November Market Report for Anchorage

Anchorage Market Report

November 2024

Buy, Sell, or Hold? That's the question that many homeowners are scratching their heads about right now, here in Anchorage and all around the country. We all reach a point where a relocation out of the area, or to a larger or smaller home in a different neighborhood, is more suitable for your career or lifestyle. But of course, you’re busy doing all the things the world relies on you for, and you want a simple home-selling process that doesn’t interrupt your life but helps you maximize your sale price.

For most of us, our homes are the largest asset we’ll ever own—so you are right to want to understand this asset and the market you are in. As you consider selling or buying, you deserve the insight and guidance from an expert in your local market. Here are the top things to know about the Anchorage real estate market right now (statistics from October, the most recent complete month): 

Inventory is Still Down, Demand is Higher Than Supply - No Change Here!

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 as interest rates slowly drop and more buyers are priced back in. These interest rate drops are likely to lead to both a surge in buyer demand and a surge in sellers eager to list, either to capitalize on that demand or to benefit from the lower rate in their next purchase - so the surge in buyers and sellers could actually balance each other out in the next six months to one year. The sale-to-list ratio (how close the actual sale price was to the original list price) has been right around 100% since 2020, never below 97%. 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. 

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. That phenomenon is what drives prices up, as realtors and appraisers are able to find comparable sales that have crept up year-on-year. Median sale price has climbed even higher to $450,000, a substantial 5.8% increase from October 2023. Median days on market hardly changed, and it’s now at 23.4 - 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

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 October 2024 and October 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 October, just a touch higher than October a year ago (when interest rate unpredictability was really stopping potential sellers in their tracks), and about the same as in 2022. This is, in general, due to sellers attempting to time the market - never a great idea - and to buyers having adjusted to an era of higher (but historically low) rates, and going ahead with their purchases. With inventory low and the median sale price increasing steadily year-on-year - 4.34% in 2023 in Anchorage, even with high interest rates, and 7% 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 - interest rates notwithstanding, people need homes. 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, is only 2.15 months, and dropping month-over-month as inventory decreases with the onset of cold weather. 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 fly right in 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.

• Slow-changing municipality regulations, 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