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Weekend Reading – Housing Needs to Improve

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.

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