Alaska’s Economy is Immune…Or Is It?
Daily, sometimes several times a day, people ask what is going on with real estate in the Mat-Su Valley. We hear continual bad news about falling prices in California, Florida, Michigan and other places like that. But people want to know what is going on in Palmer, Wasilla, and even in Anchorage…can you imagine that?
As my last Market Memo showed the market is hanging in there. Compared to last year at this time the inventory and sales are about the same. My 2008 Predictions show enough good news to make me feel like the markets will continue to remain about the same..until they change :-).
If you have been around awhile, you will remember the crash of 85 when prices dropped precipitously here in Alaska and especially in Palmer and Wasilla. In fact, we purchased a home in 1987 for about 1/2 of it new price in 1983…and then we saw our house value drop even further.
But that was a different problem. The problem in 85 was that the builders and banks continued to build like the economy was booming while oil prices were in the tank.and companies on the North Slope were laying off workers in droves. People were leaving the state looking for work. Prospects were better elsewhere and there was little hope for an economic recovery in Alaska.
Things are different now. We are in a global economy and things are actually looking better in Alaska than in many places of the country. I think people will tend to stay in Alaska. In fact, if my email box is any indication, people are clamoring to move here. If more people move in than out they certainly need a place to live. So they will buy or rent and keep our realestate market active.
So that’s my opinion, time will tell if I’m right.