Sunday, August 30, 2009
The Advantages of a Falling Market
More than a quarter of people don't live in a house they own. Some of these folk aspire to do so. For them, the greater the fall in prices, they happier they are: a home of their own comes within easier reach. "Many home-owners would like to trade up - move to something with an extra bedroom, a larger garden, a place in a smarter neighbourhood. For them, too, a slide in prices as a whole is welcome. Should we feel sorry for those who have seen a collapse in the value of the equity in a home bought two years ago? Of course; their folly has cost them dear. But not everyone wants to see a resurgent housing market. For some, low prices are thoroughly welcome"