[fintstone]

Originally Posted by jcommin

...I live in an upper income area outside Chicago. My intention is/was to downsize as my family is grown and I'm about 8 years away from retirement. My house has plummeted in value 35%. I bought my house in 1998 and I'm probably at 2001 prices...

Sounds like you are still "in the money" with your house if you bought in '98 and you are at '01 prices. people who look at homes they live in to be the piggy bank to retire on are sadly mistaken. On the other hand, you got a nice place to live without putting up with the annoyance of a landlord, a tax writeoff, the opportunity for some small appreciation. This idea of ones home funding their retirement in a new one...and not a very wise one...although some folks are luck into such a situation. Buying a home 18 years before retirement and expecting it to provide a significant amount of retirement is amazing. Perhaps 30 or 40 years might make a bit more sense. If you are like me, you probably put almost nothing dopwn on your home...so why woulkd anyone expect such a huge return on such a small amount? If you want to look at home ownership and retirement the way your grandparents likely did...you pay your home off so you can live in it without payments in your golden years when you income is reduced...not as the retirement piggybank. That is what savings are for.