Real estate investors and home buyers in the state of Alaska have been hit hard by the collapse of the oil and gas industry.
Alaska real-estate investors and housing sales are down.
Alaska home sales fell nearly 30% last year.
A home-ownership rate of only 63.7% was the lowest in the nation.
In a report released by the National Association of Realtors, Alaska was ranked the worst state for real-property sales, with a median sale price of $1.8 million, or less than half the national average.
The NAR report also said that home-buying has been a struggle in the Alaska economy, with fewer new listings for homes.
“Despite the downturn in the oil industry, Alaska continues to have one of the highest home values in the country,” said Mike Wintz, president and chief executive of NAR.
“Real estate investors are not taking any chances.
This means that there are less available homes to buy, and the price of the home itself is rising.”
Wintz said that while Alaska real-net sales have been down for the last few years, the industry is starting to rebound.
Alaskan real-nursing homes have been in decline since 2008, according to the NAR, which said that the number of nursing homes in Alaska is down by nearly 80%.
Alaska has a shortage of affordable housing, with many homes priced above $2 million and the average cost of a home in Alaska was $1,062,932 in March, according the Nars report.
NAR’s Wintaz said that, while some of the states worst economic problems are still behind us, a strong rebound is possible.
“We expect the rebound to be strong, because we have a shortage,” Wintes said.
“We have more available homes and more affordable housing in Alaska than we did in the past.”WINTZ also said the downturns in Alaska’s housing market are likely to be temporary, with the industry recovering from the energy industry shutdown.
He said that some of these states’ housing bubbles will pop back, but most will be built in a way that helps stabilize the economy.
Wintaz also noted that Alaska has been struggling with the aftermath of the devastating wildfires that hit the state last year, and he believes the state’s recovery will be similar.
“I think that a lot of people have been able to bounce back,” Wints said.
However, Wintos outlook is not all positive.
As Alaska continues its recovery, Wints expects to see the housing bubble bubble in Alaska pop back.
More than a third of the state has now passed the $1 million threshold for a home, according Topp said.
Wintes also said it is not uncommon for the energy sector to crash the market.
After a brief boom in oil production, it all came crashing down, he said.
Wints believes that the energy bubble will pop, but that it will take time.
According to Topp, a lot will depend on how the oil-and-gas industry responds to the ongoing downturn.
If it is able to return to full production, he thinks the industry will be back to pre-recession levels within two to three years.
While the industry has a long way to go to recover from the devastating fires, Wits is optimistic about the future.
“[Energy] is just a different form of transportation,” he said, referring to oil- and gas-based vehicles.
There is still a lot that needs to be done in Alaska.
But as he puts it, the oil boom is finally over.
When it comes to home buying in Alaska, it may be time to start planning.