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