Homes for Sale in Anchorage, Alaska Today will be Solid Investments for Tomorrow
by Dan Wolf
on Wednesday, February 20th, 2013 at 4:12pm.
According to a recent report by the Alaska Housing Finance Corporation, housing prices in Anchorage are on their way up...and up and up. This is great news for current home owners and insightful news for anyone who is in the market, or considering getting into the market, of buying a new home. Anyone who buys today will not only have a beautiful new place to call home but will also be sitting on a great investment property.
The Alaska Housing Finance Corporation’s report cites a study done last year by the McDowell Group saying that, over the next twenty years, there will no longer be enough property or land for the continually growing population of the Anchorage area. In the time-honored correlation of supply and demand, this means that property prices will increase as property supply decreases. That 2 bed, 2 bath, 1,337 sqft home that today is going for $155,000 could be selling for twice or three times as much five or ten years from now. Twenty years from now, that same property could be worth four or five times that.
This increase in price is consistent with recent trends in the Anchorage real estate market. Prices have been incrementally rising over the last couple of years, which is good news for buyers. Slow growth means that there is a wider range of homes available in each price bracket. This can open up a buyer’s options, as well as their negotiation room, giving them a better chance of finding the home they’re looking for.
At the moment, there is about two months worth of inventory on the Anchorage market. This means a decent selection for buyers who are looking now. It’s likely that as prices continue to rise, that inventory will grow. Buyers will want to be sure to get in the market before housing prices get too high, though. Buying while prices are still low, comparatively, will ensure that the new home is also a solid investment property.