This episode is a little different. No guest, just Lottie and me, going back and forth on everything we're seeing in the market right now, commercial and residential, in Alaska. We covered a lot of ground: why Sea Street is busier than either of us has ever seen it, what's really driving home prices, a rebate program most buyers don't know exists, and an idea I have that might ruffle a few feathers. Episode Breakdown: The Commercial Market on Sea Street Is as Busy as We've Ever Seen Lottie says the commercial market is as strong as she's seen it in years, with a lot of owners deciding to sell or downsize while values are high.It's not one-directional. A medical practice called her the same morning to say it's expanding its footprint by 50%, so brick and mortar is not disappearing, it's shifting.New brokerage franchises are also moving into the Anchorage market. Why We Think Everyone Is Going Back to the Office We both believe professionals, real estate agents, doctors, attorneys, accountants, are expected to show up and be taken seriously in their work, even if they take a day or two a week remotely.Lottie shared an embarrassing moment: she once took a work call from home with her puppy barking the entire time. Lesson learned: jot the idea down at 2 a.m., but take the call from the office. What's Really Driving Home Prices in Alaska Right Now Inventory has increased, but multiple offers are still common in the $400,000 to $800,000 range.Builders can't build for less than about $350 a square foot, which puts most new homes between $850,000 and $1.2 million.My advice for first-time buyers is: get on the ladder however you can. Even a 40 or 50 year old two bedroom condo for $200,000 counts. One young buyer I know skipped the single-family home and bought a duplex instead, living on one side while a tenant helped cover the mortgage. Why We Choose Local Businesses Over Amazon Lottie doesn't order from Amazon and explained why: local businesses like Home Depot, Office Depot, and Costco pay property tax, employ local managers, and reinvest in the community, even as franchises.Her point isn't political, it's practical: those dollars stay local and support the same neighborhoods we're trying to grow. Why Homeownership Still Builds Stronger Communities Than Renting We talked about the GI Bill after World War II, which gave veterans a path to homeownership and helped build generational wealth in a way renting never has for a tenant.Rental property ownership has also shifted. It's increasingly a REIT out of New York rather than a neighbor with a couple of fourplexes, and REIT-owned units tend to pass tax and utility increases straight through to tenants. The $10,000 Rebate Most Alaska Buyers Don't Know About The Alaska Housing Finance Corporation offers a $10,000 rebate to buyers of new construction homes that meet a 5-Star Plus energy rating, at any price point.I think it's the best homeownership program to come out in the last couple of years, since the cost to a builder to qualify is mainly a blower door test, nowhere near $10,000. My Idea to Turn Empty Neighborhood Parks into Affordable Housing Anchorage has more parks per capita than almost anywhere in the country, and a lot of them sit empty because families don't feel safe letting kids play unsupervised.My pitch: some of these parks already have road, water, sewer, gas, and electric access. A smaller footprint, designed around a shared green space families can see from their windows, could add real affordable housing without losing the park entirely.Lottie pushed back, and fairly: this would likely affect lower-income neighborhoods that need their parks the most. We didn't fully resolve it on air, but it's a conversation worth having. What to Expect for the Rest of 2026 I expect the residential market to stay flat through the rest of the year, with more inventory coming in over the summer but buyers staying cautious at 6.25% to 6.5% mortgage rates.Lottie remains bullish on commercials, expecting the strong pace on Sea Street to continue with solid financing still available. "The biggest mistake you can make is not to buy." — Connie Yoshimura Resources Alaska Housing Finance Corporation, New Home Construction Rebate: ahfc.us/buyBerkshire Hathaway HomeServices Alaska Realty: bhhsalaska.com If you have questions or just want to chat, feel free to email us at podcast@bhhsalaska.com Connie Yoshimura number: 907-229-2703 Lottie Michael number: 907-242-7603 Credits ©2025 Alaska Real Estate. All rights reserved.
