Tracy Byrnes
So put things in perspective, and remember: Your home is not a stock that could become worthless and potentially delisted. And just because the market in your area is down, say, 10% doesn't necessarily mean your home is too, reminds Gumbinger. Have you gotten your home appraised lately? Well, do it before you abandon the ship. You may be pleasantly surprised.
Prices fluctuate over time. And of all the assets available to you in this trading-centric market, your home is most certainly a long-term asset. Most people clearly don't hold a home for six months or less on purpose. So think longer-term. Prices are already expected to increase by about 2% in 2008, says Gumbinger. So, let's say you've lost 10% on a $100,000 home. Your home is now worth $90,000 on paper. But the end of next year, you'll already make back about $1,800 of your $10,000 loss. Hey, it's something. That's why most pros will tell you to think in five-year increments when it comes to the housing market. "It will typically take the market about five years to even out the bumps," notes Gumbinger. And the more money you put down, the quicker you'll see your profits. So unless you are forced to move because of situations beyond your control, I don't see a compelling reason for people to cut losses and run today. Sell your home because you want a bigger backyard for the kids, or because you've been dreaming of that master bedroom suite. Not because the price is down and your paper losses are making you sick.
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