Paper vs Real Money Real Estate Values

Not a weekend goes by when I don’t talk with someone stressed out about the fact their home is losing value. They grind their teeth and mutter about the fact the price is down 10 to 15 percent. When I ask them if they are having problems with the mortgage, they say no and I wonder why they are so stressed. It emphasizes the importance of paper vs real money losses or gains. If you own a home and are comfortably making mortgage payments, there is no reason to stress out at all. Yes, your property has probably lost some of its value, but it will come back. You are poorer on paper, but not everyday life. This market will rebound. It might take a year or two, but it will. As long as you can make the payments on your mortgage, you’ll be fine.