rise for the next few years which should pour tax money back into the legislature and allow them to fund more construction projects and up their spending on the University of Alaska which has its headquarters in Fairbanks.
With the military expansion in the Interior and the state doing better overall it looks like home buyers and sellers can expect many years of a strong local economy. The local real estate market should have a great foundation for many years to come and I expect steady growth in terms of units of construction and prices to continue to slowly rise. Home buyers should feel confident shopping and purchasing knowing that their investment will be secure and will continue to appreciate in the future. Interest rates have begun to creep up and right now is the perfect time to lock in a purchase. Lock in low rates and watch your home value increase – it is the best of both worlds.
If you have more questions and are considering home shopping in Fairbanks or North Pole call Empire Realty today at 907-374-4663. We have the best real estate professionals in the business standing by to assist.