Market

2008-12-11T21:50:00.000-08:00

*This Article is found on Alaska Trends article. I believe this letter from the governor does a wonderful job explaining the the market in Alaska. It is not really affected by the media or lower 48 issues. We are even one of the lowest states in foreclosures.

Be proud to be an Alaskan!

Home, Sweet Home
By Governor Sarah Palin
Home may be where the heart is, but thanks to strong, rapid appreciation in
home prices in Alaska, it’s also where individual and family wealth has grown.
Despite some dire situations for our neighbors down south, the news for Alaska
homeowners is mostly good and our housing market has remained strong.
This month’s Trends focuses on foreclosures and delinquencies – and mortgage
lending activity – in Alaska’s housing market. While much of the country has relied on the real estate boom to both
maintain growth and to mask deeper issues, our state economy is becoming more diverse and is supporting a
healthy real estate market, rather than one driven by speculation.
Certainly there have been more mortgage foreclosures than in previous years and mortgage lending activity has
fallen statewide. Yet real estate prices remain quite strong and stable.
While the numbers vary across the state, in the second half of 2007 the average price of a single-family home fell a
modest 1.1 percent, but the price for condominium and multi-family properties both increased, 4.5 percent and 13.3
percent respectively.
Of about 5,800 mortgage loans in Alaska, four out of fi ve were for single-family homes. At $324,054, the highest
average sales price is in Juneau, followed by Anchorage, the Ketchikan Gateway Borough and Bethel Census Area.
The least expensive single-family homes are in the Kenai Peninsula and Matanuska-Susitna boroughs.
With 435 foreclosures statewide between January and June 2008 – the highest fi rst-half fi gure since 2003 – the
number of foreclosures is rising. But compared to the national average of 2.5 percent, Alaska’s 0.8 percent is the
second-lowest among all states. Only Montana’s at 0.7 percent is lower.
Last month, Trends covered the cost of living in Alaska. Housing is the single biggest component – for many, 30
percent to 50 percent of family income. This has a signifi cant impact on our labor force, both attracting and keeping
the best people we can. When members of our workforce leave our state, they often cite the lack of affordable
housing as the single biggest reason. When skilled and professional workers consider making a home in Alaska,
housing is the number one obstacle.
We will continue to work through the Alaska Housing Finance Corporation to provide Alaskans access to safe,
quality, affordable housing. AHFC manages a variety of programs designed to improve the quality of all housing
throughout Alaska. It recently announced $200 million for its nationally recognized home weatherization program
and $100 million for home energy rebates to homeowners making energy upgrades to their homes.

For more
information about AHFC or its programs, contact Bryan Butcher, director of government relations and public affairs at
bbutcher@ahfc.state.ak.us or (907) 330-8445.
Alaska homeowners realize the place they live is, over time, a good investment. But like all investments, it will have
ups and downs. The good news is that in recent years, there have been few downs in Alaska real estate.

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