According to Zillow.com, my house is now valued at $96,400 (with a range of $79,000 to $122,000). The fact that I still owe over $113,000 on it makes me a little sick to my stomach. And that does not include the $25,000 I have spent in renovations and improvements over the last 5 years.
This week, I read about the housing market and the double dip thing, and cringed. Housing prices could drop another 25% before we reach bottom. Which means (according to Zillow) I could be looking at a value of $72,300 (with a range of $59,250- $91,500) by the time the market bottoms out. Worst case scenario, my house will be worth $59,000 and I will be underwater by over $53,000.
I have no idea how long the real estate market will take to recover, or when my house will ever have equity. Many folks in my situation would consider a strategic foreclosure, and some have urged me to walk away from my very underwater homestead.
I won’t even consider it.
I borrowed the money; I will pay it back, because it is the right thing to do. But that isn’t the whole story.
You see, I love my house. I never thought I would own my own home, and I love it. I love my pool, I love my brand new bathroom, I love my pretty kitchen. I love my piece of the American dream.
I also didn’t buy this place as a short term investment. I bought it as my forever home. My nomad days of 25 addresses in 10 years are a thing of the past. So unless something happens to drastically change my situation, I am staying put, making improvements and loving my home.
And staying off Zillow…for my sanity…
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