Now for the really good news. In numerous areas I've looked at, home prices are now at levels of the early 90’s. In addition, with even tougher mortgage guidelines about to take effect, values are going to continue going lower, leading to even more foreclosures. Also being destroyed are all the business's and people who used to make their livings on Real Estate sales.
Now, to those who aren't homeowners and feel it won't effect them, these lender loses will likely be covered by more tax payer dollars.
If anyone thinks our economy can improve without replacing this component, they are mistaken.
So who's benefiting? In my area, young couples starting out in life can buy a nice home on a single income, so the wife can stay at home with the kids. Before, theyd be spending upwards of 50 % of 2 incomes on monthlies.. Also, some people who could only rent before can now buy, as long as they have a job.
Home prices were flat between 1989 and 1999. No where is it written that housing is guaranteed to be the way to make an easy buck. For every person who gets screwed, somebody else benefits. Such is life.