Talk of a bubble about to burst is everywhere. Houses are taking longer to sell, and sales of new homes are falling.
But instead of panicking, most homeowners should be taking a deep breath. The real estate slump of 2006 offers a fresh chance to puncture the No. 1 myth about the nation's No. 1 topic of conversation: the idea that we should all be rooting for high house prices. The myth is good for real estate agents, but it creates needless anxiety for everyone else. It's time that most of us learned to stop worrying and love the bursting bubble.
"Even in the most vulnerable markets, most people just have to look through it and ignore it," said Mark Zandi, the chief economist of Moody's Economy.com, "because it's of very little relevance to them."
That's the good news. The bad news is that a big part of the country's economic policy has been built on the myth.
Read the entire story, "Don't Fear The Bubble That Bursts," here.
2 comments:
A lot of good points in this article on why I am against the Death Tax. Although not related to the topic at hand. Check this quote out.
"THE best way to think about the value of your house — at least in the short term — might be to compare it to Monopoly money. Having a big pile of it feels good, but you can't really spend it.
As long as you are living in the house, you have no way to lock in your gains. Yes, you can borrow against those gains, but new debt is not exactly found money."
- Jim
But the estate tax does not apply to you and me.
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