Home Values: Did you really lose any money?

So what is all the fuss? The latest turmoil in the mortgage and real estate biz is with regards to appraised values and "lost equity". In many of the major cities, there has been, for the last four years or so, an absolutely crazy period of escalating values. Homeowners were seeing as much as 25 to 50 % increases in one year.

Well the markets have cooled, especially in these major hot-spots. Some say that the values have even declined as much as 10-20% in 2006 in cities like Phoenix, Las Vegas, California among many. So here is the issue: Did you really lose any money?

If your home doubled or nearly doubled in value during this recent boom, if there is a market correction, did you really lose money? My thoughts are NO!

It was only there if you sold or refinanced. If you sold to get to the equity, you had to turn around and buy in that same inflated market so did you gain anything there either?

These homeowners need to stop the crying... sorry!