Anchorage Condominium Market Update
2018 is sure to be a fantastic year for the Anchorage Real Estate Market. With the country’s strong economy elevating property values across the lower 48 and lowering unemployment rates it is hard not to be encouraged about the prospects ahead of us. The Anchorage market, in particular, has not dropped off by any means, despite a temporary reduction in employment across our state. Statewide, we have seen great news lately regarding oil field discoveries, the possibility of natural gas exportation, urban development, and upcoming new residential construction.
Despite the positive feeling around our state’s future economic health, the local condominium market has hit a slight standstill. The following statistics compare the last 6 months year over year.
–Year to Date Average Sales Price is down: $208,000 vs. $214,000
-Year to Date Sold Properties have a longer Average-Days-On-Market: 69 vs. 65
-Year to Date List to Sale Price Ratio is down: 98.4% vs. 98.6%
-Year to Date Closings are down: 373 vs. 420.
As reflected in the current rental unit price decrease, these homes tend to be listed at prices from years past, as sellers are unwilling to realize the shifting market. This can be mainly attributed to prices remaining flat on single-family homes in the same market.
Renters are more likely to stay put as their monthly payment may be equal to or less than a comparable payment on the typical 30-year mortgage, especially when considering the interest rates currently rising. A simple 1% increase can affect the average buyer by $10,000 in regard to the loan amount they qualify for. This can have a huge impact on the typically lower priced condominium market. As these realizations begin to take hold on Condominium Sellers we can expect to see lower prices as the market becomes more competitive with a smaller buyers pool.
If you have any questions or would like more information about the Real Estate Market, please visit TeamDimmick.com or call us at 907-865-6524.