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When one thinks of Alaska, a picture of freezing temperatures and barren space may come to mind, however, the Alaska real estate displays  many remarkable natural wonders. The last few decades has seen enormous growth and stability in this often misinterpreted land of wonder.

Although Alaska’s history dates back several hndred years, it became a US interest in the mid 1860s and less than a century later, a US state. Alaska was purchased from the Russian Empire for about .2 million dollars, this made the Alaska real estate valuation about 2 cents an acre. The majority of Alaska real estate is still owned by the US government, however, the available real estate is much prized for it’s glorious landscapes and breathtaking scenes. Click here for National Trust cottages.

Although the perception that Alaska is mainly cold, the summers can have temperatures reaching into the 90s°F especially in more populous areas such as Fairbanks. Areas in the central and extreme north which are largely unpopulated and undeveloped receive the coldest temperatures.

Large businesses seeking untapped areas for expansion have looked to Alaska real estate for opportunities. Wal-Mart, Costco, Sam’s Club and other big-box retailers have opened for business in Alaska. Another economic stimulus for Alaskans is the Internet, bringing products, once nearly unattainable, right to their doorsteps.

The desire for Alaska real estate goes beyond the natural beauty and often seen wildlife, as sportsmen look to Alaska for hunting and fishing adventures. An abundant amount of real estate agents are at the ready to supply these sportsmen with cabins, lodging or hunting properties to engage in their recreational sport}. The public is free to use the more than 3 million acres managed by the United States BLM (Bureau of Land Mgmt.) for hunting or fishing. Check out a National Trust cottage.

Besides the opportunities in fishing and hunting the great white north, Alaska is ripe for expoloration as it is home to the largest state park system in the United States. A lot of snow-related activities like snowboarding, skiing, and snowmobiling are favorite past-times~Many other outdoor activities such as snowboarding, skiing and snowmobiling are available in many areas~Other recreational opportunities that are plentiful throughout the state are the various snow-related activities}. If a view of the magnificent ocean is to your liking, you may also want to embark on an Alaska Cruise. Although a favorite of many tourists, it is also a great get-away for residents.

Alaska offers a virtual unlimited amount of activities to keep you occupied, whether you are looking to own Alaska real estate as a permanent resident or as a vacation retreat. The peacefulness of the natural surroundings in Alaska are far beyond many other areas, and the fact that this undiscovered state is as well advanced, make it an ideal place to call home.

Boulder, CO is one of the best places to live in the United States. You can enjoy the great outdoors, be close to Denver and see the splendor of the Rocky Mountains. Best of all, you have access to one of the best transportation hubs in the country, as well as a major metropolitan area.

Boulder also offers a lot for people who want to start a family. Currently, prices for single family homes are very low. You can find a great new or one owner home that will only cost you around $150,000. However, in the past few years home prices were very high in this area. You will not likely find prices going back down to the previous lows in the near future.

For those who do want to get out and enjoy the great outdoors, Boulder offers some of the best outdoor activities everywhere. Hiking and biking are very popular in the summer months, and nearly everyone skis during the winter months. Vail and Apsen are not far away, if you want to try skiing on some truly famous slopes. Most of the area around Boulder does get a fair amount of snow, due to its altitude and the conditions of the Rocky Mountains. Activities on the water include fishing, kayaking and swimming, especially during the warm summer months. Unlike some areas of the United States, Colorado does get all four seasons throughout the year.

Another great thing about Boulder is that it is close to Denver. While living in Boulder gives you the ability to have a nice home and large yard as well as other environmental benefits, Denver is important as well. For people looking for a job in the area, Denver is home to offices for many major companies including Intel, Level 3 Communications, and Einstein Bagel company. The Denver area is one of the fastest growing areas in the entire United States because of its central position as well as the availability of large tracts of land. Many more companies are poised to move to Denver in the near future, or open up an office to have operations in Denver. Will your company be one of them?

