ABQ RATES HIGH FOR REAL ESTATE INVESTMENT

Forbes magazine this week ranked Albuquerque among one of the Best Housing Markets for investors. The housing health of a city is affected by a lot of factors including the jobs picture and the rate of vacancies and foreclosures. But some cities where home prices have been battered look like great buys for investors, a good sign that in spite of deep declines, they might turn around dramatically.
Two years ago the idea of putting money behind real estate ventures seemed too risky for even the most reckless of capitalists. But investor skittishness about the real estate market is slipping away, and speculators are seeing value in distressed markets
Those cities, like ABQ, that didn't see the same dramatic run-ups in prices as many cities did between 2001 and 2006 were spared a corresponding bust. They are also buoyed by a mix of jobs that's weighted toward growth industries like government and education.
But investors aren't just looking at the jobs picture, and neither should families seeking promising cities in which to live. One of the characteristics of a city poised for a comeback is a population that was booming before tough economic times made relocating difficult for most American. Albuquerque, N.M. is on the list because it grew by 9% before the downturn hit. "These are markets that in the past year have had turndowns but we think they have longer-term potential," says Wizner. "Markets with longer-term prospects in general had above-average population growth between 2000 and 2005."
Although much of the housing crisis fallout has already occurred, investing in residential real estate is still dicey, and valuations are trickier than ever. Wizner says that's exactly why real estate is becoming exciting again.
"You tend to get the best bargains in the market when nobody knows where price ought to be," he says. "The question is no longer which are the risky markets. Now that that adjustment has taken place, it's what's going to happen from here on in."