Home prices are anything but cool in and around Anchorage, Alaska where Realtors report a brisk sellers' market, quick resales for older homes and a demand for new home construction.

"Anchorage is currently experiencing a "Seller's" market with well-kept homes, priced reasonably, selling quickly," says Realtor Pauline Hofseth. "Low interest rates continue to drive this market.

"In great demand is existing single family homes or zero-lot line homes selling in the first-time home buyer's price range below $132,500," explains Hofseth. "There is also a good demand for homes priced below $200,000 and again between $200,000 and $250,000. And, surprisingly enough, there is a reasonable demand for homes up to $400,000."

In spite of low supply and low interest rates, buyers are not in a rush.

"Buyers are doing their homework and purchasing reasonable homes at the best prices they can negotiate," observes Hofseth. In the $175,000 up category, buyers are selective and are not willing to pay too much.

In the Anchorage suburb of Eagle River, Realtor Eva Loken reports, "We are seeing a very low inventory while waiting for new construction to come on line. Finding a home under $ 200,000 is a challenge. Most new homes under $ 200,000 are found in attached duplex-style homes, some as condominium ownership, and straight condominium- town house styles. Four condominium communities are under construction in the area and selling fast."

Brisk sales extend to rural areas such as the Mat-su Valley, where new home sales are gaining over existing homes.

"In the first three months of this year there were 65 new home sales closed," report Realtors Ray and Nancy Woods. "In the same period last year there were 49. That's a 32 percent increase over last year. Existing home sales for the same period slowed down this year. We had 110 sales of new homes in 2001 and just 89 existing homes in the first quarter of this year, a 20 percent drop."

Sales prices are increasing for both new and existing homes. "Again, compared to 1st quarter last year, new homes sold for 14% more than last year," say the Woods. "Existing home sales averaged 8 percent over last year in the same period. The average new home sold for $168,500 and the average existing home sold for $142,600."

Why the drive to more rural, highway-accessible areas? "A lot of the buyers for these homes are folks that would have purchased a home in Anchorage were it not for the fact that prices there are significantly higher than in the Valley," explain the Woods.

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Published: May 6, 2002

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