Boulder lets you step back and relax from the fast paced life of Denver. Being able to just sit around your home and not be constantly busy is a wonderful feeling. Boulder also allows your children or spouse to get the lifestyle that they have dreamed of. It is easy to simply sit back and enjoy the glorious Colorado weather all year round. However, if you need a job while you are in Boulder, there are plenty to have in Denver, Boulder, and the surrounding areas. Home prices are startlingly low, allowing you to capitalize on the market. Do not move somewhere else simply because it looks nice, take the time to experience the potential new location. It is going to be next to impossible to resist Boulder once you check it out!

It seems that the real estate bubble has burst, but how did home prices get so high anyhow?

While visiting San Francisco and the surrounding areas recently (2008), my wife and I were amazed at the prices of houses. A two bedroom home which might sell for $100,000 where we come from in Colorado was sometimes $600,000 or more in San Francisco, Monterey, or Santa Cruz or San Jose. And these high prices were after the real estate bubble burst. At least that’s what we thought. But apparently parts of the San Francisco Bay area were still seeing rising home prices.

Other areas of California have been hard hit of course. Some towns have seen prices drop in half in a matter of a couple years – not surprising to the rest of the country, where we all wondered how such prices could be sustained. Still, how did they get so high in the first place? Homes that average a half million dollars or more for a whole population? Some of those buyers must work at regular jobs, making only $30,000 to $40,000 annually. It didn’t make sense. Or did it?

Several factors lead to high prices. Some of them are still in place, which could mean that prices might not fall much more. Or it could mean that if and when those factors change, further big declines are on the way.

High Home Prices Come From Low Interest Rates

Take out an amortization book or find one of those payment calculators online, and see what the payment would be for your home if you had a 13.5% interest rate. People were paying this much in the early 80s. For example, a 30-year loan of $200,000 would cost you $2,292 for principle and interest each month.

Using that payment, see how much you can borrow at a 5.5% interest rate – as low as my old amortization book goes. Paying the same each month, you could borrow $404,000. If you are following the math here, you can see that the sales price could be twice as high, and yet you would pay about the same each month. Obviously low interest rates allow people to pay a higher price. There is more to it than that, of course, since prices certainly more than doubled in most areas since the 1980s.

Income Went Up

People are obviously able to pay more for housing as their income rises. Those who rent might be interested in owning a house when they start making more, driving demand, and therefore prices higher. Average income in this country was rising for a while. But that still doesn’t quite explain the extremes. How, even with a decent income of $60,000 per year, does one afford a $600,000 house?

Expectations Changed

The real estate bubble seemed to cause people to think home prices could rise faster than inflation forever – something a mathematician could refute in two minutes. They were convinced that homes were a great investment at any price. So while devoting no more than 30% of your income to a house made sense before, buyers started to spend up to half of their paycheck on a mortgage loan payment.

There was a frenzy to get in on the “game” while home prices were rising so fast. A couple might not actually be able to afford a house, but they could buy it with easy credit terms, drain their savings to make the payments for a couple years, and then sell for a profit before they ran out of money. Speculation like this became especially common in California and Florida. The result? Some made money doing this. But with prices falling, there are record rates of foreclosure, and the game is over for now.

High Home Prices – Other Factors

Easy credit allows more people to buy. That helped increase demand, and pushed prices higher. In the past, even those with a decent income had to save for a down payment, but no-money-down mortgage loans changed that. Interest-only loans – half the loans made in California at the height of the bubble – kept monthly payments down. The $2,292 mentioned earlier pays for a $500,000 loan if you need only pay interest.

There’s another factor we discovered while in San Francisco. We were told more than once that people are sharing houses everywhere. A NASA engineer said that when he lived in San Jose, most of the homes in his suburban neighborhood had four families living in them. There might be six or more incomes helping to make the payments on the house.

The latter factor is a cultural phenomenon (most were Asian or Hispanic). Many people born here don’t like the idea of living with other families, or living several to a room. Still, those who are willing to do so have found a way to afford a $600,000 home. These buyers and the additional demand they create may contribute to the high home prices in some areas.

Finally a big part of the answer to how people can afford high home prices is that they can’t really. We’re seeing record after record being set for foreclosures across the country, and if we see interest rates rise in addition, we’ll see those real estate prices drop even more. Of course cheaper homes are great for those who have yet to buy.