Though physically far from the mainland U.S., the Anchorage real estate market is not far enough to be immune from the ill effects of the U.S. housing market's burst bubble and ensuing recession. Recent months have found an increased inventory and more homeowners finding themselves underwater on their homes, as well as falling prices, though the market has not been plundered as many in the mainland have.
According to local realtor Cecelia Nims, in October, there were 930 homes for sale in Anchorage, which is a lower inventory than was seen over the summer, when those numbers were higher by a couple hundred. Houses are now spending an average of 87 days listed before selling, though the time tends to be longer for higher-priced homes and less for more moderately priced houses. The current average sales price in Anchorage is $297,400, down 3.91% for the year, and down around 11% from highs experienced during the 2004-05 era.
Fellow Anchorage realtor Pauline Hofseth reports on the average time for homes on the market. Homes in the $180,000 to $225,000 are currently running at about a three months' supply, while homes in the $225,000 to $300,000 are running four months' supply and represent 26% of the community's market. The $300,000 to $350,000 range homes have about 4.5 months' inventory and make up 15% of the market. The highest value homes, those in the $400,000 to $750,000 range, however, represent 40% of the current inventory, and are generally taking between seven and 11 months to sell. Real estate in Anchorage even higher than $750,000 can take anywhere from one to three years to sell.
The condo market is active as well, with a three- to four-month supply in the $130,000 to $200,000 range, and a nine-month supply in the $200,000 and $225,000 range. Condos costing more than $225,000 are spending almost a year on the market or more, on average. The areas in Anchorage worst hit by the market decline, Ms. Hofseth reports, are Lake Otis southeast Anchorage, north Anchorage (Mt. View), Girdwood, and Chugiak/Peters Creek.