We can’t predict what will happen with prices, but the value of owning your own home goes far beyond the market value of the home.  Other benefits of homeownership include: 1) mortgage interest deduction, 2) stable monthly cost of housing (assuming a fixed-rate mortgage), and 3) ability to control your housing situation (you can make changes to your home and can stay as long as you like instead of being at the mercy of a landlord).  Additionally, historically, while other investments have gone up and down, on average, in the long-term, housing values have appreciated over 4% per year.  It’s important to  maintain a rational perspective on the market that’s not distorted by the unusually rapid appreciation rates that we saw in the years between 2001 and 2006 so we don’t forget that homeownership is still one of the most stable investments int he longer term while it also offers non-financial benefits, too.