So far, 2023 has been an extremely unique year in real estate.  We had a huge uptick in mortgage interest rates, over double from the lows we saw in 2020 and 2021.  With mortgage rates going over 7% this year, many assumed that home prices would suffer.  But because of the extremely low home inventory on the market, there is still a lot of competition for homes and we have not seen large price adjustments that are common in a higher interest rate environments. Many home owners are simply not putting their home up for sale because they are locked into 3%+- interest rates and do not want to give that up for a rate in the 7% range.  Yes, homes are often taking longer to sell and we are generally not seeing multiple, way over asking price offers that we were experiencing since the pandemic.  And we are starting to see some price reductions, but generally speaking, it is still a sellers market, even with the higher interest rates we are seeing.  Because of the low inventory we have experience all year, our local real estate market sales volume is off about 28% YTD from the same period in 2022.

The Alcan Highway, also known as the Alaska Highway, is a legendary road trip that stretches 1,387 miles from Dawson Creek, British Columbia, Canada, to Delta Junction, Alaska, in the United States. The route offers stunning views of the Canadian and Alaskan wilderness, diverse wildlife, and historical sites.

Starting from Seattle, the route typically heads north through Washington State before crossing the border into British Columbia, Canada. Vancouver is a popular first stop, offering a cosmopolitan city experience with its scenic beauty and diverse cultural attractions.

As the journey continues through British Columbia, the route passes through several charming towns such as Squamish and Whistler before reaching the town of Cache Creek where the Alcan Highway begins.

The Alcan Highway itself is a rugged and remote road that passes through some of the most stunning and isolated wilderness in North America. Along the way, travelers can stop at several towns and historical sites such as Fort Nelson, Watson Lake, and the Sign Post Forest - a quirky attraction where visitors can add their own sign to the thousands already on display.

One notable stop along the highway is Muncho Lake Provincial Park, a stunning natural oasis with crystal clear water and abundant wildlife. The park offers hiking trails, fishing opportunities, and breathtaking views.

Another must-see attraction is Liard River Hot Springs Provincial Park, home to natural hot springs that are open year-round. The park offers a relaxing break from the rugged terrain of the highway, with opportunities to soak in the natural hot springs and take in the stunning wilderness surroundings.

As the highway reaches the Alaskan border, travelers will be greeted by stunning views of the Alaska Range, home to Denali National Park and Mount McKinley, the highest peak in North America. The highway passes through several small towns in Alaska, such as Tok and Delta Junction, before ending in Fairbanks, a vibrant city known for its gold rush history, northern lights viewing, and outdoor adventures.

While the Alcan Highway is a scenic and adventurous road trip, it can also be challenging and unpredictable, especially during the winter months when the road can be icy and snow-covered. Travelers should be prepared for long stretches of driving with few amenities, including gas stations, restaurants, and lodging options. It is recommended to have a reliable vehicle, spare tire, extra fuel, and emergency supplies, such as food, water, and warm clothing. It is also important to check the road and weather conditions before setting out on the journey.

Alaska is known for its long and frigid winters, so selecting the right heating system is crucial to keep residential properties warm and comfortable. Here are some of the most common types of heating systems available for residential properties in Fairbanks, Alaska, along with additional details:

1 Forced-air heating: This type of heating system uses a furnace to heat air that is then circulated throughout the home via ductwork. Forced-air heating systems can be fueled by natural gas, propane, oil, or electricity. These systems are popular due to their ability to quickly heat the home, but they can be less energy-efficient than other heating systems.

2 Radiant heating: This type of heating system involves heating the floor, walls, or ceilings to radiate heat throughout the room. Radiant heating systems can be fueled by natural gas, propane, oil, or electricity. These systems can provide comfortable and even heat throughout the home, but can be more expensive to install than other heating systems.

3 Baseboard heating: This type of heating system uses electric baseboard heaters to heat the room. Baseboard heating is relatively easy to install and maintain, but can be more expensive to operate than other types of heating systems. This system can be ideal for small rooms, but may not be as effective for larger spaces.

4 Boiler heating: This type of heating system uses a boiler to heat water or steam, which is then circulated throughout the home via pipes. Boiler heating systems can be fueled by natural gas, propane, oil, or electricity. These systems can be highly efficient and provide consistent heat, but can be more expensive to install than other heating systems.

5 Heat pumps: This type of heating system works by transferring heat from the outside air into the home. Heat pumps can be an efficient and cost-effective way to heat homes in moderate climates, but may be less effective in extremely cold temperatures. However, modern heat pumps have been developed to work in colder climates.

6 Wood-burning stoves or fireplaces: This type of heating system uses wood as fuel to heat the home. Wood-burning stoves or fireplaces can be a cost-effective option, but require regular maintenance and may not be suitable for all homes. These systems can provide a cozy and warm atmosphere, but they also require a consistent supply of wood and adequate ventilation to ensure safety.

