tritium tritium:
Wow, on the average $250,000 home, that is a $20,000 hit to the pocket book. Ouch!!
$250,000 won't buy you a home, and it generally doesn't buy you a duplex either.
Plus the average homeowner bought aover 5 years ago, so they only owe about half of what the house is worth.
My Duplex was worth $350,000 last year, and I had it apraised at $315 last month for insurance purposes. I'm not the slightest bit worried about the drop in value, because I paid $135,000 in 2002.
Personally, anyone that paid $350,000 last year shouldn't have any worries either.....unless they were playing 'investor games' with their home and life savings. But even then, all they will have to do is hold onto the property for awhile. It don't matter if its 2 years or 5 years, the numbers will bounce back up, even if its just a modest rate instead of the insane rates of a few years ago.