Someone has to be stupid enough to buy an asset declining in value.

casca, if you think real estate prices are never going to rebound, or that home values will not eventually appreciate once again, then you are the stupid one. Buying something cheap and then letting it appreciate is somewhere in the neighborhood of exactly the opposite of stupid.

You must think that it's a good idea to sell stocks when the market's going down, too.

You must think that it's a good idea to sell stocks when the market's going down, too.

Actually ani, selling stock whent he market is going down is an *excellent* and highly profitable idea. If you don't believe me, talk to someone who just bought stock while its declining.

I agree with your basic principle that our housing and equities markets appreciate over time, but the length of time is a question. If you're planning to hold a stock until your retirement 30 years from now, selling at this moment is foolish. But if you are 2 years away from that retirement, is it really so dumb to want to liquidate now? How about 12 months ago?

Timing the market is a sure way to lose money over the long haul, but we'd just be ostriches with our heads in the sand if we ignore macro changes.

Casca,

Are you really that stupid ?

Just a minor note, but you might also consider that people sometimes live in the houses they buy, often for many years at a time. There's some intrinsic value to having a roof over your head. And a good deal of value in paying off a mortgage (some percentage of which is at least recoverable, even in a down market) versus paying rent, which is just pissing money away.

Such geniuses on the intertubes.

Jamie, of course time is an issue, but if you even plan on holding on to the house or real estate for 5 years, I still think that this is a time to buy. Or maybe wait a little longer until the market goes down even further. Buy at the lowest point you possibly can to maximize your potential return. I didn't think that was rocket science.

Casca is smarteest perzon on planet!