Recently, Suze Orman wrote the following in the Summer 2008 Oprah Magazine article entitled: Suze Orman, Six Money Matters to Stop Worrying about Now:
"FALLING HOME VALUES. Soaring oil prices. Sputtering stock markets. A declining dollar. It's enough to try even the most optimistic souls. My advice for coping: Ignore it all."
Regarding your home value, she went on to say the most damaging assaults on our psyche over the past few years has been the creation and operation of web sites where the site provides instanteously a value for your home. Just point in some data and answer the few questions and presto, you got your current home value. She recommends you get a grip on what really matters - the long term performance of the housing market.
In my opinion, of all your personal assets, it is clear that your home is generally the longest term investment in your personal portfolio with an expected useful life of a minimum of 5 years and in most cases considerably longer. Only the equity in a closely held business tends to be a longer investment. Accordingly, I would echo Suze Orman's advise of ignoring the short term swings in the housing market.
When it is your time to truly evaluate your home's worth, see the services of a qualified real estate professional; such as myself, and secure a complimentary CMA (Comparative Market Analysis) for getting the real picture of your local market.
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