Remember that the whole purpose of these financial games in Washington and in the banking industry is to prop up the values of these homes so the underlying mortgages retain their value. This is how you end in a bizarre situation in some metro areas where empty-nester Boomers are living in homes that have a “market value” of $500,000 or more, but nobody can afford to buy them.
I know of areas all around Houston where 3 years ago people couldn’t sell their homes for $200,000. Now they’re getting up to $500,000. I know of a neighborhood of new homes that started in the 90s in 2009 that was starting at $160,000 when they finally sold out. It’s crazy.
I’m also seeing more and more “for rent” signs in my neighborhood. That ain’t good.
Fortunately, unlike most “boomers” I have been in my house. It was a house I bought that below my means.
Of a lot of financial decisions I made in my life, this one was one of the best. Buy it. Make it nice. Stay in it.
I dont look at my house as an “investment”, but rather it will be a nice place to live when I dont have a mortgage.