I recently saw an article which stated that for homeowners “their houses are like piggy banks.” But if you own your house, an increase in its value doesn’t seem to help you in any real way, since to realize that gain you’d have to sell it. But then you’d have to buy or rent another place to live, which would also cost more. It seems like the only concrete effect of a rising housing market for most homeowners is an increase in their insurance costs. Am I missing something?
In: 1833
This is why I shrug at my value going up. I’m not moving or selling for a long time.
I agreed to a price and if the value goes down i’ll feel the same way.
It is nice to see an asset appreciate though. It just depends on if you think this is the new normal or we’re in a bubble. I think the answer is a little bit of both but the days of 150k houses in any desirable city are gone forever.
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