[quote=Nor-LA-SD-GUY2]Ohh yea, Lower home prices have been a real boon alright !!
Just ask anyone in phoenix , Florida or Vegas
Although I must admit there has been a dramatic uptick in home sales in those regions.[/quote]
It’s not lower prices that have caused a problem, but too much debt that is the root of the problems. Ten+ years ago, the economy was booming in those places…and housing prices were very low. Their economies were booming precisely because of their affordable housing stock.
Their economies suck now because too many people were forced (and they didn’t help themselves, either) to pay too much of their income toward housing. They could only do that for as long as prices went up — they were using new mortgages to pay their old mortgages. When prices stopped rising, they were no longer able to cannibalize their debt. There was no way it could last indefinitely, and it didn’t. Now, we need to endure the painful correction so that we can get back to a healthy foundation from which a healthy and sustainable economy can be built.
