Alaska Recession: How Bad?

[Gabe N.]

A good friend of mine and I were having a very interesting discussion on the real estate market here in Alaska. His premise is that the recession up here is going to cause such a contraction in prices on multifamily property that pricing is going to drop 15-25% in the next two years. Personally I am a little more optimistic and I would be surprised if prices drop more than 10%. I also just bought a 4 plex because of my optimism and he thinks that was a foolish move and he is waiting until the market hits the bottom before buying. 

Anyway, what is everybody's prediction of our market? How low is it going to go before rebounding?