Consider This

Many Homeowners are waiting out the current economic storm. Some of them want to sell their present home and then buy a ‘move-up’ home. Consider why they'd be comfortable doing this in an up trending market but not in today’s market. Which market is better for this homeowner?

2007 Market

Homeowner sells his present home for $446,000
Homeowner buys his move-up home for $726,000
This Homeowner spends $280,000 to move up.

Today’s Market

Homeowner sells his present home for $375,000. At the “height” of the market it was worth $446,000. It has come down 16%.
Homeowner buys his move-up home for $610,000. At the “height” of the market it was worth $726,000. It has come down 16%.
This Homeowner spends only $235,000 to move up.