Anchorage housing: a seller's market.

• Author: Campbell, Melissa
• Position: Statistical Data Included

Those selling a home in Anchorage can rejoice: The market is hot right now. Prices are way up, interest rates are low and for sale signs bare a "sale pending" banner mere days after donning the front yard. New homes are being sold up to a year before construction begins, while many older homes are bought before they are included in real estate listings.

But the same reasons that make the market hot for sellers has some buyers steaming in frustration. The average price for a home is thousands of dollars higher now than even a year ago. Driving up the competition, banks and other loan providers offer more programs than ever before, allowing those who used to be considered high risk a chance to now qualify for mortgages for the first time. Top that off with near-record-low interest rates, and more people are being enticed to invest in a home.

The number of new and older homes on the Anchorage market have been fairly steady over the past couple of years, at about 1,000 in May of both years. But statistics provided by the Multiple Listing Service from January to May, the last month available at press time, shows some changes in the trends. In both 2001 and 2002, just more than 1,000 homes were sold in those five months. But the average number of days on the market last year was 66, compared to 54 now. That figure was 80 days in 2000.

The average sale price this year has been nearly $213,000, compared to last year at about $198,000. In 2000, the average price was $184,000.

Those who already own are seeing increases in tax assessments. Daphane Koropp, an appraiser with Crosson and Koropp, said homes are increasing in appreciation at an average rate of about 1 percent a month. Assessments this year in the more popular neighborhoods saw increases of about 10 percent, and some condominiums around 20 percent.

"Our houses have been way under assessed for years," she said. "As long as the market is appreciating, you will continue to see bumps in the tax assessments."

Koropp said the municipality's tax assessment office has recently worked to get more in line with the market.

These jumps in prices, mortgage lenders and developers say, are caused by the economics of supply and demand.

ECONOMICS

You remember the lesson: Supply and demand drives the market If the supply is low and demand is high, prices go up.

Anchorage residents appear to have more money, thus driving up the demand for a product that is in limited supply. The Anchorage economy has been...