You’ve entertained the thought of buying a home in Anchorage. Before you partake in the taxing ordeal of house hunting, you should ask a number of questions and do a series of preparations. You should consider where to live, how much it will cost you and what are the current market trends.

Buying a Home in Anchorage

About Alaska

As the largest city in Alaska with almost half the state’s population, Anchorage is an epicenter of diverse culture, abundant wildlife and breathtaking natural beauty. With an economy driven by oil and gas, tourism and fishing industries, the city is a major hub of the exotic interiors of Alaska. Points of interest include a teeming arts community, large shopping malls, a live theater, statewide university system, recreational opportunities, and wonderful business prospects.

Anchorage Real Estate Market

From the average Anchorage home on the market, one can expect reasonably priced houses selling quickly with multiple offers. The number of homes currently on the market is growing and especially grows throughout the summer months. Because demand in some cases is greater than supply, many sellers overprice their homes. The most popular properties are below $175,000, and properties up to $250,000 are second in popularity. Ranch style homes (all on one level) are "hot". Be prepared to pay for them, though. A small (800 square foot) in excellent condition could cost up to $240 a square foot. New 1,200-square-foot ranches are now starting upwards of $275,000, depending on the builder. For the upper end buyers, Goldenview, Prominence Point, Discovery, Turnagain View Estates and several subdivisions in Eagle River are doing quite well because of the low interest rates. Buyers in this price range demand quality and amenities over square footage. Interest rates have leveled somewhat at about 5.675 percent as the employment market stabilizes. FHA has raised their loan for single family homes and up from $235,100 to $375,250 for a 4-plex. VA has raised their limit on fully insured loans to $539,475 with nothing down. Alaska Housing has also raised its tax exempt first time homebuyer limits to $271,125. Purchases above that amount are acceptable under the taxable program. Check lenders for further details.

Moving to Anchorage

The greatest activity among real estate in Anchorage occurs with first time buyers. Whether it is your first time purchasing a home or your twentieth, you need to take a few steps in purchasing a home. First and foremost, create your wish list. Number of bedrooms and bathrooms, garage and home style are all things to consider. You also need to decide where you want to live. Visit Anchorage, explore the neighborhoods and assess the area. A current housing hot spot is southern Anchorage because of its close proximity to the urban downtown area. Once the answers to these questions have been reached, you need to look at your budget and determine how much house you can afford. You should consult with a mortgage lender to determine the size of the mortgage you could qualify for. Once the specifics of your financial abilities have been reached, it is a great idea to contact an Anchorage real estate agent. Agents or brokers are experts on real estate and will be a great help in your quest to own a home. However, you should locate a real estate agent with a good reputation and with whom you have a good connection. Find someone you can trust. So look around, choose wisely, and go with your instincts. Once you have found the residence you like, make an offer. Close the deal. Enjoy your new Anchorage home.

By: Karissa Lang

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®