The message delivered at a recent meeting of the Kachemak Board of Realtors by Dan Fauske, CEO and executive director of Alaska Housing Finance Corp., was the same message Fauske is spreading elsewhere across the state.
"The Alaska economy is strong and getting stronger," he told a crowd of about 40 Realtors and guests at the group's monthly meeting in Homer last week.
With regard to the housing market, Fauske compared the current climate in Alaska with the seller-market that dominated a 10-year period from 1995-2005.
"It's now more balanced," he said. "Alaska has a predictable, solid housing market that's sustainable."
That comes in spite of headlines from the Lower 48 that paint a doom-and-gloom picture. Using some of the same statistics from presentations he's given in recent months for other Alaska communities, Fauske pointed to a national foreclosure rate average of 2.04 percent, with Ohio taking top billing at 3.88. Alaska, on the other hand, claims .67, the lowest foreclosure rate in the nation.
Turning to median home values, Fauske said they have dropped more than 3 percent across the country, while Alaska's have risen nearly 4 percent.
Joyce Porte, president of Kachemak Board of Realtors, said what Fauske described is what local Realtors are experiencing.
"There are very few foreclosures," she said, adding that in terms of sellers and buyers, "it's pretty balanced right now."
Kathy Westerberg of the Alderfer Group said Fauske's presentation underscored what Homer Realtors know to be true.
"It's news that we already knew, but it was wonderful to have it confirmed that the market is steady," Westerberg said.
According to Fauske, residential sales nationwide have dropped 20 percent. Alaska also has experienced a decline, but only at slightly more than 10 percent.
Locally, that slowdown is due to a decrease of sales to out-of-staters, according to Terry Yager of Re/Max.
"In our market down here there is a slow down in people from the Lower 48 coming up and investing in second and retirement properties," Yager said. "That's because the economy is tightening up and that's affecting our part of the market."
A statewide building code was championed by Fauske for several reasons, including the code's ability to ensure marketability. Bruce Petska of Big Mountain Builders in Homer agreed.
"It's a win-win deal because whoever buys that home on the secondary market is at least assured their investment is protected," he said.
Yager, however, wasn't so sure.
"We Alaskans love our freedom and part of our freedom is being able to come up here and build our little log cabin in the woods and have the freedom to do that where we don't have all the government rules and regulations they have elsewhere," Yager said.
When it comes to marketability, Yager said lenders in Alaska are "very experienced in dealing with older, noncompliance homes."
All in all, Fauske painted "a cheery forecast for Alaska," said Bryan Zak, a broker for Zak's Realty.
The glow is due, in part, to $300 million given to AHFC by the Legislature this year for weatherization and energy rebate programs. Asked about it at the meeting, Fauske said AHFC is currently examining the legislation, which has been signed by Gov. Sarah Palin and puts $200 million into weatherization and $100 million into home energy rebates. Information will be updated on AHFC's Web site as it becomes available.
The intent of the funding is to help Alaska homeowners cut energy bills through energy-efficient improvements. Qualified Alaskans would be eligible for free weatherization, while others may take part in a home energy rebate program. Both programs require energy audits to determine which energy improvements are best suited for a home.
Once completed, a follow-up inspection audit is conducted. Training requirements for those performing the work are included in the program.
Information on the programs can be found on the Web at www.AHFC.state.ak.us.
"The Legislature wants the money out there, working," Fauske said.
McKibben Jackinsky can be reached at mckibben.jackinsky@homernews.com.
mckibben.jackinsky@homernews.com.
