Consider lessons learned from the last recession

Housing sales nationally are at or near record highs.

It doesn't take long during a rapidly appreciating real estatemarket to forget about the late '80s and early '90s when home-priceappreciation didn't keep up with the national inflation rate. Realestate markets in many parts of the country suffered downturns.

What we learned from the last real estate recession is that realestate is not immune to downturns. It's cyclical, like any economicmarket. Historically, home-price appreciation has beat inflationover the long-term. But the long-term usually is measured in termsof decades - 20, 30 or 40 years. If you plan to own your home fordecades, rather than for a few years, you probably can ride out therecessions, sell during an up market and come out ahead - that is, ifyou have the flexibility to sell when you want to.

Not all homeowners have the opportunity to time their home buysand sells according to market conditions.

First-time tip. Many homeowners refinance their home when themarket is hot. They often push the appraiser for the highest pricepossible. Then they pull as much equity as possible out of theirhome.

Sometimes the money goes for retirement, tuition, investments ora medical expense - realistic or necessary expenses.

Too often, homeowners waste refinance money on frivolousconcerns. Real estate broker Dian Hymer writes from Oakland, Calif.