Saturday, June 02, 2007

Cheaper House Prices are a Good Thing

Whenever the housing market takes a turn, how you feel depends on where you stand. There are buyer’s markets and seller’s markets; what’s good news for buyers is bad news for sellers, and vice-versa.

So a slow housing market is framed in hand-wringing headlines, like this one from Friday’s Boston Globe: ‘Housing slump may rival late ’80s.’

“If you are struggling to buy a home, that sounds like good news, not bad. It’s also good news if you consider the long-term needs of the state economy.

Lower home prices ‘are healthy for the economy,’ said Alan Clayton-Matthews, the UMass professor who authored the study.
I'm glad to see this message finally starting to seep into the main stream media. I've said many times before on this blog, and I've been severely criticized for it, that lower housing prices are a good thing for the economy, our communities, and the environment. Cheaper house prices may not be good for your specuvestor pocketbook, but it is better for the overall community...so stop thinking about yourself.

Fortunately there are a significant number of people in Marin who understand that affordable housing is a good thing and worth striving for even if it means reduced property values. But unfortunately our local inward looking and protectionist forces have been able to dictate policy.

It seems to me that Marin can either do the right thing and do it well or it can have someone force it down our throats, do it for us and probably not do it at all well.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

Terms of Use: The purpose of the Marin Real Estate Bubble weblog (located at URL http://marinrealestatebubble.blogspot.com/ and henceforth referred to as “MREB” or “this site”) is to present and discuss information relating to real estate and the real estate industry in general (locally, state-wide, nationally, and internationally) as it pertains to the thesis that recent real estate related activity is properly characterized as a “speculative mania” or a “bubble”. MREB is a non-profit, community site that depends on community participation and feedback. While MREB administrators do strive to confirm all information presented here and qualify all doubtful items, the information presented at MREB is neither definitive nor should it be construed as professional advice. All information published on MREB is provided “as is” without warranty of any kind and the administrators of this site shall not be liable for any direct or indirect damages arising out of use of this site. This site is moderated by MREB administrators and the MREB administrators reserve the right to edit, remove, or refuse postings that are off-topic, defamatory, libelous, offensive, or otherwise deemed inappropriate by MREB administrators. You should consult a finance professional before making any decisions based on information found on this site.

The contributors to this site may, from time to time, hold short (or long) positions in mentioned and related companies.