Bad News, Good News, are you people stupid?

[leticia]

Bad news, says Business Week.

The less-than-festive consensus: Home prices will continue to fall in some markets, and the rate of price appreciation will slow in most places.

What they're saying is bad news is that the value of a home will not continue to inflate /just for being a home/, at least not as fast. It might, in fact, lose value.

It is saying that it is bad news /that the over cost of living under a roof is not going to increase as fast/.

The majority of Americans aren't speculating in real-estate. The value of homes only matters to them when they go to move - and this can only hurt them if they're moving from a more expensive property to a less expensive one. (Or they want to move from any area of falling-value to an area of lesser-appreciation, but assume most Americans who move do so within the same general region.)

That's right, America. Corporate Business Sensibility says being easier to own a home is Bad News.

Comments

[undauntra.livejournal.com]

It hurts people who own their homes, but haven't paid off their mortgages yet, becuse it means that they can't afford to sell -- so they're pinned in one place because they can't move. If the current market value of their home is less than the amount they still owe on the mortgage, then they'd need to make up the difference in cash if they want to move.

It also hurts people who own their homes, and want to finance a major addition by taking out a second mortgage. All of a sudden, that second mortgage won't pay nearly as much -- and just because housing prices have dropped, doesn't mean that construction costs have dropped with them. (They'll drop a little, but not as much - and there's a lag time on price corrections. For example, the housing market slowed several months before housing prices finally started dropping.)

[forsythferret.livejournal.com]

And there's a lot of people who'd taken out expensive morgatages on houses which they figured they could sell before long, and lots of people who just have morgatages they took out or refinanced when houses were more expensive. That's where a lot of people have been getting their money to basically afford living, because wages have been stagnant or falling for most of the Republican presidential eras. So people aren't going to spend as much over Christmas, which means stores are going to cut hours (only to the employees, not to the people who guessed how much the stores would make), so customers will have less money, so... Yeah.

Our economy's fucked up.