Anchorage, Alaska is a city set within hundreds of acres of parkland, one of many reasons why the area is in its current seller's market, says a local Realtor.

"The municipality of Anchorage starts around Portage Glacier, about 10 miles south of Girdwood and extends north about 10 miles north of Peters Creek," says Realtor Pauline Hofseth.

"Anchorage's housing market continues as a "seller's" market with well-kept homes and condos, reasonably priced, selling quickly," she explains. As June fades into July and August, the number of residential homes (single family and zero lot lines) currently on the market have increased approximately 25 percent, from about 420 the first of June to about 440 in July. Because of the large number of buyers shopping in the market, homes in good condition and well-priced are still selling first -- sometimes within the first week.

Hofseth suggests, "Many properties under $150,000 have competing offers with sellers able to choose the offer with the highest net to them. Low interest rates and job stability continue to strongly drive this market. In great demand are existing single family homes or zero-lot line homes selling in the first-time home buyer's price range below $132,500.

"Condos under construction are springing up all over Anchorage and Eagle River," says Hofseth. "These condos have 2-3 bedrooms, 1.5-2 baths and 1-2 garages and appear as duplex-style units. There are about 10 builders who have jumped into this market offering numerous possibilities, locations, and price ranges."

She advises, "Buyers need to be careful when purchasing a condo to understand what they are buying and what, if anything, is included in the dues. Some condos are offering "water, sewer, garbage, snow removal, insurance and exterior maintenance." These dues are in the $150 to $200 range. Others, called "site" condos only offer "snow removal." On these condos, the buyer will be responsible for all exterior maintenance in the future."

As far as the single-family home market goes, Hofseth says well priced and well-kept homes up to $300,000 only remain 15-30 days. Ranch-style homes (all on one level) are another "hot" item. Be prepared to pay for them though. A small (800 s.f.) in excellent condition could cost up to $200 a square foot. One 1,200 s.f. could cost around $160 a square foot. These would be average type of homes with no special amenities -- new or 20+ years old. New 1,200 s.f. ranches on the south side of town are starting around $200,000.

"The demand for homes over $400,000 is slower, and agents banking on a continuing upward market are suggesting higher and higher prices," says Hofseth. "More price reductions are evident in this price range, and reductions are often significant. However, well-priced homes in good condition in all price ranges still sell first, and sometimes with multiple offers. With the flexibility of lower interest rates, buyers who have only been able to afford up to $250,000 in past years can now look at $400,000 homes. Generally speaking, these homes are 2,000-3,000 square foot homes with lots of amenities. For the upper end buyers, Goldenview, Prominence Point and Turnagain View Estates in Anchorage, as well as several subdivision in Eagle River are doing quite well because of the low interest rates. There is a new subdivision starting on the West end of town near Turnagain for these move-up buyers. Buyers in this price range are demanding quality and amenities over square footage. So sellers with homes over 4,500 s.f. are finding fewer and fewer buyers and are being forced with more concessions. Buyers, for the most part, are continuing to do their homework on the Internet and purchasing reasonable homes at the best prices they can negotiate. A growing number of buyers (over 50 percent) are doing their preliminary shopping on-line.

"The rush for multiplexes have slowed also though multiplexes are still popular," says Hofseth. "Alaska housing is a new source for financing properties 5 units and over. Eagle River continues to be popular for military buyers that overall costs have increased in Eagle River over Anchorage. For the first year in many, the price of an average Eagle River home is over $300,000, while the average Anchorage home is about $287,000. There is also a move to develop more housing resources in Chugiak and Peters Creek. For now, Anchorage buyers are on vacation. Children are out of school. Fishing season begins everywhere. Sellers who have waited until summer to sell generally find a smaller buyer pool. A few more housing choices, but the best homes reasonably priced still sell first."

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Published: July 10, 2003

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