Perhaps even more than most Americans, Alaskans pride themselves on independence. So perhaps some could relate to a quote in a recent article on America's financial woes, in which homeowners were complaining they didn't want their tax dollars spent bailing out their neighbors who'd overextended by buying too much house.
Sounds good, but real estate values don't happen in isolation. The time to speak up about bad mortgage practices is while they're happening, not after the fact. Because now if that house next door forecloses, the value of your house drops. Simple supply and demand, accentuated by the effect of run-down homes on values of nearby properties. But Alaska's a long way from those troubled real estate markets in California and Florida and Nevada, so why should we worry - or pay?
A key principle of value has to do with economic factors that extend beyond real estate. Only when our overall economy is strong in terms of employment, availability of credit, and other key indicators will your real estate values also be strong. So don't be short-sighted. Your neighbor does matter. We all do.
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