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how do you feel about real estate prices coming down?

is it a good thing, a necessary thing, the worst thing that could have happened...anyone with personal experience?
also, are you aware that the rest of the world is following suit? is THIS a good thing, a necessary thing, the worst thing that could have happened...


Asked by Anonymous at 6:31 AM on May. 22, 2009 in Politics & Current Events

This question is closed.
Answers (7)
  • I feel they were way over inflated anyways and still are. How do you think the average person can afford th eaverage house pirce? $100,00 hmmmm wonder why so many are in debt. It is rediculus. A house should not be bought for profit unless you plan to rent it. A house is for you to live in.

    Answer by Ibelongtojesus at 9:34 AM on May. 22, 2009

  • I feel like I am answering a school essay.
    I think many areas had inflated prices. IMO, based on our real estate investments~we should be at 2005 levels right now and holding steady. In some areas they are dropping more. imo, that is more reflective of NO jobs and a shrinking GDP. However the Obama Admin is more concerned with growing Government NOT GDP, so I don't see this getting better in the near future.

    Answer by grlygrlz2 at 7:25 AM on May. 22, 2009

  • If it continues, it's a bad thing. Local and state governments will get less money from property taxes and will have to make cuts to employees, social programs, school systems, etc. Also, the more underwater someone is with their mortgage, the easier time they have walking away from it. The government is going to try and cause inflation to "fix" the problem. It will looks like housing prices are going up but you'll also see increases in cost of food, oil, and across the board.

    Answer by smalltowngal at 7:51 AM on May. 22, 2009

  • Actually, isn't one of the thorns in the stimulus bill that the states are taking money for requiring that social programs actually be expanded? I thought that was why some states were against it, as this would change their laws and when the stimulus money runs out the taxpayers will have to step up and put more money into those expanded social programs? Please correct me if I am wrong.



    Answer by QuinnMae at 9:15 AM on May. 22, 2009

  • A house should not be bought for profit unless you plan to rent it. A house is for you to live in. A

    imo, a house is an investment. People can rent apartments, houses, etc to "live" in.  People buy houses as an investment in their and their families future.  People should have to put 20% down to buy a house. Without the 20% "rule", there is a greater risk of people who can't afford homes, getting in over their head.  Also, WITH the 20% rule, houses appreciate at a MODERATE and appropriate rate. (supply and demand).  Scrap the fricken Community Reinvestment Act 1.0 and 2.0.  Go back to the way it should be. Good Credit, Good Job, and a min of 20% down. 


    Answer by grlygrlz2 at 10:45 AM on May. 22, 2009

  • so what do you think the 'correct' house price -to-income should be? historically worldwide, its 3x wage, which works out nicely, as richer people buy bigger houses, but in parts of the world (where i live its up at around 9x. not good

    Answer by katiemum at 5:23 PM on May. 22, 2009

  • A house is usually the largest investment a person will have unless he or she is in the rich category. This makes it an investment even though the basic reason to buy is to live in it. The fact is you can live in an apt but you won't have any equity built up. The equity in your home is good to have for when you want to move up or if you get in a bind you can get home equity loans that are tax deductable. Having equity in your home is good all the way around.
    I agree prices are down but I think they are leveling off now. If people can just get jobs now so they can affor to buy even a cheap house things could start to turn aroun. This is obviously not happening and i don't think it will in 2009 because all of Obamas plans will cause more job losses.
    The Stimulus bill is sticking it to states who take all of the money. Thats why some do not want to take the part especially for unemployment because the strings attached.

    Answer by itsmesteph11 at 5:57 PM on May. 22, 2009