“There’s nothing troubling about a gradual correction of home prices.”
The key word here is “gradual”. If wages are stagnant, then this could mean a slow drop in home prices. Or if house prices are stagnant, then wage inflation could slowly makes the houses more affordable. This is a good thing.
If you’re a renter, then of course lower house prices are good for you. If you already bought a house, then price declines help you as well. It will lower your property tax, insurance, and probably lower the cost of remodeling as well.
Owners who are in a “must sell” situation would be hurt in the near term. But the good news is that they will become renters again. So in the long run, they will also benefit from lower house prices (assuming they decide to buy again).
