Anchorage Real Estate: Navigating Market Trends and Emerging Opportunities

anchorage real estate

NAVIGATING MARKET TRENDS AND EMERGING OPPORTUNTIES

The residential market as a whole has been dealing with low inventory and still higher interest rates. Currently, in Anchorage, we have 20% less active inventory on the market, moreover, we have seen 43% fewer sales year to date than last year. For new homes that hit the market that are updated, in good condition, priced correctly, and marketed well, we are getting back into the multiple offer scenarios. Because of the lack of inventory, sellers aren't paying much in concessions. We are also starting to see many off-market deals, with buyers hoping to find something without having to compete.

Interest rates are also affecting the industry as well. The time of the 2%–4% rates is long gone, and we don't expect that to come back anytime soon. We have been floating between 6% to 8% for the past several months. The Fed has been committed to reducing rates incrementally throughout this year, with the first being this March. However, they postponed that first cut due to the national inflation numbers and decided to push that off to quarter two.

Many buyers have been waiting for a year or two to buy, with the current rates being a stark contrast to the low rates we saw a couple of years ago. Although rates are much higher, our appreciation for properties has also been increasing, and we haven't seen the price freeze many thought would happen. Many buyers are getting back into the market knowing that they can refinance in the future when rates drop again, but they are taking advantage of today's prices as our local appreciation of home values continues to climb.

New developments are picking up steam across Anchorage, with a large investment in downtown Anchorage. The brand new Key Bank building in downtown, across the street from the Performing Arts Center, is just about complete. This redevelopment redefines our downtown skyline with state-of-the-art upgrades, a brand new facade, and room for both retail and office space. The office space has already been locked up by a large oil company, and the building should be fully occupied soon. In addition to that project, the downtown revitalization project is investing $70 million in the old Aviator Hotel. That project will include 250 hotel rooms, a brewery, a market, and condos. There are several other notable projects, but the $200 Million investment into the Block 49 project, which includes the old downtown theater site and converting that into a hotel, shopping, parking, and residential units, is one that we are most excited about. (see references below)

Anchorage has seen a lot of changes over the past several years, but I firmly believe that our best years are ahead of us. Whether you are looking to buy, sell, or conduct an exchange, there are always great opportunities to be found. With a specialty in luxury real estate and investment sales, we’d love to serve you.

Reference(s):
Crook, L. “Perkins & Will redesigns earthquake-damaged Alaska office to evoke glacier.”, Dezeen, 03 Feb. 2021
Scott, R. (2023 Dec 11) “Redeveloping Properties in Downtown Anchorage to Uplift the Neighborhood.”, Alaska Business, 11 Dec. 2023
Alaska Business (2022 May 18) Block 41 “Redevelopment to Mix Old and New Façades”

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Precision Real Estate is based in Anchorage, and provides real estate services throughout Alaska. We will keep you informed on current trends and market dynamics to help you make the best informed decision. If you are interested in purchasing a home, get in touch with our experienced real estate agents! Our team of experts will negotiate great deals for your home and help you navigate the buying or selling process every step of the way. If you are looking to get into a property that makes sense, or need help analyzing a potential property, click the link below to get started.