Where Are All The New Homes?

Over the past l8 months, new home building permits have been at a decade low level but some new home communities are garnering a greater share of permits than others. So here’s a chart of where all the new homes are being built. You may or may not be surprised to know that a significant number of new permits are in Eagle River.

In Anchorage WestPark, located in the southwest quadrant, on the former gravel pit site, leads the pack with 59 new home permits. Designed in a coving concept with a residential collector road running from north to south, it is the home of a future park and two new school sites. It’s particularly popular for families. It is also one of the few communities where a number of ranch homes have been built. The lots are 70 feet wide and flat, except for a few lots that will accommodate daylight basements.

The Terraces is also a former gravel pit located in southeast Anchorage off Lake Otis. It has had 19 permits over the last eighteen months. The lots are narrower in the Terraces, approximately 60 feet wide, but it remains popular due to convenient shopping and schools.

Scenic View Park at the curve where Tudor Road turns into Muldoon has had 17 permits. Owned by Northrim Bank, this subdivision has entry level ranch, two-story and split-entry homes on fairly small lots some of which back up to wetlands.

Potter View, a small upscale cul-de-sac of only 16 lots, located above Potters Marsh, has had 5 permits. Some of these lots are as wide as 150 feet with water, sewer and a dedicated road. Other subdivisions with five permits or less include Discovery Park in Southport, Ridgemont, Brookwood North, Prominence Pointe.

Eagle River’s most popular community is Eagle Crossing, a mixed density development with upscale single family homes, attached zero lot lines and duplex condos. Single family permits for Eagle Crossing numbered 25—the second highest number permits within the MOA.

Powder Ridge, at the north Eagle River interchange, had 23 permits. These lots are all 70 feet wide and nicely treed. Hidden Hills had 13 permits which is tucked into an area close to downtown Eagle River. Eagle Pointe had 10 permits over the past 18 months. Next door to the new Eagle River High School, it has bluff lots overlooking Eagle River and interior cul-de-sac lots.

But what these numbers don’t tell you is the number of individual lots in a wide variety of subdivisions that have been built on over the past 18 months. Over 75 permits between Anchorage and Eagle River fall into this category. If you own a lot next door to your home, or bought a lot years ago as an investment, now would be a good time to consider selling it. Although buyers need to be concerned about building a new home in an aging subdivision, building lots are in such short supply that home buyers are over-looking the concern about the value of comparable resale properties.

However, before selecting a subdivision and a lot to build on, home buyers need to decide the type of home they want. Not all lots are created equally. There are flat lots, uphill, downhill, side sloping. Trying to force a ranch or two-story home on an uphill lot will create lots of stairs, either inside or out, to the main living area. Downhill lots need daylight or walk-out basements and if you don’t need all the extra space of a basement, you’re better off searching for that elusive flat lot. Filling a steeply sloping downhill lot can add tens of thousands of dollars to the price of your lot. Unfortunately, appraisers and buyers don’t put a value on what they can’t see and filling a hole to get to the street level doesn’t count for much on an appraisal.

And then, there’s the question of how much is a view worth. The answer is whatever you’re willing to pay but it depends on the view. There are very few lots with unobstructed views of the inlet. Most lots in Anchorage have partial views, overlooking rooftops of other homes. Inlet view lots can be worth anywhere from $20,000 to $50,000 more. Bluff lots on the inlet or lots on lakes, particularly with float plane access, can be worth up in excess of $250,000 more than an interior lot, if you can still find one.

Lots backing up to greenbelts or parks also have greater value. Mountain views are fairly common in all price ranges and so a good mountain view generally means less marketing time when it’s time to sell.

A good rule of thumb to follow when purchasing a lot is that the price should not exceed more than 20 to 25% of the total value of the home to be built. Builders like to buy lots at 20% of the total value while private parties are usually willing to pay up to 25% for their dream home on the lot of their choice.