According to the mainstream media, there are signs that the housing market has bottomed out. Maybe, but you’d never know it from around here. Houses aren’t moving. One result is that there are more and more rentals in my neighborhood. Some houses have five and six cars parked around them.
I got my own property tax estimate for the coming year in the mail this week. The estimated value of my house for tax purposes has dropped $25,000 in the past year! Fortunately, I’m still not upside-down. My house would have to lose another $15,000 in value to be worth only what I paid for it. Even though I refinanced for $20,000 more than I paid for the house (it was worth a LOT more then, in 2005), my mortgage is at the point where the principal amount in each payment is starting to climb pretty quickly, and I don’t think I’ll be upside down anyway.
It doesn’t really matter for me. I’ll have the house paid off in 11+ years, and I plan to live in it for at least a few years more after that. Even if the value drops to zero, I’ll still have a roof over my head.
I’m so fortunate to be able to say that.