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Weekly UpdatesA house to call a home is not only a basic necessity, but also has become a retreat from outside stress and everyday activity. Today, Alaska's largest city is filled with executive homes that offer buyers great extra features and wonderful views.
Anchorage home professionals agree that an executive home in the city starts at $650,000. Between 20 percent and 30 percent of Anchorage's buying market is looking for homes in this price range, and finding custom amenities and breathtaking special touches. The market shrinks to less than 5 percent for homes costing $1 million or more.
Prospective buyers in the market for executive homes will find varied homes with custom touches.
Dan Wolf, associate broker for Keller Williams Reality Alaska Group, said a great feature is the increased size of homes in this price range, compared to homes selling for less.
GREAT AMENITIES
"A high-end home in Anchorage is probably more than 3,500 square feet and generally on a 15,000-square-foot lot or better," he said.
The master suites in many of the executive homes Wolf has featured are significantly larger, often with private baths as large as 120 square feet with jetted tubs, double vanities and separate showers. Some homes also offer sauna rooms and granite tiling.
Wolf said he has shown many high-scale homes with custom home-theater rooms equipped with surround sound and theatre seating.
"It is a definite trend," he said.
According to Mike McLane, a real estate broker for Prudential Jack White Vista, prices are higher because of Anchorage's picturesque setting.
"Two items drive the price: view and location. More and more folks are wanting to downsize a bit and move downtown to take advantage of the unique urban lifestyle Anchorage has to offer. On the other side of the coin, you have those who want the higher Hillside viewscapes in areas like Prominence Point. And then you have the draw of Campbell Lake with views and the opportunity to fly from your front yard," he said.
McLane said the options for real estate nearing the $1 million mark also include condominiums, which share many special features with the larger homes.
PLUSH PARKING
"Higher-end homes and condos feature natural stone finishes, such as granite, travertine and marble; and much more space in the master-suite bath combinations, as well as custom features in the kitchen," he said. "In single-family homes, we are seeing up to five-car garages, in the high-end condominiums (there is) parking for two cars in a secured garage."
He said the condominiums also feature heightened security with secured entry, outside video surveillance and both valet and concierge service available, while single-family homes feature domestic electric elevators.
"That stuff did not exist 10 years ago," he said.
BEST OF THE BEST
Nearly every feature in executive homes is a step above lower-priced houses and offers the finest-quality materials.
Radiant heating is a must in today's modern homes; the coiled-heating system located in the floor is used to heat the entire home, garage areas and some driveways. The kitchens in executive homes are designed to be user-friendly and beautiful at the same time.
Mary Tutterow, a real estate agent and certified residential specialist with Dynamic Properties, said that the amenities found in the high-end homes are not generally found in Anchorage homes priced under $500,000.
"Kitchens are very important and it is not unusual to see elaborate kitchens with granite counters, upgraded appliance packages and lots of cabinetry and an island," she said.
Many of the homes listed for more than $1 million have duel dishwashers, trash compactors, water softeners, wine coolers or cellars, and formal dining rooms, as well as breakfast nooks. The ceilings are often vaulted, Greek-like columns separate open rooms with an eclectic flair, while elaborate staircases and elegant entry areas and hidden embellishments often help spark up a conversation.
"Lots of built-ins are found in closets and garages, and occasionally the garage will even have a dog shower," she said.
THE MARKET
During February, there were approximately 30 homes and four condominiums in the Anchorage area that were priced for more than $1 million. Nearly 300 homes sold for more than $500,000 in 2006.
Julie Erickson, an Anchorage real estate agent with Prudential Jack White Vista Real Estate, said the high-end market in Anchorage has evolved compared to the low- and mid-ranged markets.
"All price ranges have seen increased sales exponentially the last few years. I believe it goes hand-in-hand with the various lending programs that are available to buyers that wouldn't normally qualify on a "standard" conventional loan: for example, interest-only loans, adjustable-rate mortgages (and) 80/20 loans. These are options for people who know they're only going to be in the homes for a 2- to 5-year range. So many buyers, regardless to price, can purchase homes," she said.
Erickson said in early February Multiple Listings Service had 30 homes in the $1 million and higher range.
"This is an increase of approximately 1,000 percent versus a few short years ago. With an average sale of 1.42 (homes) per month in this range, our current market has close to two years of active inventory," she said.
HIGH PRICES
During the first two months of 2007, $1.9 million was the biggest price tag on a home near Westchester Lagoon, yet the city is dotted with homes downtown and on both the upper and lower Hillside, which offer executive amenities at a hefty cost. In 2006, one house per month was sold for more than $1 million, while 2.8 homes per month were sold in the $750,000 and $1 million range.
"The very high point of the market could reach $2 million," Wolf said. "Homes at this price would have major views, such as on a lake, Cook Inlet or other mountain top panoramic views. The home would be in excess of 6,000 square feet and would be of the highest quality."
Yet not all buyers are looking for a lavish home; Wolf said others are looking to buy and turn the property into an investment.
REFURBISHING FACTOR
"Anchorage is growing to a point where older properties are beginning to be torn down and upscale condominiums built where the old homes stood in the downtown area," he said.
Wolf explained that land was recently made available in Government Hill, an area in north Anchorage, which was the site of run-down tenement housing.
"Next year promises new development on this site that will be upscale with nice views and modern amenities," he added.
Those in the business of selling homes in Anchorage, including Tutterow, concur that the executive home trend is on the upswing and the houses are likely to be bigger and the prices higher.
"I believe this area of the market will stay strong as buyers move into the areas and existing homeowners upgrade to bigger or nicer homes," she said.
"There are a few new subdivisions coming on the market that will continue to keep the upper-end market viable. Prominence Pointe has some lots left, the new Cross View Estates should be (going) strong in the spring, and there are other developers introducing subdivisions where the lots will be $200,000-plus making it mandatory to build homes in at least the $800,000 price range," Tutterow added.
Wolf agrees that the future is bright for Anchorage's growth.
"The market continues to be strong for sales in Anchorage. There is a shortage of good developable land in the Anchorage basin. The economy is growing. There are many positive aspects. Anchorage just finished its 19th consecutive year of growth, according to the Anchorage Economic Development Corporation," he said.
With the growing economy, new markets are also unveiling. McLane explained that the baby boomer generation will be looking for other options and areas.
GROWTH OUTSIDE ANCHORAGE
"We will see more and more high-end secured condominiums being built downtown, as well as upper-end retirement communities that will serve the ever expanding baby boomer market as more and more people of this age and means reach retirement age," he said. "This is already becoming the largest growth sector on the Kenai Peninsula and other close-by recreational favorites like Homer, Cooper Landing, Girdwood, Alyeska and Kenai Lake. More well-to-do clients are shopping for well-appointed second homes here."
Erickson said she foresees that the market will grow beyond the Anchorage Bowl.
"The Matanuska Valley has seen a steady influx of buyers looking to purchase more for their money. Typically, buyers can purchase homes existing or new construction on larger lots. If (or) when the Point MacKenzie (Knik Arm) bridge goes in, more people will see living in the Valley as a great option," she said.
Wolf also believes that the option of the Knik Arm Bridge would be positive for the Valley.
"The Matanuska Valley continues to expand. If a bridge ever happened, housing growth would expand there," he added.
Editor's note: Vickie Rodriguez, a real estate agent with Dynamic Properties, contributed to this article.
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