The state of Alaska has faced for the first time the highest level of foreclosed homes on single-family homes in the last five years. According to the report of Alaska Department of Labor and Workforce Development, Anchorage, a city of Alaska, was founded with a 166 percent increase in foreclosed homes from 2005 to 2007. This increase in the rate of foreclosures started of a few years back. It is assumed that the rate of foreclosures in Alaska will continue to rise. If so, then that will be a hard time for the real estate industry of Alaska.

The problem of foreclosed homes is also detrimental to the economy of the neighborhood. The state officials failed to recognize any major problem in Alaska towns last month. A total of 435 foreclosure case has been arrested between January and June. This figure is considered to be the highest for the first quarter since 2003. The homes facing foreclosure are sold at a very low price by the banks. This also brings down the value of real estate in the neighborhood.

However, good news is that the rate of foreclosure in Alaska happens to be the second-lowest in the country regardless the situation that there has been a rise recently. President of the Alaska Mortgage Bankers Association, Gail Stafford said, “We’re in an enviable position up here,” During the first half of 2008, less than a percent of the mortgages in Alaska were under a foreclosure situation. Stafford has said that the sound economy of Alaska has saved it from suffering heavily. Another thing is that the value of homes in Alaska has not dropped down to that extent as has been the condition in other parts of the country.

The people of Alaska who have borrowed subprime loans have not led to major foreclosures in the state. This is a good sign for the real estate market of Alaska. A comparatively stable economy together with flat home prices have been probably instrumental in making this situation happen. People in other parts are struggling with risky loans and are facing foreclosure notice on their home.

According to real estate analyst Niel Thomas, “The economy is strong enough here that people have enough money to keep their house and their payments going,” Brian Lauren, who has penned the Alaska report on foreclosures has said, “In general, our economy has been growing steadily for two decades now”.

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