Luxury housing perspectives: high-end craftsmanship, location and amenities.

• Author: Stomierowski, Peg
• Position: REAL ESTATE

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The luxury housing market in Alaska, amid global recession, represented opportunity for buyers this year, according to real estate sources. Market performance was surprisingly steady with that of recent years, Bonnie Mehner, of Mehner & Associates (Prudential Jack White Vista), concluded after reviewing MLS (Multiple Listing Service) data.

That data showed that in the category of high-end single-family homes exceeding $1 million in price (not including condominium or private sales), 13 residences sold in 2005, 16 in 2006, 10 in 2007, 14 in 2008, and 12 through mid-September.

Mehner considers the local market luxury range to be around $750,000 to $2.5 million, defined on a number of factors, but mostly the luxury quality of the fine finishes.

Many luxury homes are custom built, she said. They tend to feature superior construction, radiant heat, hardwood flooring, custom cabinetry and such comfortable amenities as home theaters and library areas.

For contrast and general perspective purposes, the average MSL selling price for a home in the Anchorage market in 2009 up until Oct. 1 was $322,568--down 1 percent from 2008 (and up 72 percent from the average back in 2000), according to realtor Niel Thomas (Coldwell Banker Best Properties), with inventory showing only four to five months of for-sale home supply in that range.

The 1,749 homes reported sold in all price brackets in Anchorage had declined 10.6 percent compared with 2008 and 18.7 percent compared with 2007, he said.

Still, more homes sold last August than in any single month since March 2006, and the time-sensitive $8,000 tax credit for first-time home buyers was receiving some credit from Thomas and others for spurring lower-end movement.

Most homes in the city, and in particular entry-level homes, sell in fewer than 90 days, Thomas added, and with the incentive, entry-level, single-family detached homes, priced at market, occasionally were drawing multiple offers.

LUXURY ELEMENTS

On the luxury end of the market, besides location as an influential factor, rarity, price, quality and craftsmanship are integral elements," said Gina Pelaia of Bay Realty in Homer.

Some older homes, Thomas noted, have special aesthetic or even recreational appeal--being located next to a floatplane lake, on majestic bluffs offering an ocean view, or affording the convenience of the city's downtown attractions. He tends to think of the luxury category as starting at $1 million.

While size can be a factor--many pricier homes, he noted, have more than 6,000 square feet--are just big without having the quality of materials and workmanship luxury homes are known for. Quality, as Mehner also emphasized, trumps most other factors.

In Anchorage, many luxury...