As I don’t own a home and prices coming down helps me afford one, I can’t believe I’m going to say the follow – House prices need to go up!
The S&P/Case-Shiller 20-city index (mostly regarded as the most accurate gauge of the housing market) fell 18.2% from a year earlier. This is the most since it began in 2001, and means that everyone’s perceived net worth [1] is sinking faster than you can say “Oh no”.
In order for the whole economy to turn up, housing prices have to improve. If it keeps dropping like a rock, banks [2] will be hesitate to lend and businesses will suffer. This will in turn just cause further layoffs, something none of us want.
Investing and Personal Finance Articles
- If you are looking for something safe, then check out my HSBC Direct Online Bank Review [3].
- The Smarter Wallet warns us 5 stock sectors to avoid in a recession [4].
- Oblivious Investor urges us to be more precise when we talk about risk [5]. Well said!
- ABCs explain what everyone means when they say “chasing investment returns [6]“. One advice – Don’t do it.
- Moolanomy explains what an Inverse ETF [7] is. A great read if you want to learn more about these evil vehicles.