“The times they are a changing”….recently our brokerage has had not one, but two cash sales fall through while representing Buyers. While there were several reasons these two purchases did not “stick” they had one major factor in common. Uncertainty about the economy and the future of Anchorage and the state weighs heavily over consumers right now (in my professional opinion).
Not since 1983 have we had a really substantial downturn in the real estate market. As of the date of this writing, July 25th, 2019 the Governor and the legislature have yet to come to an agreement on the permanent fund dividend, the capital budget, the state finalized budget and the reverse sweep to keep many social service programs, scholarships and so on funded.
The only thing worse than bad news is no news and that feeling of uncertainty that makes you question any significant change you are contemplating making in your life. Once things are settled we can all make the best adjustments we can to weather the storm, whatever it may be. But uncertainty is not good for the economy, real estate, or our mental health. I am hopeful that the legislature and governor’s office can find a way forward to take advantage of the federal matching funds, make adjustments to the state budget that reflect our need to tighten up spending, and pay a permanent fund that will be seen as reasonable by the majority of most Alaskan’s.
Now I have only been here since 1971 but my experience is that when folks feel confident about what lies ahead for the state and that we are on solid ground in planning for the future they are more optimistic and willing to make major purchases and changes in their lives. I hope that we will all look back on the current special session with relief when our elected officials manage to find compromise and agreement on the way forward for our great state. One thing is for sure, things are going to wrap up soon one way or another.