For the past year you’ve probably heard all about the crashing of the real estate market, plummeting home value averages and the bursting of the housing bubble. You can stop holding your breath, because it really doesn’t look like that’s going to happen anytime soon. All that’s happening is markets across the nation are leveling out and becoming what is actually a more normalized market. Forget about the national median home value and whether it’s dropping or falling. Forget about the national real estate market, because that won’t do you any good if you decided to move.
Purchasing a new home is an investment, and you want to make sure you’re in an area where your home value is sure to appreciate. To do that, you need to look at a few key factors in that area: the economy, unemployment rates, job growth and opportunities, tourism/attractions for visitors and of course, past home value and sales trends. Analyzing each of those factors can give you a solid idea of whether your home value will appreciate greatly over the years in that area.
Most people never think of Alaska (capital city of Juneau) has a hot vacation or relocation spot, but the state definitely has a lot to offer. With a sometimes harsh climate and lots of land, Alaska is still sparsely populated, with a 2006 population of 670,053. Their economy consists of agricultural products such as seafood, nursery stock, livestock, dairy and vegetables. Their industry contributions include petroleum and natural gas, gold and mining, food processing, lumber and wood products and tourism. It may seem like a harsh and forbidding place at times, but Alaska has amazing attractions for tourism. It is one of the things that keeps the state populated and the market steady (including home value averages.)
Alaska has three major cities: Anchorage, Fairbanks and Juneau and all have typical big city nightlife for tourists interested in that: fine dining, dancing, music, theater, bars and clubs. Though perhaps not as “sophisticated” as other spots in places such as California, Alaska has a way of making everyone feel welcome. Alaska’s true call however, is to adventurers and their major attraction is something termed Ecotourism. If you want to vacation in Alaska be ready to view nature in all its’ glory, much of it virtually untouched by humans. See the various wildlife Alaska has to offer (from sea creatures to bears to moose), go sea kayaking, take a guided glacier hike, a one day cruise or even pan for gold! With it’s world famous King Salmon fisheries, Alaska is a fisherman’s dream- you can go saltwater, freshwater, fly and even ice fishing. Alaska also has a rich native history which can be explored at various cultural centers and historical monuments. Alaska has so many unusual attractions that other state lack, it is no wonder even with seasons of endless dark or light, people flock to the state every year.
Though Alaska’s unemployment rate is fairly high at 5.9% in May (5.8% in April, which was a historical low) their median household income is also fairly high by U.S. standards. According to Freddie Mac, Alaska’s median income is over $65,000, but the American Community Survey in 2005 quoted the median income at about $57,000, which was actually a drop (when inflation is considered) from previous years. The median home value sales price in Alaska the past couple months is about $325,000 while the median ASSESSED home value is at about $152,000. Basically, that means that right now higher-end housing is what is moving in Alaska, not necessarily the smaller, lower priced homes.
For the most part, Alaska has had slow increases in home value appreciation. As of the end of 2006, the average home value of properties sold was about $315,000. Like many other areas of the country, Anchorage and Alaska in general is returning to a more normal market. Inventory is still moving, but only as long as sellers are reasonable about their prices. As of now, buyers seem to be taking a bit longer making their decisions, since they have a slight upper hand in a market where housing demand has slowed. It looks as though Alaska will have a fairly steady market and appreciating home value averages, if their high household income, low unemployment rates and multiple attractions are any indication.
Ashley Lichty is a webmaster and the resident SEO of Web Xtreme, Inc. She has a background in real estate and marketing with an emphasis in writing.
Find out your own home value and other valuable homeowner information at GetMyHomesValue.com
Tags: agricultural products, alaska capital, city nightlife, city of juneau, dancing music, harsh climate, holding your breath, housing bubble, industry contributions, median home value, music theater, national median, national real estate, nursery stock, purchasing a new home, real estate market, sales trends, sparsely populated, stop holding your breath, tourism
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