I recently had the good fortune of listing a home in Marysville that is owned by the original buyers. They bought the home in the late 1980's for a price in the mid-80 thousand range with no money down. They raised their family in the modest 3 bedroom rambler and now find themselves "empty nester's". The best part is the home is paid for and they resisted the urge over the years to re-finance and spend their equity.

These folks plan to take an early retirement, move to a warm climate, and enjoy the hard-earned fruits of their labor and wise investing in their home. I wish I had been so smart and frugal. When escrow closes they will get a check for well over $200K.

The point is this. Even though home values have decreased slightly over the past year, in the long term owning your own home is a wise investment. The odds are in your favor that in twenty years from now you will have built a similar retirement nest egg.