It pays to invest in your house.

The sprinklings of economic recovery are seen in today's real estate activity. Recently, I have received positive communication on the state of the activity in the real estate market. Again, the real estate market is believed to be the first indication of change in the economic situation.

We are far from increasing property values due to an oversupply of inventory. However, we are active, and the activity continues to increase. This is our positive sign of recovery for the near future. I would like to review some information given to me by Binki Kaiser, a local real estate expert, from the National Association of Home Builders Web site:

Statistics show that the median price of a house in 1996 was $140,000. Today, that same home would have gained more than $100,000 in value and in most cases locally, this property would have doubled in value.

In addition to looking at the return on this initial investment, the fact that the homeowner would have paid down a significant portion of the mortgage in the interim, creates even more net worth for the owner. The initial investment would typically have been 20 percent or roughly, $28,000. The value today of $280,000 with a $28,000 investment is an impressive return.

Homes tend to increase in value while the alternatives can be extremely volatile. Believing in private property rights and home ownership, in my opinion, is living the American dream. Repeatedly, I have stated that investing in one's home is one of the safest investments for long-term appreciation and security.

Words of wisdom in this market and in any market: Do not take the equity out of your home. Leaving the equity in your home is a wise and safe move for future planning. When selling your residence and purchasing a new home, transfer the equity of the home sold to the new purchase and do not be tempted to spend the wealth you have created in home equity.

This economic situation is teaching us the safe, conservative and secure method to handle real estate. The problems of the past and present teach us the conservative ways of the future.