Anchorage Daily News

A new state report shows that the number of house sales and average house prices in Alaska declined last year, but some real estate agents say the Anchorage market now seems to be improving.

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The average selling price for a single-family house in Alaska fell about 1 percent in the second half of 2007, compared to the same period in 2006, according to the Alaska Department of Labor's report, published in the August issue of its magazine, Alaska Economic Trends.

The price drop in Anchorage was 0.6 percent, and in the Mat-Su it was 3.9 percent during the same time period.

More recent data collected by the Anchorage Multiple Listing Service Inc., which collects price information from real estate agents, showed a smaller decline. Through July, the average price of a single-family house was down about 0.25 percent, compared to the same period of 2007.

So is a decline of 1 percent or smaller significant?

It depends on whether you see the glass as half-empty or half-full, said Brian Laurent, a research analyst for the Labor Department.

Many parts of the Lower 48 are dealing with much steeper and more damaging house price declines, due to a "real estate bubble" that burst or other economic woes, he said.

Additionally, not all local home prices dropped last year: The state report showed the average price of a condo in Anchorage increased 4.8 percent, and 1.9 percent in the Mat-Su.

IMPROVEMENTS?

Some Anchorage real estate agents said they've seen a slight increase in average house prices in Anchorage over the past six months.

The data shows that the real estate market might be strengthening, said Niel Thomas, a real estate agent.

On the other hand, the price changes are so minor that they might be statistically insignificant.

Here are some recent MLS statistics:

• The average price of a single-family house in Anchorage so far this year was $333,058, about a quarter of a percent less than the average price in the same time frame last year. This is a slight improvement: Earlier in the year, the price decline was closer to a half-percent, Thomas said.

• House sales are down about 10 percent over the same period last year. That's an improvement over the first five months of the year, in which sales were down 13 percent.

Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.

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