| As the real estate market cools off across | | | | |
| the nation, many people are getting nervous | | | | The gains you have made over the last five |
| about reductions in the value of their | | | | years or so appear to be under attack at the |
| property. There is little reason for such | | | | moment. Across the nation, we are seeing a |
| stress. | | | | pull back on home values because of a cooling |
| | | | real estate market. It is important that you |
| Staying Calm When Home Values Drop | | | | don't overreact to this pull back. The gains |
| | | | you have seen in the last few years were |
| The real estate market can be looked at in | | | | paper gains, to wit, they did not put money |
| two ways. First, you can look at the | | | | in your bank account unless you pulled money |
| movements on a monthly or annual basis. When | | | | out of your home. As home values cool, it is |
| doing so, you will see moves up or down and | | | | important to realize any loss of equity is |
| perhaps stress yourself out far more than | | | | also a paper loss, to wit, you aren't paying |
| necessary. Alternatively, you can look at | | | | anything out. |
| prices on a long-term perspective of five | | | | |
| years or more and predict where they will go | | | | A map of real estate prices over the years |
| based on historical trends in real estate. By | | | | would show a continual up trend. Yes, there |
| far, this second approach is the way to go | | | | are variations over a two to three year |
| when it comes to viewing the value of your | | | | period, but the overall trend is an increase |
| home. | | | | in property values. There is no reason to |
| | | | believe this will change anytime soon. The |
| Unless you live in Texas or Colorado, there | | | | current pull back on property values will |
| is no denying that you have probably seen | | | | pass and your home will start appreciating |
| significant appreciation gains on your home | | | | again. It may take a year or two, but it will |
| over the last ten years. The market has been | | | | happen. Relax! |
| about as hot as it ever has. Properties in | | | | |
| Las Vegas, for instance, were appreciating at | | | | If you are seeing a pull back on the value of |
| a staggering rate of twenty-five percent or | | | | your home, you should not sell unless there |
| more a year. A YEAR! On paper, a lot of | | | | is some other compelling reason. Practice |
| people became millionaires because of the | | | | patience and you will see prices rise again |
| equity gains in their home. As always, such | | | | in the near future. |
| growth could not be sustained inevitably. | | | | |