Anchorage Alaska Residential Real Estate Market Update for Third Quarter
by Dan Wolf
on Tuesday, October 9th, 2012 at 11:32am.
I have some very good news concerning real estate, specifically residential single family homes in the greater Anchorage area.
First, in the way of history, to set a perspective, real estate sales have been basically flat in volume between 2007 and 2010; Actually looking backwards at the numbers, it looks like 2009 was the bottom of the market as far as Anchorage goes because the number of sales were lower that year than they were in 2006, 2007 or 2008.
As of third quarter this year, Realtors have sold 150 more homes this year over the same period last year! That is a 10% increase in sales. That is major news! We haven't seen an increase in the number of sales in five years.
Average sales prices have been between $322,000 and $330,000 since 2006. Currently, the average sales price is sitting slightly better than $335,000, so up a percent or so. We'll see how the year finishes out, but this is all very positive news at this point!
This speaks to increased confidence in the market. Even thought Anchorage didn't have the same sort of real estate market as many "lower 48" cities or the same real estate experience, local buyers may have been exercising caution and "waiting for the other foot to drop!"
The interesting point is that the housing inventory is low, compared to last year. As of the third quarter of this year, there are fewer homes being offered for sale.
Basic financial laws of supply vs demand tell us that if housing inventory gets low, prices will begin to increase. I'd bet we'll be seeing builders begin to build "spec" homes again if this keeps up!
Keep watching here for real estate market updates; if you are wondering what your house will sell for now, contact us for a free Comparative Market Analysis to see how your house will compete with other homes on the market.