One hates to see the value of their home go down, but on the other hand if you are buying another home the new home will also be less expensive for you. Troubles come about when a homeowner owes more than they can sell their home for. This is the primary reason our nation is experiencing the current financial problems. Banks and other lending institutions were told by the federal govenment to give loans to just about everyone. The liberal minded congress felt that every person had the right to own a home no matter what their income was. Well we are now suffering for their actions. The housing market became flooded with homes for sale leaving banks holding properties which are not worth the value of the outstanding mortgage.
We homeowners who have worked and paid our mortages all these years now must help bail out both the banks and the homeowners that have over extended themselves. Secondlly without homes being sold and loans being made businesses both large and small suffer. Many must close their doors and lay off workers who in turn can't pay for their mortgage and therefore another home enters the marketplace causing our homes prices to fall even more.
The Federal Government is attempting to put the brakes on and stop this spiraling downfall. We can only home it works. It will take some time to recover. The stock market is at a 12 year low leaving many of us with less money to buy that retirement home we wanted or help our children with their first home.
The outlook is dim for the next year or so but analysts say it should turn and improve by 2010 at the very earliest. This year will be a very interesting one to say the least. Tightening of requirements for home loans have required higher down payments however loan rates are decently low. We must look at the few brighter things rather than all the negative. Postive thinking will go a long way in helping both our country's health and our own.
