The average homeowner should be happy about a market that is based on fundamentals. Your father advised you to sell your home because he saw that the market had lost all fundamental meaning during the bubble years. Taking advantage of that was an example of impeccable timing. He also detected that the instability would be followed by an inevitable correction. As a property owner and someone who is looking for another home I am also hoping for prices to continue the inevitable correction. I am not happy about the economy being in the trash and about friends losing jobs. Yet in order to at least build a new base for a healthy housing market the more that the housing market is allowed to correct free of subsidy and bailouts, the stronger it will be in the long run. Unfortunately many of the bailouts and loan reworks will only serve to produce a new batch of distressed homeowners 5 years down the line.
At any rate going back to your question, a return to valuations that are in line with a lower multiple of the median income, the better for all of us, whether we are current homeowners or not.
