We don't live in an area where land is a limited resource, so housing prices aren't unnaturally inflated.
Since the mortgage crisis, I've wondered how it affected us. We decided to get a new mortgage, with a lower interest rate, and had our 16yo house appraised.
Despite adding a new furnace and air conditioner with an efficiency upgrade, new kitchen flooring, all new appliances, and upgrading the shingles on the roof, and numerous other "repairs" which one would expect, our appraisal was $30,000 less than the last one we had before the crisis--from $199,000 down to $170,000.
Fortunately, we can still get the mortgage and pay off the old loan, but I'm disappointed that our house is just another "investment" on our list that is going down. With the lack of growth in our retirement investments, along with falling housing prices, I don't see how we will ever retire.
What are your thoughts? Do you think real estate will ever be a good investment opportunity, again?