Kodiak Daily Mirror - Survey New home construction down in Kodiak
Survey: New home construction down in Kodiak
by James Brooks / editor@kodiakdailymirror.com
Dec 27, 2011 | 122 views | 0 0 comments | 3 3 recommendations | email to a friend | print
KODIAK — New home construction rates in Kodiak through 2011 are about half what they were in 2010, according to the latest figures from the Alaska Housing Finance Corporation.

Through the third quarter of the year — the latest period for which statistics are available — nine new homes were built in the Kodiak Island Borough. All of those were built in the Kodiak city area.

Last year, 16 homes had been built by the end of the third quarter.

All of the 2011 homes are single-family units, and only two were completed in the third quarter, compared with six completed in the third quarter last year.

The price of the homes also dropped from last year. In the third quarter of 2010, the average sales price for a new home was $414,000. This year, that figure was $355,000. For existing homes, the average third-quarter sales price was $270,000, down from last third quarter’s $312,000.

State economist Mali Abra-hamson said Kodiakans shouldn’t read too much into those figures — the island’s housing market is so small that it can vary wildly from month to month.

She pointed to the difference between the second quarter of the year, when new home prices were averaging more than $612,000, and now.

“You see that there was very few new houses sold in that quarter and they’re very expensive,” she said. “You go to third quarter and you see the new data, and it’s back down into the 300s.”

In this month’s Alaska Economic Trends magazine, Abrahamson outlined trends in statewide home construction and sales. In her study, she found the state mirrors nationwide trends, following rises and declines — but to a lesser extent.

“The biggest difference between Alaska’s residential construction activity was Alaska’s home prices didn’t plummet over the last several years as did the nation’s and that mortgage delinquencies were low in Alaska,” Abrahamson told the Alaska Journal of Commerce.

The small size of Kodiak’s housing market also makes it difficult to compare with the rest of the state. Averaging the state’s eight biggest urban areas, new homes sold for $281,000 in the third quarter. But that average includes Anchorage’s average cost of $419,000 and Kenai’s $202,000 — the highest and lowest averages in the AHFC survey.

For existing homes, Kodiak’s third quarter figure was third-highest, behind Anchorage’s $326,000 and Juneau’s $320,000.

Contact the Mirror at editor@kodiakdailymirror.com.
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