This is good news, it would be better if house prices drop to levels 10-15 years ago. The next shoe that needs to drop is the excessive overinflated college prices. Remember the less money tied up in the big money sponge called a house, the more money circulating in the economy instead of locked in bank vaults used to pay bonuses or speculated in non productive trade. And homes should not be so expensive as to tie up 70% of someones income (ie teachers should be able to buy a home and not living house poor) Also increasing Foreclosures will be bullish for the economy as well. This means more folks are no longer saddled towards servicing debt and can use the free cash flow towards more productive uses. NEW YORK (CNNMoney.com) -- Home price gains earlier this year flattened out in October, according to a report issued Tuesday. The S&P/Case Shiller Home Price index, covering 20 of the largest metropolitan areas in the nation, was unchanged in October, after four consecutive months of gains. The index is down 7.3% from 12 months earlier. http://money.cnn.com/2009/12/29/real_estate/October_home_prices/
There is no falling knife. Joe the Plumber who had 10 dollars left after bills and engorged mortgage bill now having 2300 bucks a month after walking a way is a net gain for Joe the plumber. And a net gain for America.
Housing prices are still inflated, too much intervention within this market has caused housing prices to stabalize. Why stabalize and prop up a housing market that didn't naturally find it's true bottom. Adding all these tax credits and helping everyone in foreclosure who could not afford a house to begin with has only delayed the bottoming process. Propping up housing is the wrong thing to do, houses are still overvalued by 30-50%. Seems they weren't quick enough to control the housing bubble but they were sure fucking quick to try and put a bottom in it. All a joke. All who couldn't afford a house are now getting handouts to help them stay put, doesn't seem all that fair, now does it?