The economy is as bad as it has been in any of our lifetimes. There is a lot of discouraging news. I’ve been presenting some of it in this post.
If you loose your job, or illness strikes and takes you out of the job market, that’s one thing. However, if you are healthy and working, you may not be in such bad shape.
Here is a personal story that may be encouraging.
I bought my first house in March of 1980. I was told that I got the last fixed rate mortgage that would ever be seen on this planet, and that I was very lucky to have gotten it. It was at 12% interest.
I only heated one room in the house and could barely make the payment. I was lucky I had a job that was reliable. So, I hung on.
Over the next eight or nine years, that house was never worth as much as I paid for it. The house met my needs, but if I wanted to leave I would have had to buy my way out. That prospect held no appeal, so I stayed there and kept making payments.
When the market is down for some time latent demand builds. When the market starts rolling along again, it often takes off with some energy. Eleven years after I bought that house, it sold for 45% more than I paid for it. That is around a 4% per year increase. Not bad. But, it took patience. I never missed or was late with a payment.
So, if you can hang on, just ignore the current value of your house and live your life. If you are forced to make a move now, it will likely be tough for you.
But, as they like to say, “They aren’t making any more of it.” (Real estate that is) Yet, the population is growing. The Portland Metro area is anticipated to grow by about a million people in the next 10 to 15 years. The value of your property will rise.
Good luck.
Pacific West Appraisal Services, Inc.
pwas.net