I am planning to ER next year at 49 y/o - part of the plan "was" to sell the house this year or next, use the equity to purchase a smaller house, & dump the mortgage payment. (We have about 200K equity in a 300K- 3400 sq ft - house.)
Well, it seems the housing slump is really messing with that plan.
Things are not so bad here in my area in housing as it is in some others, houses are selling, but prices have depressed quite a bit this past year from what they were. (Texarkana has been second for 2 years in a row on Forbe's list of fastest growing small metro areas)
We still plan to do the ER next year, but things will be a bit "tighter" month-to-month than I had planned if we have to continue paying on the mortgage. (We do have a good 4.5% fixed loan)
So I'm currently contemplating if we should:
Tough it out with the mortgage till the housing market comes back (if ever)
Go ahead & sell this year & take the "hit" on our equity & write it off to "that's life"
(Note: canelling/delaying ER is not an option due to reasons of my sanity!!