When selecting a heating system for a residential property in Fairbanks, Alaska, homeowners should consider factors such as energy efficiency, cost, ease of maintenance, and the climate in the area. Homeowners can consult with a heating professional to determine the best heating system for their particular home and needs.

Staging a home for sale involves preparing a property to make it more appealing to potential buyers. This process typically involves several steps to make the home more visually appealing, remove clutter and personal items, highlight key features, and create a welcoming atmosphere.

One of the first steps in staging a home for sale is to declutter and clean the space. This involves removing personal items and clutter, as well as making sure that the home is clean and tidy. This step can make a big difference in how buyers perceive the property and can help them envision themselves living in the space.

Another important aspect of staging a home for sale is depersonalizing the space. This means removing items that reflect the current owners' personalities, such as family photos, artwork, or personal memorabilia. By creating a neutral and uncluttered environment, potential buyers can focus on the features of the home itself, rather than being distracted by personal items.

In addition to removing clutter and personal items, staging a home for sale also involves repairing and updating the property. This can include fixing any obvious damage such as chipped paint or loose door handles, as well as updating outdated fixtures or appliances. By making these updates, the home can look more modern and attractive, which can help to increase its appeal to potential buyers.

Creating a welcoming atmosphere is also an essential aspect of staging a home for sale. This can involve adding soft lighting, fresh flowers, and comfortable furniture to the space. Neutral colors and natural light can also help to create a spacious and inviting environment that potential buyers will find appealing.

Another key aspect of staging a home for sale is highlighting its best features. This can include features such as an impressive fireplace, a large backyard, or a spacious kitchen. By showcasing these features, potential buyers can see the value of the property and may be more likely to make an offer.

Curb appeal is also an important consideration when staging a home for sale. This involves making sure that the exterior of the home is well-maintained, including the landscaping, entryway, and other outdoor features. A well-manicured lawn, trimmed shrubs, and freshly painted front door can all make a big impact and help to make the property more attractive to potential buyers.

Finally, it is often helpful to hire a professional stager to assist with the process of staging a home for sale. A professional stager can provide expert advice on furniture placement, decor, and other elements that can help to make the home more appealing to potential buyers.

Overall, staging a home for sale involves several important steps to make the property more visually appealing, remove personal items and clutter, highlight key features, and create a welcoming atmosphere. By following these best practices, sellers can increase the appeal of their home to potential buyers and sell it faster.

The Fairbanks North Star Borough has some unique Real Estate Challenges, and it is our job to help you avoid these problems. Below is a list of conditions that you should be aware of if you are considering a home purchase.

Construction Quality is a major factor: Many homes were built in the late seventies and early eighties during the Alaska Oil Pipeline Boom, and many of these homes were inadequately built compared to today's building techniques. Aging homes built with All Weather Wood foundations are of particular concern, and these foundations have started failing. Additionally, we regularly find homes inaccurately advertised and listed as having a concrete foundation, when it is actually sitting on top of an aging All Weather Wood Foundation. When in doubt, check the foundation. Some structures in our area have been constructed or remodeled without regard to building code, haven't been inspected by an engineer, and there may be serious structural defects that are not readily apparent. Things to look for during a home inspection include: electrical problems, poor drainage, mold, carpenter ant damage, missing/damaged/inadequate vapor barrier, poor roof ventilation, failing foundations, deficient heating and plumbing systems, leaky roofs, dry rot, and deficient design. When in doubt, get a home inspection from a Professional Engineer.

Be Aware of Permafrost: Some areas within the Fairbanks and North Pole have permanently frozen soil or ice lenses in the ground. If the land is cleared, or improper building techniques are employed, the ground can melt and cause catastrophic results. Soil suitability can be determined by a professional, and common practice is to have the ground drilled to test for existence of permafrost.

Well Water Quality: If the home is serviced by a private well, the condition of the well and water quality can deteriorate over time. It is important to not only test the quality of the water, but to also check the well flow to ensure the well can provide adequate water volume for your household demands. Contaminants that should be tested for include; sulfolane, arsenic, heavy metals, nitrates, and bacterial growth.

Septic Systems: If public wastewater removal is not available, sewage and wastewater can be discharged into a septic system. If the system does not conform to Alaska Department of Environmental Conservation standards, the septic system may need to be replaced or require a waiver from ADEC. When in doubt, get a septic test to verify the function and design of the system.

Buried Fuel Tanks: Home heating oil is frequently stored in buried fuel tanks. Current regulations on residential tanks are minimal, however the resulting contamination from a failed fuel tank is subject to regulation. The property owner may be responsible for contamination clean up and remediation expenses. Considering that most fuel tanks are metal and subject to corrosion, it is important to verify the integrity of an aging fuel tank.

