BEST ANSWER
FIRST ANSWER
There are all kinds of variables to whether or not any market is a "good" one. Most of the response is based upon your wants and needs. Here is my generic response to buying a home - based upon growing up in the Real Estate industry.
If you are basing your personal economic future in an area, then you must feel that it is one in which it is worth living and spending your money. Since you are going to be spending money on housing anyway, the question then becomes, "how much money can/ do I want to spend on housing. If you are pre-qualified with a lender for money at a certain amount, and that amount will meet your living standard needs whether you rent or buy, then it is probably worth buying a home.
I say this because renting is generally money paying someone else's mortgage(s) and/ or property maintenance and improvements. If they are responsible owners, it is also improving their credit standing.
Consider the point that in three years of ownership the deducted interest value from your taxes and the amount you spend on "rent" (house payment plus insurance and taxes) will PROBABLY result in at least a break-even point. I consider a break-even point one where the amount I expended improves my credit standing, the benefit of living in my own home, I have been able to maintain (and possibly improve it) and it doesn't cost me one penny to move out. Anything above that becomes free and clear profit (it is my understanding that there are no federal taxes on personal home sales, and Alaska has no taxes on that [yet]) which I may use in whatever way I choose (next home please).
Then look at the fact that there are very few remaining areas for builders in Anchorage to build. For the 27 years I have lived up here I have read that the need for more housing in Anchorage is reaching critical mass. So, there appears to be a built-in appreciation factor (more demand, less availability).
Short answer - yes, it is probably a good market to buy into.
Tue May 19 2009, 13:13
Fair Housing and Equal Opportunity