A collapse in housing prices would make it easier for me to buy a house. Of course, it would suck for those who already have bought one...
Cash is king, debt is teh ugliest 4 letter word there is, and never be over leveraged in anything if you have to use credit. These 3 thoughts have served my family well in boom and bust for 3 generations
I’ve got a house and it won’t suck for me. The mortgage gets paid off in less than 10 years, and most importantly it’s a fixed-rate mortgage. OK, I’m being redundant. Fixed-rate is the only kind there is. Everything else is gambling or rent. We have firm roots where we are and don’t plan to move. The value may drop slightly but it’s unlikely to drop below the balance of our mortgage at this point.
The housing market is cyclical, just like the stock market. It may have a blip where it goes down, but eventually home values rebound and exceed the previous high point. And like the stock market, you should take the long term view and not the short term panic.
There are other far more serious flaws with our economic health. Budget deficits, underfunded socialistic security mandates, trade deficits, the failure of the education system to turn out productive citizens, loss of manufacturing base, dependence on foreign energy sources not friendly to the interests of the US, the uncontrolled influx of immigrants who will be a net economic drain, crippling environmental regulation and plaintiff products liability litigation are some just to go off the top of my head.
Might also sink the economy to where you won’t have a job with which to buy said house.
Might also sink the economy to where you won’t have a job with which to buy said house.
Not much of a plus if you and 50% of your neighbors are unemployed though.
A stable economy is a hallmark of a stable society.
Banana republics are ridden with economic instability.