I know it sounds odd, but it may be a great time to sell the current home you are in and move up to a larger, more expensive home.
Here’s why. Say you purchased your home for $300,000 3 years ago and the homes in your area have decreased in value about 10 percent so it is worth roughly $270,000 today. So you chalk up a loss of $30,000.
Using the same rate of depreciation on the $500,000 “move up” home makes it worth $450,000 today. Considering this home has depreciated $50,000 you could reasonably say you are making $20,000 on the move. Also when prices begin to increase again you will see a larger benefit from the appreciation on the higher priced home. With interest rates lower than they have been in 50 years, now may be the perfect opportunity to buy the home of your dreams.
