"Because of the power of leveraging, a $10,000 (investment) used for a down payment on a typically priced home in the US at a typical home price appreciation of 5% will return $110,000 after 10 years. The same $10,000 invested in the stock market appreciating at 10% annual increases will result in $23,600. No wonder the data from the Federal Reserve shows consistent results year-after-year of the staggering difference in net worth between homeowners and renters. A typical homeowner had $184,000 in net worth verses only $4,000 for a typical renter.

... It's also important to point out that times of crisis often turn out to have been times of opportunity in hindsight. With over four million net new job additions in the past two years, the time frame during which home sales have steadily fallen, a significant pent up demand has developed. Home sales and home prices will be higher in 2008 compared to 2007. And, as with any investment, look longer term. Those investing in a home and keeping it for a typical holding period of six to ten years will likely see their investment pay off; those homes will have been a good investment."

- excerpted from The Long View by Lawerence Yun, Vice President National Association of Realtors Research