With the prices of homes today declining (having bought mine two years ago in June)...it's clear we're all looking at what's next for the value of our homes with Gas Prices, Building Costs and food going up. Costs of living are increasing while our nests are not.
But what we fail to remember is that Real Estate is a long-term investment. It's like a stock. Stocks are to be bought low and sold high...right? Sometimes the gap between "Bought Low" and "Sold High" is a matter of a year or two...sometimes not. We're in the "sometimes not" period of the market. Homes are really long term investments. There not just retail widgets on a shelf. Homes aren't a dime a dozen products. They're intregal to the accumulation of Long-term wealth.
So...my suggestion is to buy it...put it away and don't look at it. If you do look at the house value when the market is down...you can be depressed...and when the market is up...you can be tempted to use your house like a credit card (cash out your equity).
The only time the Real Estate market should matter to you is when you go to buy or sell. If you sell in a depreciated market...you also buy in that too. We're all depreciating when it's down...and soon you'll see we'll all be going up when it goes back up.
James Knapp, Realtor
Remax, Whatcom County INC