I've been working with a few folks lately that are considering this time in the market as an opportunity to trade up to a larger home. The numbers make sense.
If home prices dropped by 5%, here is what it would look like if you decided to trade up:
Home Price: $200,000 Home Price: $400,000
Sell at $190,000 Buy at $380.000
Loss = $10,000 Savings = $20,000
The smaller loss at sale will be compensated for by greater savings at purchase, resulting in a significant net gain.
If you have been considering a trade up to a large home, consider your numbers and if this is the right time for you.