The success of the Kenai real estate market and Soldotna real estate market played a huge part in the return of economic gains throughout Alaska. In recent years, the Alaska real estate market took a turn for the worst, but it is quickly gaining ground and getting back on track. 2013 was a great year for many cites in Alaska that saw an increase in sales and purchases of real estate. Two of the prominent cities in Alaska, Kenai and Soldotna saw the real estate market grow exponentially.
Soldotna Real Estate Market Increase
The sale of single family owns has increased by nearly 12 percent in the past year. This increase in sold homes has also coincided with an increase of sale prices. The prices of homes sold have also risen by 5 percent throughout the year of 2013. The forecasted Kenai Real Estate market for 2014 is only supposed to continue to rise. Although the Soldotna real estate market will remain steady, it is not expected to be as profitable as the real estate market in other Alaskan cities.
What Setbacks Could Potentially Arise
The only thing that could hinder the Alaska real estate market for the upcoming year is government spending. There are government based spending cuts that are taking place throughout Alaska, which might have an effect on the number of building construction projects that take place. However, this will only result in the Alaska real estate market becoming more of a sellers market, which is preferred by many.
Lenders Guidelines Will Also Tighten
Another variable that will have a big impact on the Soldotna real estate market, is the tightening of mortgage qualifications that will be taking place throughout Alaska. Lenders will now be requiring prospective home buyers to offer more detailed proof of income. This means that loan approval rates may go down, which can have a drastic effect on the real estate market. Another thing to be knowledgeable of is that lenders will have to be more up front with fees and interest rates. This is good for borrowers, but it might keep some individuals from seeking financing.
The Real Estate Outlook of Alaska Should Continue to Improve
Even with new lending restrictions and government spending cutbacks, the real estate market throughout Alaska should continue to see growth in both sales of homes and the selling prices of those listings.