Why have second homes and owner occupied rural housing proved more price-stable than metro housing in the last several eyars? Rural area banks were not part of the troubled, bailout banks which closed many no-doc home loans, 100% home loan financing, foreclosure sighted ARMs and low FICO score subprime home loan lending.

Second, rural economies that depended on agriculture and energy have so far been hit less hard than urban manufacturing centers and up-and-up residential markets like Phoenix and Orlando.

Third, rural housing prices were not artificially inflated by speculators or panic-driven buyers who feared that they had to buy before they were left behind.

But the last quarter of 2008 and 2009’s first six months will probably show price weakening in vacation homes and rural owner-occupied housing. Inventory of unsold property has piled up, and allcollar unemployment is squeezing everyone’s ability to carry a mortgage.