Photo: Stephen Poff
I’m in my late 20s.A month ago, I learned, for the very first time, that a friend my age and his fiancé were about to buy their own house.
A week later, another friend and his fiance, both just over 30, told me that they had gone house-hunting in New Jersey over the weekend.
And that was wonderful news!
And it was only possible because house prices have finally fallen to a level that people like me can afford.
Specifically, house prices have finally fallen to close to their long-term average relative to rents and incomes–to a level where me and my friends can actually consider owning instead of throwing away tens of thousands of dollars every year in rent.
I’m giddy about that. And other people like me should be, too.
We got more good news on this front today: Housing guru Robert Shiller announced that the decline in October’s Case-Shiller house-price index was much steeper than expected (over 10% annualized). An economist named Gary Shilling says housing prices will drop another 20%.
Photo: Håkan Dahlström
I sure hope they’re right.If prices keep falling, maybe my wife and I will be the next couple in our young professional peer group that will finally be able to do what our parents all did at much younger ages: Buy houses.
So enough of this wailing and moaning and whining about how falling house prices are a national disaster. And enough of government bureaucrats taking taxpayer money and using it to artificially prop up house prices–thus rewarding current homeowners and punishing me.
Thanks to the ridiculous subsidies of the past few years, house prices are still above their long-term trend. And that’s bad news for me and everyone like me, who would love to buy houses at a reasonable level.
Falling house prices are a good thing for everyone my age that I know. So here’s hoping the trend continues.
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