People spend less on mortgage payments, freeing equity.
It becomes cheaper to own than rent (and a tax break), freeing more equity.
RE becomes a decent investment in SD, drawing more folks/money.
Neg’s for the economy:
Construction and related industries are dead until all the overhang is cleared.
Massive HELOC’s are a thing of the past, so big downturn in sales of luxury goods.
Reverse wealth effect, people feel poorer when their homes aren’t worth as much. So more saving and less splurging.
My guess is overall its a much bigger loss than a gain. After all, we are basically rolling back to how SD was in ’98, which wasn’t exactly a boom town.
