The ongoing uncertainty around housing values has many homeowners on edge – so much so that they are twice as likely to monitor home prices than their own cholesterol, according to a recent survey of US homeowners by Home Value Insurance Company. The home is the biggest investment for over 60 percent of homeowners; since falling home values could continue into the near future, they pose the greatest danger to survey respondents, more so than fires or natural disasters.
That the value of one’s home would take precedence above health concerns or one’s safety reflects the emotional toll of the housing crisis on Americans. And the effects are physical too – a recent academic study found a correlation between a rise in foreclosures and increased hospital visits. The burden of making mortgage payments in the event of a job loss or other loss of income can have a damaging effect on a person’s anxiety level and well-being.
The dependence on the home as the primary vehicle of one’s wealth is a risky game to play, as we’ve learned over the last few years. The lessons from the housing crisis could lead more homeowners to seek the counsel of financial planners and investment advisers who can offer recommendations on diversifying investments. The crisis could also create a new generation of entrepreneurs, who witnessed the risks of placing one’s livelihood at the mercy of a capricious employer. The many consequences of the housing crisis have yet to materialize, but hopefully sooner than later, we’ll realize the insanity of placing a market value ahead of our well-being.
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