Is there a chance that the residential property you purchase today could be worth less in two years? Well, there is a study out by PMI Mortgage Insurance that covers this issue. 
History tells us that there is not a tremendous risk on average. But YOU don’t purchase property on the average. It was purchased in a particular location and that makes the difference.

Where is there the greatest risk of a decline?  Where are the most stable prices?  You can see a list compiled by PMI Mortgage Insurance Co. at the link below:

http://www.pmigroup.com/lenders/eret.html

Should all this frighten you? Not really. If you are holding property for rental, you should see rents going up following an interest rate increase. Don’t get caught up in the excitement of buying. View real estate as a long term proposition, holding a purchase a minimum of five years. There are always some real deals out there, so don’t be in a big hurry.