Alaska Is Lowest Risk
This beautiful sunrise photo was taken just outside the RE/MAX of Wasilla office about a month ago. I’m not sure if the real estate sun is rising as well, but Countrywide Home Mortgage apparently feels that Alaska real estate is among the lowest risks in the country.
Countrywide recently published a list of soft markets across the country. Over 1,000 counties were rated high risk, (a 5), down to the lowest risk, (a 1). The Anchorage, Mat-Su, and Fairbanks boroughs were all rated a 1 on this list. Click here to download the pdf document from blownmortgage.com
Just because Countrywide says it doesn’t mean that it’s true, but I do agree that the Alaska economy is somewhat independent. Since we are primarily an oil economy, a mini-Saudi Arabia, our economy is more dependent on the price and production of oil than on any other economic activity. However, we don’t have a seemingly unlimited supply as does that desert country. Our production is slowly ebbing and we need to do something to replace that part of our economy.
The average sales price for all of 2004–2007 is shown in the chart to the left. As you can see, we had a big jump in prices between 2004 to 2005 and after then the increase has been more modest. Most appraisers seem to think that the prices are holding steady or slightly increasing.
It does appear however, that prices are weakest in the high price ranges. Those would be the prices above $350,000. Sellers need to price their homes competitively in any price range, but the higher the price, the stiffer the competition.
For more detailed info, feel free to call me on my cell phone at 907 232–7900.