A bright spot in Anchorage’s economy: Home sales broke records last year – and at record prices

Home sales in Anchorage broke price records last year, reaching their highest volume level in more than a decade, real estate data shows – a rare bright spot for the city’s economy during the COVID-19 pandemic.

The quick sales took place even as the city’s population shrank and many Alaskans relied on government first aid to get it right.

Bill Popp, president of the Anchorage Economic Development Corp., says the extremely low stock of homes on the market and low interest rates have made the loans more affordable.

An increase in demand also came when people wanted to raise their homes, and more families stayed home for work or distance learning lessons, he said. Pensioners also wanted to downsize their homes.

“It’s a seller’s market,” Popp said.

More than 3,200 homes in Anchorage were sold in 2020, most in at least 12 years and well above the annual average, according to data provided by the development company from the Alaska Multiple Listing Service, which provides real estate information.

The average sale price for single-family homes reached nearly $ 394,000 last year, an all-time high, beating the $ 371,000 of the past two years, Popp said.

His organization released the figures as part of the development corporation’s annual economic forecast.

Art Clark, co-owner of Alaska Real Estate Associates, said some homes receive multiple offers and that they can sell for above their asking price.

The activity continued in November and December, usually a slow time as Alaskans leave the state for vacation trips. But many Alaskans did not travel due to the pandemic.

“The loss of Alaska Airlines was the gain in the housing market,” he said.

However, only a certain group of people buy. Many Alaskans are struggling, and more than 10% of the state’s workforce collected unemployment checks during the pandemic.

“The people who buy homes are not necessarily the people who have been hurt by the economy,” Clark said.

There is also a downside for buyers, who do not have many homes to choose from, he said. Maybe there are now 300 homes for sale in Anchorage, well below the more than 1,000 he has sometimes seen in his career, he said. Some clients waited almost a year to get a home.

Most homes are sold within a month, well below the typical time frame, he said.

Popp said inventory housing was low last year because many potential sellers kept homes off the market because the pandemic plagued the state and the national economy. People were wary of the uncertainty about how the pandemic would affect their jobs and future job prospects, he said.

House prices in Anchorage have been rising steadily since 2011, when the average home was sold for $ 322,000, Popp said. Low interest rates during those years helped drive the long-term trend, he said.

The rising prices come as the population of Alaska and Anchorage has shrunk in recent years as more people leave Alaska than move here.

The strong real estate market is expected to continue this year, Popp said.

He said builders are increasingly applying to build new homes that can meet demand, which could help put more homes on the market.

“We think there is a lot of pent-up demand that was not met last year,” he said.