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Housing stabilizing.

Housing Stabilizing Housing Stabilizing. Although the four-year slide in Alaska's housing market appears to have ended, rents and house prices remain far below what they were in 1986, according to a recent study conducted by the University of Alaska Anchorage's Institute of Social and Economic Research for the Alaska Housing Finance Corp. The research agency also notes that despite increases in population and home sales and declines in vacancies and mortgage defaults, prices and rents continue to show effects of the 1986-88 recession. In an August report entitled "Alaska's Housing Today," ISER observes:

* In an aggressive campaign to sell off its inventory of foreclosed homes, the Alaska Housing Finance Corp. sold 1,000 homes in 1989, neutralizing price and rent increases that would have otherwise resulted from population growth and housing scarcity.

* The condominium market continues to be worse off than the single-family home market, largely because conventional financing is not available for condominiums in complexes with less than 70 percent owner occupancy. A 1989 survey revealed that only 41 percent of Anchorage condominiums were owner occupied.

* Between 1987 and 1989, more than 4,000 units disappeared from Anchorage housing stock. Most of these were mobile homes and low-quality apartments and single-family homes.

* During the 1986-88 recession, new home construction virtually stopped. The Anchorage and Matanuska-Susitna regions do not hold much promise of new construction in the future.

* The number of foreclosed Anchorage housing units owned by lenders dropped by more than 25 percent from the summer of 1988 to the summer of 1990.

* The rate of new foreclosures is unlikely to continue declining in late 1990 and 1991.

* Prices of single-family houses in the Anchorage and Mat-Su areas should rise enough to keep pace with inflation for the third quarter of 1990 and in 1991. House prices in Fairbanks likely will begin to recover in 1991, increasing at about the same rate as in Anchorage.
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Title Annotation:Alaska Business Briefs; Alaska
Publication:Alaska Business Monthly
Date:Nov 1, 1990
Words:316
Previous Article:Anchorage office space.
Next Article:On the mend.
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