Most home values increase across Anchorage municipality, according to latest

Home values in Anchorage increased in 2022, but many buyers face reduced inventory and lower purchasing power.

ANCHORAGE, Alaska (KTUU) – Home values in Anchorage increased in 2022, but many buyers face reduced inventory and lower purchasing power.

That’s what the Anchorage Municipality’s 2023 Property Appraisal Annual Valuation Report suggested Thursday after being reviewed in an Anchorage Assembly work session. For homeowners, trends in the Anchorage area show that property value is continuing to increase.

“Single family homes — we are on average, increasing by about 2%,” Municipality Assossor Jack Gadamus said. “Duplex/triplex about 2.5%, condos are increasing a little bit more at 3.7, and then land we’re keeping pretty flat this year.”

The report shows that single family homes have varied increases based on assembly district, with Downtown increasing 1.3%, Eagle River/Chugiak increasing 2.1%, West Anchorage increasing 2%, Midtown increasing 1.8%, East Anchorage increasing 1.2%, and South Anchorage increasing 2.8%.

Gadamus said the average sale price for properties has been increasing by 6 or 7%, but this year they are taking a cautious approach to calculating trends due to a lack of available data. Only about 1,100 home listings were tracked in 2022, and nearly 3,400 sales were recorded in 2022. The average assessed value to average sale price ratio was steady at 96%.

Gadamus believes there’s something that’s driving all of this.

“So supply, we still have little new construction. So this last year — if you look year over year over the last five years — residential construction hasn’t been very big,” Gadamus said.

Low supply causes high demand, even on homes that are for rent rather than sale. On average, Anchorage rents increase by 14% every year.

2023 valuation notice a.k.a. green cards.(Municipal Assessors Office)

“A lot of that will have upward influences on prices, but then we also have reduced purchasing power now as well,” Gadamus said. “Interest rates are on the rise, I think that’s on a lot of people’s attention. We also have inflation that’s on people’s minds as well.”

Gadamus emphasized he’s had his own struggles with his experience looking for a home in the past year, in part due to the “slim pickings” of available options for those wishing to purchase a home.

The Municipality also says property valuation notices — commonly referred to as green cards — are going to look different this year.

Due to supply chain issues, the annual valuation notices will be printed on white paper this year. This year homeowners will receive a white paper with a green stripe at the top of the card. However, the paper color is the only change in regard to these notices: all processes, including the appeal process, will remain the same.

The report is good news to municipal officials.

“It’s encouraging to see the growth in property values — as that generally means homeowners have a larger share of equity in their home,” Anchorage Mayor Dave Bronson said in a statement. “It’s our goal to build 300 housing units citywide, per year… We want to create an environment that fosters development and increased private property ownership.”

Property owners who have questions about their assessed value can visit the Municipal Assessor’s office, located on the third floor of City Hall, or call 907-343-6500.

Home values in Anchorage increased in 2022, but many buyers face reduced inventory and lower purchasing power.