Here’s a post from a BC homeowner with a very sensible outlook. They are, however, in a small minority. A far larger group of home owners (and particularly, the last decade’s buyers) are (a) anticipating ongoing RE price gains, (b) sitting with a very significant percentage of their net worth tied up in their homes (oft times >100%), (c) very, very far from having their mortgages paid off, and (d) dependent on their home equity for retirement. -vreaa
This from Keh at greaterfool.ca 8 Jan 2010 1:44 am –
“I’m one of those BC homeowners who expects to see my house value go sideways and/or down for the next 5-10 years. I’ve resolved myself to that and am not selling because a) we love our house, and b) we’re comfortable with it’s place in our overall asset mix and c) are fortunate to have paid it off. Our challenge now is to make the most of a nest egg to generate long-term income. I’m not looking for guaranteed double-digits, just a mix that will earn a few points better than inflation over a timeframe of a decade or two or four. 2-3% over inflation – fine. 4-5% and I’m over the moon.”