Radon Gas: Radon is a Radioactive Gas and known carcinogen that naturally occurs in certain environments. The EPA recommends action be taken if Radon levels are 4 pCi/L or greater. Fortunately the test is simple, and radon can be mitigated with professional help.

The items listed above are important factors to consider when purchasing a home. Our goal is to help you avoid these problems, and many others during the purchasing process. The expert Realtors at Hedgecock Group Real Estate are skilled at navigating our clients around the hazards found in the Fairbanks and North Pole Real Estate Market. Please reach out to us any time. 

We are here to help!

Image courtesy of Smithsonian Environmental Research Center. http://forces.si.edu/soils/02_06_02.html

The Fairbanks and North Pole Real Estate market is extremely dynamic.

Due to the cyclical nature of when people move to and from our market, the vast majority of homes are purchased and sold between March and July. This is due to many factors, including the school year, military relocation schedules, and that moving in the winter is not an enjoyable prospect. Because of the frenzied pace of our market, and that great homes usually receive multiple offers, it is imperative to be prepared financially to make a strong offer on a home when a great home hits the market. Finding a Realtor that understands the negotiation techniques to give you a competetive advantage is essential to success. Once you have found an expert Realtor, you must secure financing, and set aside earnest money for your purchase. I have unfortunately seen too many buyers lose the home of their dreams because they delayed applying for a loan, because they wanted to find the right home before getting pre approved by a lender. I have also witnessed buyers lose the home of their dreams because they didn’t have adequate earnest money to accompany their offer. In the Fairbanks and North Pole markets, customary earnest money is two percent of purchase price. You can get by with less, however it doesn’t make the purchase agreement as appealing to the seller. You must also understand that the highest priced offer is not necessarily the strongest offer. Purchase price is an important aspect, but not necessarily the most important. I have seen many sellers take a lower priced offer in a competing offer situation because the lower priced offer was cash, had a larger amount of earnest money, removed inspection or appraisal contingencies, or didn’t ask for buyer closing costs to be paid for by the seller. This seems extremely complex, however your expert Realtor at Hedgecock Group Real Estate can guide you to success if you allow them. 

If you are considering buying in 2018, it is essential that you begin preparing yourself financially in order to compete and win the home of your dreams.

Real Estate Investment Opportunities are coming available every week in the Fairbanks and North Pole markets, and our site is a great place to begin your search.  REO Properties, also known as "Foreclosures," can be a fantastic way to purchase a property well below market value. Our Realtors are extremely experienced in finding and negotiating the best deal possible, and what costs to consider if renovation is necessary. Our Experienced Lenders have helped many buyers before you purchase these properties with as little as 5% cash down through the AHFC Renovation loan program.  If this is something that you are interested in, contact us today for a free consultation, and we will put together your custom plan for success!

Airmen and Soldiers, 

Welcome to Interior Alaska. This link will take you to the Eielson Air Force Base Home Page.  This is a great resource if you are in the Military and are Relocating to the Fairbanks or North Pole area. Please reach out to us prior to your arrival so we can assist you with the relocation, and make a success plan for your new home search!

http://www.eielson.af.mil

Are you moving to or from Alaska?  

If you are driving or taking the ferry, we recommend purchasing a copy of the Alaska Milepost. The Milepost is a fantastic trip planner and travel guide, and will be a valuable tool on your international relocation.  Included in the Milepost are road maps of Alaska and Canada, hotels & lodging information, services information, and tourist attractions along the route. For more information, see the website and video below.

http://www.themilepost.com

Did you just get orders to Alaska?  

If so, congratulations!  You are about to embark on an unforgettable journey.  From the trip up to seeing your first moose, your assignment in Alaska will provide you with one unique experience after another.  Things up here are very different than anything you've seen in the lower 48 and without a doubt, you have a lot of questions.  PCS'ing is stressful, regardless of where you are going.  PCS'ing to Alaska brings a new level of stress many military families have never experienced.

At Hedgecock Group Real Estate can relate.  Brett Evens is a former Army Aviator, JT Morgan retired as a First Sergeant after almost 22 years of service, and Tim Clark is a former Artillery Officer and Commander.  We've all PCS'd and we are all intimately familiar with what you are facing.  We are also Real Estate Professionals here in Fairbanks and North Pole and we can provide a level of service you won't find anywhere else.  

Get in touch with us before you depart your current duty station and we can advise you on the trip, the community, or what to do on the weekends.  We can help you buy your home and have it ready to move into as soon as you drive into town or we can set things up for you to act quickly in this dynamic market once you arrive.  Along with having PCS’d to and from Alaska, our team has helped numerous other military families with the entire experience – from the initial move to selling your home as you prepare to move on to your next duty station.

We can't wait to hear from you!