Alaska has fared well relative to other states when the recession began in December 2007. This comes after strong showings since the 1980’s. The oil industry has continuously provided employment among locals but home sales slowly fell last year albeit less severe than other states. It must be remembered that two decades ago, the state has been subjected to property busts and it may very well occur again this year.

RealtyOulook.com still puts its confidence to the banking institutions in the state that remain repulsive of the credit crunch. With massive capital reserves, they can infuse loans to local companies that remain loyal to Alaska by retaining their investments in the state. That could provide more jobs and help spur healthier sales in the real estate market.

Anchorage’s home prices may be increasing but the plunging oil prices have hit the city’s oil industry. Americans ironically travelled less especially during the holidays even with cheaper fuel. That provided less income to the city compared three years ago. Because of this, home values will start falling as early as the second quarter.

Juneau has been a favorite among home buyers until the crash in home prices last year. That produced an unprecedented spike in housing supply. The burgeoning tourism industry cannot even help the local economy. Buyers must expect home purchases to even take a slower pace as prices deflate by 7 percent this year.

A large percentage in the population of Fairbanks is employed by the government who are eligible for federal loan guarantees. This entices more mortgage providers to offer their services to homeowners. This year, the city’s housing values are forecasted to go down by 5 percent though.

Brokers are finding a hard time to dispose the growing house supply in Anchorage. Foreclosures are filed at even a faster rate while buyers remain few in the area. For this, RealtyOutlook.com forecasts the city’s home values to slow down by 6 percent.

Finally, Sitka, the largest incorporated area in the United States, experienced growth in house purchases a few years back. This is attributed to its ideal environment for education and tourism. However, the effect of the crisis has not gotten by without lowering the borough’s home values. Compared to the two cities, home prices will only dip by 4 percent.