WASILLA— Eric Bushnell, past president of the Valley Board of Realtors and Lee Realty LLC Broker, recently provided a real estate quarterly review and follow up interview for the Mat-Su Valley Frontiersman.
This review is a mid-year market condition report for Southcentral Alaska with an emphasis on the Mat-Su Valley. It’s focused on the residential market.
Each area and neighborhood is different, according to Bushnell. He said that neighborhoods that are more centrally located are more popular, resulting in more activity. He noted that neighborhoods with moderately priced homes will also have steady activity over the year.
Bushnell noted that this information derives from the Alaska Multiple Listing Service and is not guaranteed but deemed reliable.
Matanuska-Susitna Borough Statistics:
The Year to Date median price of homes in the Valley is currently $260,000. That’s a 2.3 percent increase from last year’s median price of $253,000.
The total number of homes sold is up 41 units, which is a 5 percent YTD increase. The median price for a new home has grown from $325,000 in 2018 to $342,500 in 2019, which is a 5.4 percent increase.
The total number of new homes sold in 2019 is down by 8.3 percent with 12 units sold.
The Valley’s land prices experienced a 4.2 percent drop in the last year. The median sales price for a parcel of land lowered from $35,500 in 2018 to $34,000 in 2019.
A total of 571 homes valued below $300,000 along with 284 homes over $300,000 were sold this last year, which is a 13.6 percent increase year over year.
Bushnell said that commercial rates are more difficult to review since many commercial sales are not included in the local Alaska Multiple Listing Service. Commercial properties have become more available. Thanks to the increase of newer buildings, commercial rates rose significantly.
Commercial rates vary by development, but Bushnell’s conservative estimate indicated commercial rental rates have increased somewhere between 25 to 35 percent over the last few years. Despite that elevation, the Valley’s commercial growth hasn’t slowed down.
Municipality of Anchorage Statistics:
The YTD median price for homes in the municipality of Anchorage is $339,900. That’s up 1.5
percent from last year’s median of $335,000.
Overall homes sold are down 7.1 percent at 91 units total. The median price for a new home has grown by 2.5 percent, going from $531,000 in 2018 to $544,545 in 2019. The total number of new homes sold in 2019 is staying steady with only a slight difference of 1 unit change year over year.
Anchorage land prices have grown by 16.9 percent. Parcels of land increased from $124,000 in 2018 to $145,000 in 2019. This increase resulted from higher development costs and shrinking supplies of quality building lots, according to Bushnell.
Overall, the Valley’s housing market is stable, according to Bushnell. He found slight growth in some areas, with small contractions in other areas.
He said that consumer confidence is currently waning due to the current debate over Gov. Mike Dunleavy’s budget. He said it is felt on both the local and state level, but ultimately will be a “blip” in the market’s long-term timeline.
New home prices have gone up because building materials costs have gone up along with the tariffs on various items.
There is still substantially more housing and land available in the Valley compared to Anchorage. The Valley is currently at 133 new homes sold while Anchorage is currently at 49 homes.
Bushnell said that land is not only more abundant, but more affordable in the Valley compared to Anchorage. There are 885 residential parcels in the Valley versus Anchorage’s 325 residential parcels.
Contact Mat-Su Valley Frontiersman reporter Jacob Mann at email@example.com