The Search for the Missing Middle

Of the 20 homes entered in the Anchorage Spring Preview of Homes 8 averaged over $1 million. Hundreds of visitors flocked to see the latest in their WOW factors from the panoramic vistas on Potter Valley Road to the hidden gems nestled in upper hillside cul-de sacs. But lets not forget the missing middle. Builders are stretching to reach the $500,000 to $800,000 market with ranches and reverse two stories to catch mountain views. Walk out lower levels, although not as cost saving as a few years ago, can dramatically add square footage to an otherwise two-story or ranch home. I visited two ranch style homes—one in Eagle River and one in southwest Anchorage. Both were attractive homes under $600,000. Both were designed with a master on one side and secondary bedrooms at the opposite end. I was impressed with Hultquist Homes, Spinell Homes and Merit Homes for their commitment to bring quality square footage under $600,000 to the market—all part of the missing middle.

Anchorage buyers need to make compromises. Whether you are a buyer looking to purchase one of the 8 luxury million dollar homes or the lowest price entry level townhome at $399,000, be prepared to make compromises. Maybe quartz without sparkles will look just as nice. Maybe a secondary bathroom can have a companion laminate top that coordinates with a vinyl, rather than a tile floor. Yesterday, there were only 7 homes for sale between $550,000 and $599,999 so its hard for me to understand why more new construction homes aren’t built to fill out the missing middle. Perhaps, in part, it is because only about 8% of realtors understand or are familiar with new construction protocols and inventory. It’s a testament to the builders who are building under $600,000 that we should all applaud and learn more about the benefits of new construction.  

If you are a buyer who has lost out on several homes to multiple offers  and escalator clauses and are about to give up on Alaska and home ownership due to sheer frustration, I want to encourage you to at least consider a one on one conversation with a builder or their representative. We are fortunate that not all builders have grappled on to the $1 million plus market or at least have saved some of their line of credit to help build into the gap. But they need more help from the real estate brokerage community. The benefits of a new home process is the ability to negotiate without interference from competitive offers; your persona selections for interior finishes; and the ability to move non weight bearing walls a foot or two in one direction or another. It’s a long wait—somewhere between six months to a year—but with a proper home warranty from the builder, you eliminate a lot of the unexpected maintenance costs in the 42 year old resale home that you didn’t get.

I’ve always been a big supporter of a brand new home where you can make it your own—and not have to outguess or out make someone else’s choices. Home ownership, despite the discord that is over flowing on social media and in news outlets is still very much part of the American Dream. Let’s not give up on it just yet.  

Keep an eye out for me this Saturday afternoon at the Mat-Su HomeShow where I will be wondering around connecting with realtors and builders to discuss new home communities in the Mat-Su.