Time for Ruidoso First Home Buyers?  Or Time to Wait?

The last decade in the housing market has been, if not scary, downright terrifying at tmes. Sky high valuations, followed by precipitous crashes followed by steadily rising value. Value which now almost seem high enough again to warn of a crash. Is it over? Is their real light at the end of this tunnel or is what we’re seeing currently only a mirage, some illusory reflection from yesterday’s (the 1980s and 1909s ) heyday? So the real question becomes should a first time buyer jump in the pool or will the waters begin to cool.

At first glance, the answer is assuredly yes what with mortgage rates near historic lows and no clear signs that we've reached a market top.  And with these two factors as they are, as a percentage of income your monthly mortgage may still be near the lowest it will be in some time ... as in decades. But there are still some out there that insist home values will take a big drop in the near term. These less than cheery folks insist that their is real bottom ahead.

Well who really knows for sure? Probably neither side. We do see evidence around the Country and here in Ruidoso that investors are still returning to the market. This may be an indication to those new buyers who wait much longer that they may miss a good and  buying opportunity. And, as a first time buyer, you avoided the hit of any past dip so why not jump in while relative affordability is at this current peak? Let’s face it first time buyers. You are going to have to live somewhere and a roof over your head in all types of economic times is still a good thing. And, time is on your side. Even if you do jump into the market today and we experience another drop of say twenty percent, you’ve the time to ride it back up and recover all while enjoying the many positives associated with home ownership. 

I’m not trying to be Pollyannish my friends. There are some indicators out there that can be interpreted to portend an episode of home devaluations.  With the complexity of our national economy and its interdependence with global markets, market timing is difficult, if not impossible. Think of home ownership not necessarily as a great and always appreciating investment but rather as a quality of life issue. And how long are you willing live in your parent’s basement or put up with rental housing. Time is on your side. So be cautious but also be proactive with your life choices.