When I said that lower housing prices aren’t “all bad”, I mean that they aren’t bad for everyone. If you bought your property in the last year or two, especially with 100% financing, then it’s very bad, especially if you need to sell or to refinance. But a lot of people have owned their homes, or have traded up from other homes, and their inital investment was made 5, 10, or 20 years ago. If prices go down x% in the next two years, it may not matter to them, especially if they have no intention of selling their property in the next 5 years.

But the appreciation we have seen, especially in the past 5 years, has been ridiculous. Only an idiot would have thought they we would contine to see double digit annual appreication. Even slightly lower home prices would be good for a lot of renters or young people who hope to buy in the next 3-5 years.