If you were put in charge with the goal of making a better society, would you want the cost of purchasing a house to go up or down?
I'm not saying we should be happy that home prices are now falling. But as we were celebrating our increased home wealth over the last several years, not many people stopped to think how these illusionary gains were really making us any better off.
3 comments:
I hope you really mean hypothetical and not rhetorical, otherwise I'm going to feel pretty stupid. LOL.
Anyway, I'd want low, but stable housing prices. More specifically I'd want home price appreciation to match the rate of inflation plus maintainence costs. Wait, isn't that pretty close to the pre-bubble CAGR?
-Nick
_________ matters.
Was that last question rhetorical? Because it turns out you're right.
http://graphics8.nytimes.com/
images/2006/08/26/weekinreview/
27leon_graph2.large.gif
:)
Nice graphic!
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