Are Property values decreasing? (Anchorage, Kenai: student loans, property taxes, cul-de-sac)

[JD2AK&ME]

My husband and I are two teachers that will be retiring in June 2009. We want to buy a 2bed 2bath Condo in Anchorage and are trying to decide If we should buy soon (If we run into something we really like) or wait to see if property values are going down. How have the property values been holding in Anchorage? Thanks in advance for any insight.

[stiffnecked]

Maybe, but not like the lower 48. I hope you like your neighbors. As with most condo's they are never truely paid for. The monthly condo fees will last well past your passing....
If your talking about buying a ZLL that's different.

[JD2AK&ME]

We are looking at condos instead of a one family house because we will be living in Anchorage From spring to fall but not in the winter and want something that is easier to maintain when we are not there. We will be spending the winters in Maine.(probably colder then Anchorage!) We come from upstate NY and are quite used to cold and snow. We are not into hot humid weather so no moving south for us. Question: what is a ZLL? I am not familiar with this term. We are looking at Chester Park Cooperative as one possibility. Thanks again

[RayinAK]

Property values have not decreased to any significant degree as you can see on the assessment value notices mailed to property owners. However, property owners who want to sell their homes must sell the property at a lower value to sell faster. Realtors will tell you otherwise, however. Property taxes, utilities, and construction materials are higher than ever.

[stiffnecked]

ZLL=Zero Lot Line.

[UpNorth]

ZLL (Zero lot line) essentially means the property is half of a duplex. These are very common around anchorage.

It's difficult to accurately predict how the local housing market will be over the next couple of years, but I can tell you my story to give you my perspective...

in 2002, my husband and I bought our first "home," a ZLL (2 bedroom, 1 bathroom, 840 sq ft, on a 4500 sq foot lot). This was located at the end of a cul-de-sac. We purchased it for $118K (spruced it up with new flooring) and sold it 2005 for $150K (on the market for 5 days!)

We then moved to Wasilla (about 45 minutes from Anchorage) because the housing was so much cheaper than Anchorage and it was a growing community. We purchased a home there for $150K (3 bedroom, 1 bath, 1.1 acre lot). Within a year we were ready to move back to Anchorage because the commute from Wasilla to Anchorage (for work) was much worse (long, icy, scary in the winter months) than we anticipated. So we spruced up the bathroom and sold it for $169K, about 2 weeks on the market.

Now the housing prices had gone up a little and because of some new student loans (and I wasn't working, rather finishing my degree), we could only afford to buy a little 2 bed, 1 bath condo (approx. 1100 sq ft.) We purchased it for $108K and the dues were just under $200/month. It was in an awful part of town and my husband and I wanted to fix it up and sell it asap. We, again, spruced it up and within a year we sold it for $119K. This time, it was on the market for about 5-6mths. I think the housing market was slowing down, plus the condo wasn't in a nice part of town - that's why it took longer to sell.

So now that brings us to our current home. It's about 1850 sq ft with 4 beds, 3 baths, in a nice family-friendly neighborhood. We purchased it for $308K about a year ago, and I'm positive that we couldn't get our money back if we had to sell it today or next month... My realtor/friend is crossing her fingers for the "gas pipeline" to happen in Alaska soon. She thinks that could bring another housing boom to the Anchorage area... but those are her thoughts.

The housing market feels pretty stagnant right now. If you wanted to get a nice condo with your preferences, I would think you could get one starting at about $179K+. maybe. If your tastes are slightly more developed you might need to look at prices in the $250K+. There are some icky areas in Anchorage and I personally wouldn't want to live there (especially if you were leaving for chunks of the year.) If you see condos for sale for less than $150, there is probably something wrong with the location or it's super tiny or run-down.

Have you considered Eagle River or the Wasilla/Palmer area? These communities have a smaller population than Anchorage... thus less amenities, but they offer more affordable housing.

Feel free to ask more questions if my thoughts aren't clear.

Good Luck in your search!

[stiffnecked]

Zero Lot Line, what happens when you keep a clean and tidy place and the person on the other side of the wall is a slob?? I just hated that.

[Arcticthaw]

Originally Posted by JD2AK&ME

We are looking at condos instead of a one family house because we will be living in Anchorage From spring to fall but not in the winter and want something that is easier to maintain when we are not there. We will be spending the winters in Maine.(probably colder then Anchorage!) We come from upstate NY and are quite used to cold and snow. We are not into hot humid weather so no moving south for us. Question: what is a ZLL? I am not familiar with this term. We are looking at Chester Park Cooperative as one possibility. Thanks again

I was in the Portland Maine area recently and would rate their winters along with the Kenai Peninuls. Though I think Maine is the pothole capital of the world. I liked being near all the water.

[JD2AK&ME]

Thanks to everyone for taking the time to post a reply.

[Glitch]

Originally Posted by stiffnecked

Zero Lot Line, what happens when you keep a clean and tidy place and the person on the other side of the wall is a slob?? I just hated that.

Or worse yet, when your roof begins to leak and your neighbor doesn't want to cough up the money to replace his half. ZLLs are not a good idea.