Don't fear gradually falling prices. According to Realtor Magazine people shouldn't fear gradually falling home prices.
There is nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down, we are richer and can buy more housing. But if home prices fall suddenly that could undermine housing as well as consumer confidence and the economy.
According to Yale Professor Robert Shiller, there has been a misperception that houses will constantly appreciate. It doesn't add up to have high home prices and affordable housing. And lower home prices are what we want and people shouldn't be afraid of that. Most of us care about our children and grandchildren and these people have to buy houses so why would we want high home prices? What we really want is economic growth.
Comments(0)