Navigate Alaska’s Challenging Housing Market

You want to buy a home, but it seems nothing is going your way. Mortgage interest rates remain higher, prices have been going up and inventory is down.  Here’s some perspective, and potential options available to home buyers.

Start with your Realtor

Hire a real estate agent you trust. Learn the market from them. Listen to their advice, especially about negotiating. Let them show you why things are looking up. 

Anchorage Board of Realtors 2025 Housing Forecast:

• We’re coming up on the peak months for new listings: May through August.

• More homes were sold in 2024 than in 2023.

• Since May 2024, more listings were on the market vs. the same months in 2023.

• Days on Market, the time it takes for a home to get an offer, have increased.

• This year will still be a “Seller’s Market” but it’s looking better for the buyer.

Rates

Accept that rates might be a bit higher than you like. With this in mind, a borrower should consider a streamline refinance. Loans through the Alaska Housing Finance Corporation, Veterans Affairs, Federal Housing Administration, United States Department of Agriculture and U.S. Department of Housing and Urban Affairs, come with lower cost, streamline refinances built in. 

Benefits of streamline refinance:  

• Peace of mind. With a streamline refinance, you likely won’t be denied if your employment status changes. Remember, you do not need to provide income documents in most cases. 

• Lower closing costs save you money.

• Far less paperwork. Many do not require that you financially requalify meaning no pay stubs or bank statements needed.

• Many waive the need for an appraisal.

• Any loan closed with Residential Mortgage in 2025, comes with our Golden Ticket Certificate, which will save you $1,000 if you refinance with us.

Get prequalified

Come and talk with us. Or, simply get started with our online loan application. We are happy to explain different loan products and options. Once you’ve completed your loan application, and we’ve reviewed your financials, you will know how much you can comfortably afford to spend.

Benefits to being prequalified: 

• You’re ready to jump. The peak listing months are just ahead of us!

• Is your equity tied up in your old house? Consider a HELOC from Northrim Bank for use for down payment. This way you will be ready, and won’t need to make a contingent offer.

• Ask us about re-casting, the ability to re-amortize your new mortgage. For example, sell your old house and use that equity to lower the mortgage debt while simultaneously lowering your monthly payment.

• A loan application does not expire, per se. Bank statements and pay stubs need to be updated and credit reports expire after four months but these are quick/simple fixes. The important thing is that you are ready to make an offer when you spot a listing you love. 

Can’t find it, build it

If all you are comparing is the price per square foot then a new construction home will cost more than a used one. But think of the problems that a new construction home solves:

• Inventory. If you can’t find what you want, schedule a meeting with a homebuilder. Let them show you what they can do for you.

• You control the design and floor plan. 

• The likely higher upfront costs should bring you years without the need for expensive repairs/remodeling.

• Higher energy efficiency means you spend less on utilities.

• AHFC $10,000 rebate. The Alaska Housing Finance Corporation will pay a $10,000 rebate on a Five Star+ energy rated new home, for foundations poured after Jan. 2, 2025.

• With new construction, you can often time the sale of your old house to coincide with the completion of your new one. You will have time to prepare your old house for sale, which helps maximize your profit. Builders are typically very willing to work with a buyer who needs to sell their old house in order to afford the new one.

This is not a commitment to make a loan. Some loan programs are not available to all borrowers. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on the applicant’s eligibility and market conditions.

Richard Mantyla, NMLS 196418

Erich Heinrich, NMLS 1024760