Glacier City Real Estate News Q4 2022

4 homes, 2 condos and no vacant land sold in the Girdwood area from October 1st thru December 31st, 2022.

Homes - 166 Northland Road - is a small 1966 construction home in a desirable location considered by many to be walking distance to the mountain. This home is in disrepair and was an “as is” sale. In all likelihood it will be a tear down for a new construction property. It is on public ater and sewer.

2940 Alyeska Highway - is at the other end of the spectrum when it comes to Girdwood real estate. Built in 2000 the property was and has been completely remodeled in a modern and minimalist style with beautiful custom finishes in stainless steel, concrete and wood. The home has an open spacious feel and is located less than two blocks from Alyeska Resort’s Daylodge. It is the first MLS sale in Girdwood for over two million dollars.

1011 Alyeska Highway - is a small 1958 construction home on a nice down valley lot off Alyeska Highway. This lot is zoned to accommodate a duplex property (two separate homes). Lots such as this are becoming increasingly rare in our market.

263 Hottentot Mine Road - was built in 1966, has a treated post foundation and is located at the top of the rise on Hottentot off Sproat Road. It has a shed type roof

and has seen several upgrades over the years. Once upon a time, several decades ago, I lived in this home. The primary heat source back then was wood and fuel oil. I can remember getting up to feed the wood stove with fire mitts on and being startled awake as I made bare skin contact with the wood stove. I do not miss those days. Great neighborhood and many fond memories of this home. I hope the new owners enjoy it.

Condos - 314 Crystal Mountain Road #107 (Timberline Condos) - Located on the mountain, this one-bedroom condo has some nice updates including wood paneled flooring and newer appliances. Timberline is considered one of the nicer condo associations due to common elements like an owner sauna, party room and individual unit storage in a common room off the garages. Though this unit does not have a garage it does have an in-unit laundry and an accordion style divider from the kitchen area to the living room in case you have guests staying over. Definitely one of my favorite apartment style older condo buildings.

444 Alyeska View #7 (Snowbird Chalet 2)

These are free standing condos off Alyeska View Avenue with the horse shoe driveway. The condo is a vintage unit that had been lightly used over the years, has a younger furnace and is in good overall condition. These condos are super popular because they do not have shared walls, are close to the mountain and have a great floor plan. They include a larger master bedroom, open kitchen living room, a fireplace and a second bedroom upstairs with a loft. In short you can sleep a lot of folks and they remodel very nicely.

Glacier City Realty - Honesty and Integrity in everything we do

Broker Summary

I like to look back at my comments from the previous quarter’s newsletter when I start to write the next one to see how accurate my predictions were. Last quarter my prediction was “The Girdwood market is an island unto itself, and typically reacts to adverse economic news with a slowing in the pace of sales, but with little or no impact on prices”. Last quarter there were 15 homes, one commercial, one condo sale and two vacant land sales. This quarter’s dramatic drop in sales is driven in part by Seller’s hesitancy to let go of properties when inflation and interest rates are high, regardless of how great prices are. Many Girdwood property owners (as well as Bird and Indian) have considerable equity in their properties. Unless there’s a strong reason to sell (birth, death, divorce, retirement or change in employment) they wait until the economy and interest rates are more attractive to consider selling.

2022 Recap

2022 was a year of contrast. We saw amazing interest rates up thru early June in the 3-4.5% range. Homes everywhere in Southcentral were selling with multiple offers, accelerator clauses, Buyers purchasing “as is” and paying part of the

Sellers’ closing costs. By the 4th of July the Federal Reserve had flipped the switch. Wesaw rapid increases in interest rates at ¾’s of a point right up thru the start of winter. This cut into Buyers purchasing power tremendously in all markets. Girdwood prices continued to appreciate, and we saw little change in the rate of appreciation other than some Buyers being cut out of the market due to decreased purchasing power.

An appreciating market

The number of residential sales increased from 22 homes in 2021 to 32 in 2022. The average sales price increased from $651,909.00 to $756,750.00 from 2021 to 2022. Condo sales decreased slightly from 13 in 2021 to 11 in 2022. Average condo sales prices increased from $413,027.00 in 2021 to $539,136.00 in 2022. Vacant land sales also decreased from 14 sales in 2021 to 5 sales in 2022.

Looking Ahead to 2023

Expect to see interest rates come down by at least 1-2% (to around 5%) this spring. Inventory should remain low, not just in the Four Valleys area, but throughout Southcentral Alaska. We should see more sales in the $1-3 million dollar price range and an increasing number of older homes that will be “tear downs” for new construction. The good news for property owners in Girdwood, Bird and Indian values will remain high. The bad news for Buyers is that it is an expensive market to buy into and it’s unlikely to change any time soon.

What does the future hold for Holtan Hills?

After having served on the Holtan Hills Housing Advisory Committee from June thru December of 2022, attending many community meetings, assembly work sessions and actively listening to the community, I have to say that there are more questions than answers for the future of this project. The assembly has listened to the community testimony and generated a revised version of the RFP to Holtan Hills. My personal and professional opinion is that the process is so deeply flawed that unless really major changes can be made to the RFP, the assembly would be wise to postpone the project at least until the Girdwood Area Plan is revised. Any disposal of public lands for residential development in Girdwood should include a mandate for a significant portion of the property to be dedicated to community and workforce housing. I am pleased the assembly has been so responsive and very proud of the clearly articulated and well educated effort the community has made. I encourage local residents to thank your volunteer representatives on GBOS, LUC, HHHAC and many other individuals who have given their time and passion to doing what is needed and necessary to shape the future of the community. The decision made today on this project will set a precedent for future development in the valley for decades to come