Housing Bust?

4 of America's nastiest housing busts - MSN Money

The housing bust that most affected the Ruidoso area was the Texas unemployment crisis of the '80s, caused by falling oil prices. The current housing bust, caused by careless lending practices, has had very little effect on our property values. Ruidoso area homebuyers were not the high risk mortgagees we've seen revealed in so many metro areas. They are largely second home buyers or retirees. Perhaps because we are not seeing many homeowners desperate to sell, the Ruidoso housing market hasn't seen a dramatic drop in home values. However, the general panic that has rippled through the economy since the foreclosure earthquake and the credit freeze has certainly affected the pace of sales. Perfectly wonderful properties are languishing on the market, waiting for willing and qualified buyers.

The good news is: if you have money to invest in real estate, you can add Ruidoso, NM, to your list of stable markets. Chances are good that your investment will be safe here and will grow steadily in value. Our tourism economy relies mainly on Texas oil -- as goes the oil industry, so goes Ruidoso. Even with driving travel supposedly down, several weak winters in a row hitting our ski season, and unemployment in the construction industry, the Ruidoso economy is holding up. We have a loyal tourism base rooted in family tradition, and most our residents are seasonal / retirees.

The bad news is: if you don't have much money and you're looking to build something for your future in the form of real estate, most worthwhile properties in this area are still out of your price range. I got lucky. I found a great old house for less than $130,000, and we are using our tax credit to help us manage the mortgage during the first year. It can happen, and I encourage everyone here who's paying $800-$1,000 a month in rent to visit their bank or mortgage broker. Get pre-qualified for a loan -- ask about FHA, MFA and the first-time homebuyer's tax credit. Then start hunting for a site-built home that can be purchased for under $130,000. There's no housing bust here, but those deals are out there.