It's finally happened in Alaska

There are exceptions of course, but the last frontier state is seeing sweeping changes in its real estate markets after seeing steady appreciation for more than two years. It’s becoming a buyers market in Alaska.

Anchorage is the state’s largest urban center with 42% of the state’s population, and although sales have slowed, the market will still squeak out some appreciation for 2007, projected by Housing Predictor to appreciate 3.4% in 2007.

 

A growing inventory of homes on the market and historically high prices has caused the market to slow. The average price for a home in Anchorage is now $278,000.

Single family homes under $200,000 are becoming more common place than had been the case the past two years.

Alaska is gaining more new businesses and is experiencing an increase in population, although Alaska remains the least populous state in the Nation. They hadn’t seen a boom like that of 2005 and 2006 in the state since the Alaskan oil pipeline boom of the late 1970's.

The pipeline boom also had serious repercussions as one of the worst US real estate busts in history. The market fell more than 70%. But that boom was fueled by a temporary shortage in housing, which no longer exists.

In Juneau the real estate market has slowed. The days of multiple offers on new listings are over. The inventory of homes for sale is growing on a median price of $178,000. Juneau is projected to appreciate, however, a modest 2.8% in 2007.

In Fairbanks, which ranks second only to Anchorage in population still strong growth is attributed to a growing military economy. Housing Predictor forecasts the market will average 4.9% appreciation through 2007 on a median price of $144,000. As the seasons change from summer to winter the market slows in the great last Frontier. It’s a market that slows down during the winter months as far as sales and picks up again heading into spring time.

The Island of Sitka has some of the most beautiful scenery in Alaska. From the boardwalks of this quaint town you can actually see whales frolic in the water. With only 5% of it's land being able to be developed and most of it being developed already, real estate will always be a "hot" commodity on this scenic Alaskan island. Sitka's average home price is $350,000 with the median being $295,000. Housing Predictor projects appreciation of 4.2% for 2007.

 

Article Source http://www.housingpredictor.com/alaska.html