(watch here for weekly or bi-weekly updates on the state of the LOCAL Sonoma County Marketplace, thoughts, trends and more!)

Consumer debt is at a record high and unfortunately way too many consumers are borrowing 100% or more against their HOMES in order to buy that extra trinket, go on yet one more vacation, replace the 2 year old car- STOP if you can. Better yet just STOP!

Any loan tied to your home's equity is by nature an EQUITY-DEPLETING loan and you don't have an unlimited amount of equity to bank on. We are in a period of historically low interest rates so it is very seductive to borrow to the hilt. Remember- the farther in debt you are the far less room for error. One major unexpected expense, ill health, job loss and you could be homeless pretty darn fast. Why put yourself in this position? Is that trip to Hawaii so important, or the new snow mobile or dirt bike worth it? I know I sound like everyone's grandpa however consumers are shouldering outlandish amounts of debt and 3 of 4 that I see are living very very close to the edge.

Home appreciation is not a one way street (up), jobs are not guaranteed and your retirement years are going to be very bleak if you don't save (unless $800 from social security is going to provide you the retirement you desire) and your home is the best savings bank in the world- that is unless you keep raiding the bank!

Enough of my fiscal responsibility lecture- rates ARE very attractive however we are definately seeing a slowing market across Sonoma County. I know this sounds like a broken record but over $800,000 is almost at a standstill, $450,000 to $800,000 is slow and under $450,000 still has some life.

Home ownership is still an excellent investment and that is not likely to change. Save your pennies, buy a home and then protect that investment- it is your ace in the hole.

Comments, input- prudential@prudentialsonoma.com