A reader sent me this:
"Roger guesses the house is worth 10 percent less than it cost to build--and he's worried its fall has just begun. "I have personal angst," Elliott says. "Yes, I built this fantastic house. My wife loves it. Everybody in the neighborhood thinks it's great." But it was a house built for appreciation. Now that prices are falling, he wishes he'd built something far more modest."Sick. Just sick. Houses are places to live and raise a family, not investments, not to be treated like stocks, or at least they shouldn't be. I know I am naive. But I feel terrible for all the people who just wanted a decent place to call home, a place to raise the kids, and yet who have been priced out and/or over-extended with crushing debt due to the aggregate behavior of these sick, greedy specuvestors. This is why investment in houses should be curtailed in my naive point of view.
And, check out this journalist following her house price like a stock:
This summer New York Times columnist Michelle Slatalla described how she had begun checking the value of her Bay Area home (using sites like Zillow and Cyberhome) every few hours. In a recent two-month period, the Web suggested her home had lost $92,248 in value. "I really, really need every tiny bit of information I can get about managing my biggest investment,"