If not, you probably haven’t been paying attention for the last few years.  But that can be said about virtually ALL real estate markets.  The values of your home and mine here in Toledo, Ohio, have declined in recent years, but hasn’t that been the case with everyone’s 401(k) as well?  My own opinion (which is worth what you’re paying for it) is that it would be a great mistake to look at housing primarily as an investment.  Our homes were never intended to be piggy banks from which we could periodically extract some equity to spend on lavish items. 

So why should we be bullish on housing?  Lots of reasons.  Most basically, our homes are our shelter, and that has great value.  You can’t live in your stock portfolio. Others pay rent for their shelter, and their rent is gone forever.  But we also buy homes for other great reasons – they may be in a neighborhood or school systems that we prefer, or an easy commute to our employment.  When you own your home, you don’t have to ask permission from a landlord before making alterations. And home ownership still enjoys favorable tax treatment (but keep an eye on Washington!).

Warren Buffett, who knows a thing or two about investing, is well known for this concept (sorry I don’t know the exact quote) – when others are running scared, that is the time to be bold.  If anyone questions whether that time is now for housing, I would offer one more extremely important factor that should tip the scales toward buying – mortgage interest rates are the lowest that I have seen in my 42 years at Danberry!