Alaska

Alaska real estate has a lot of issues. The housing market was one of the last in the nation to turn into a buyer's market, and its future is uncertain.

The Alaska economy has seen nearly two decades of growth. But the state that features America's last frontier is troubled more than many others. New taxes could hurt this once booming state's real estate markets in many ways.

There's also the question of a natural gas pipeline from the North Slope. Much of Alaska's economy revolves around the oil business, which is seeing record high prices for its crude oil production. The state's economic future is at stake, and it could have a major impact on the Alaska real estate market, which went through the worst bust of any real estate market in the nation back in the 1980's.

The fuel of the Alaska real estate market may be in trouble.

Then there's the aspect of political corruption, casting a terrible pall on the state; convictions of three former state legislators, questions of possible issues with a member of Congress, and the FBI investigation into a U.S. Senator's remodel of his home.

City	Forecast
Anchorage	− 4.1%
Fairbanks	− 5.1%
Juneau	− 6.7%
Sitka	− 3.8%

Anchorage is easily the state's largest urban center with nearly half of the state's population. Housing sales have slowed like the over-whelming majority of the country, and Anchorage is projected by Housing Predictor to see deflation of 4.1% in 2008. The market boomed for a while, but not at double digit levels like in other areas of the nation.

The inventory of homes for sale is swelling as many people wonder about Alaska's economic future, despite an increase in new businesses and a growing population, which increasingly is escaping from more urban settings. They hadn't seen a boom in Alaska since the hey day of the Alaska pipeline days back in the 1970's.

The Juneau real estate market is controlled by the buyers, and prices are falling. Too many listings sent the market for a fall and it is forecast by Housing Predictor to deflate 6.7% in 2008. It will take a while for things to balance out in Juneau housing. Home sales are on their way to falling by a quarter of the volume at their peak.

The Fairbanks market isn't doing much better. After a growing military economy boosted the community sales have slowed. Notices of default are increasing as many new home owners come to terms with adjustable rate mortgages resetting.

Fairbanks is projected to see sales slow through 2008 and prices fall an average of 5.1% during the year. As the season changes to summer the market may see a glimmer of hope in Fairbanks, but like most of the state's real estate markets its future is uncertain.

On the island of Sitka, during the right time of the year you can witness great whales frolic in the ocean. The real estate market has also slowed and should depreciate in 2008 a forecast 3.8% on average.