December Market Report for Anchorage

Sean Williams

Anchorage Market Report

December 2024

Happy Solstice / Christmas / Hanukkah / Etc / End of 2024!!!

Here are the top things to know about the Anchorage real estate market right now (statistics from November, the most recent complete month): 

Inventory is Still Low, but Higher than Last Year

Inventory is still the controlling factor in Anchorage real estate - and that means it’s still a moderate seller’s market, and should stay that way. Existing Inventory, New Listings, and Sold Listings were all up slightly in November 2024 vs November 2023, continuing a slow and steady return to some kind of normal real estate market, which we haven’t seen since 2019. The sale-to-list ratio (how close the actual sale price was to the original list price) is still around 100%, as it has been since 2020. To capitalize on your investment, you want to work with a real estate expert who understands how to strategically price and market your home so you get maximum return. Pricing is even more important nowadays, when buyers will wait for a price drop, rather than starting negotiations by offering low, as they did in years past. Don’t wing it - work with an expert who has training held by less than 1% of Realtors nationwide.

Median Sale Price Is Rising Steadily

When correctly priced and positioned well on the market, some homes are selling at or above list price—sometimes in only a few days on market (although the typical marketing time is now around a month in Anchorage and two months in the Valley). Median sale price has climbed 5.1% since November 2023, to $420,500. Median days on market is down a bit, to 26.7 - very low by historical standards. Most veteran home sellers will remember times when three months on the market was a reasonable expectation, even for an attractive home. Today’s faster-paced market indicates that buyers are making moves on attractive houses in this low-inventory environment, even before interest rates find a new comfortable low. These stats really add up when you are selling your largest financial asset–and that’s exactly why you deserve a strategic marketing plan.

We Continue to See Homes Sell With Multiple Offers

Nowadays, it’s not all homes - it’s those with the right strategic plan, pricing, and positioning for your property and your goals that sell for their list price or higher. With these in place, we can attract maximum offers and get your home sold for the highest possible price in the fewest days on market. 

As a homeowner, what does this mean for you?

If you’re thinking about selling in the next 12 months, now is the time to start preparing for the market.

When I work with my clients, I provide step-by-step guidance throughout the entire process. I understand you have roles and responsibilities to manage, so you can leave the “heavy lifting” to me. Through my systematic process, we'll get your home prepared and listed, where I'll use targeted marketing to attract a pool of high-quality buyers.

My commitment to excellence, consistent communication, strategic negotiations, and unique positioning for luxury properties are just a few reasons why my clients have trusted me with what is (for most) their largest asset. My process works, and I make it a seamless, simple experience for you.

If you are thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation → 907-795-3577

We will cover your goals and my unique approach to getting you the highest possible price in the fewest days on market.

Call Today → 907-795-3577

AND… I’ve invested in some incredible new software that provides homeowners with an impressively reliable Home Value Estimate, instantly, using multiple AVMs (Automated Valuation Models) not available to the public. It’s a great place to start: FIND YOUR HOME VALUE HERE.

Sean Williams

The Prince Group

eXp Luxury

www.theprincegroup.com
[email protected]

907.795.3577

Anchorage Market Highlights

Source: Alaska MLS statistics for the months of November 2024 and November 2023

Looking Ahead 

Here’s what we’ll be watching over the coming months:

1. Low Supply of Available Homes 

Anchorage had exceptionally low inventory in November, but a smidge higher than November a year ago (when interest rate unpredictability was really stopping potential sellers in their tracks), and about the same as in 2022. Many sellers would like to move, but have lower interest rates than the 6-7% currently on offer - so they fear a higher monthly payment if they sell and buy again. Of course there’s more to it - prices will rise when interest rates drop, so the math may add up to move sooner, especially if you’re upgrading to a more expensive property or location. With inventory low and the median sale price increasing steadily year-on-year - 4.23% over 2023 in Anchorage, even with high interest rates, and 6.1% so far in 2024 - sellers who work with an expert to properly position themselves on the market can generally expect to secure a nice return.

2. Buyers Are Eagerly Searching

Buyers are eager to scoop up the available inventory. The time on market in October was a brisk 23.4 days, almost as short as in the 2020-22 era - a “balanced” market, by contract, with buyer demand equal to seller supply, raises time on the market to about 90 days. The “absorption rate”, or the time it would take to sell all homes on the market if no new supply became available, has plummeted to 1.75 months, and will continue to drop month-over-month as inventory decreases all winter. With inventory as low as it is, it’s a great time to sell - the competition is almost non-existent, and will remain so until April. It’s a common myth in Alaska that summer is the best time to sell - that’s what everyone else thinks, and that’s why we see a spike in inventory every spring. With five years of low supply, buyers are stacked up like planes waiting to land at SeaTac - they’ll move right up when they see the right house. Regardless of what twists and turns the market takes, to truly maximize your return on investment, it’s crucial that you strategically position your home to buyers and get it out in front of them.

3. Continued Demand In Anchorage

Anchorage has a long-term housing shortage, which will take years or decades, and major policy and economic changes, to resolve. For that reason alone, we will continue to see property values for existing homes increase. Here are just a few things to note:

• Anchorage is like a little San Francisco, effectively land-locked, surrounded by ocean, mountains, and military property.

• 100% of the population growth in metropolitan Anchorage is happening not in Anchorage, but in Palmer and Wasilla - so demand continues to outweigh supply even in the Valley, where there’s more space.

• Slow-changing municipality regulations in Anchorage, a persistent market preference for large lots and detached homes, and a risky labor and supplies market make it difficult for builders to invest in new construction, especially in urban neighborhoods. That means existing homes are at a premium.

• There’s more new construction in Palmer and Wasilla, but timelines are slow and unpredictable and prices are stratospherically high, compared to existing homes even a few years old. That means most buyers will gravitate towards existing homes even when new construction is happening.

4. What to Expect When Selling Your Home

The market consistently evolves–and you deserve to sell for the highest possible price no matter what. The right marketing strategy, pricing knowledge, and negotiating power are what make the difference when you’re ready to sell your home and embark on what may be one of the largest financial transactions of your lifetime. 

If you are thinking about selling your home in the next 12 months, call me today for your Strategic Marketing Consultation →907-795-3577

and use our new software to FIND YOUR HOME VALUE INSTANTLY, right now.