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From the L.A. Land blog over at the LA Times reads the following on homeowners' losing values of their houses.
A Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner 85,000 in lost wealth this year alone.
The projections by the Center for Economic and Policy Research are based on the numbers in Tuesday's Case-Shiller home price index, which showed accelerating price declines in most big cities.
I agree it is a great loss of wealth in a short period of time. But it would be interesting to see how much wealth the average homeowner has accumulated in the past 5 years even with the recent drop? Or the past 10 years? I would bet that even with the deflation in home values taking place right now, many people are still seeing a very good rate of return on their homes in the long term.
Source: By Ideal Investment Corner Important Site links:
http://idealinvestment.blogspot.com/