The real estate bubble is still a hot topic these days, and many homeowners looking to sell are concerned. Look back about a decade, and youll see its like deja vu all over again! In the 1990s, home prices dropped by as much as a third in major markets from coast to coast, the result of an inflation adjustment.

Sellers, buyers and agents all managed to survive, and eventually the real estate industry experienced amazing growth, which again may need adjustment. Its helpful to realize that real estate is like the stock market, meaning its best to ride out the bumps on an otherwise smooth and profitable journey.

Home prices adjusting downward cause alarm for sellers, but just try to look at it in another way: what can be painful for sellers can be a great benefit to buyers, especially first-time buyers or families who would otherwise be unable to afford the purchase. Ultimately, this is good for the economy and for the real estate marketplace.

Its a natural law: what goes up must come down. Whats bad for one party may be good for the other. Most people selling their home will also need to buy another, so a loss experienced on one side of the transaction could very well turn into a big gain on the other. The ultimate message: dont panic.