Home ownership is the American dream. It’s so engrained in the national psyche (reinforced by the REIC) that saying houses prices could fall is, to most people, like saying the moon could fall. Everyone looks at the last 10 years appreciation and projects that into the future. Last year, I remember having a conversation with someone. I used my own house as an example (which had already more than doubled in value in 5 years) and said, “What, you’re saying it will double again in five years? Who would buy it?” The person said something to the effect that “…of course it will.” The conversation ended there. I subsequenty sold that house. Now I have to resist the temptation to say “I told you so.” It’s also too late to warn anybody to get their house in order. If they’re highly leveraged or need to sell and haven’t already done it, it’s probably too late to avoid any nasty consequences.
