Does the average cost of a house worry you at all?

Question:

The average price for a home in the United States dropped once again. Does this worry you at all?

Answer:

As a homeowner, yes. I used to not be worried because I could still see the prices in my neighborhood increasing, but not anymore. I think that once the prices in my area level out some, I’ll be less worried. No one wants to lose money in their house. That would go against the point of owning a home, I thought.

I’m sure I’m not as worried as people in other parts of the country though.

Does the falling median home price scare you?

Question:

The median home price in the United States seems to keep falling even when news about the economy is picking up. Does this news scare you at all and when do you think the median home price will stop falling?

Answer:
First, I don’t think the news scares me too badly only because the value will eventually go up. The price of homes (at least in my area) will go back up to where they were a year ago in the near future.

This gets me to the second point. I think that a home is one of the most sound investments a person can make. Owning a home is usually the cornerstone of wealth building in America. Many people are proud of the homes they own and in the near future (I would guess in the next two years) people will start seeing their homes as a sound investment again and the real estate market will perk up.

The housing prices in the area where I live (a small college town south of Memphis, TN) haven’t fallen as much as they have in other parts of the country. I am grateful that the prices haven’t fallen so much, but at the same time I know that the housing market has to pick up a bit in order for my house to be able to sell for a price I’m comfortable with so that we can move to an area where my husband and I are able to make more money. A college town may not be the best place to find work when you’ve graduated with a business degree in marketing.

However, looking at the current economic situation and the news that Ben Bernanke keeps coming out with, I think that the housing market will begin to pick up shortly after the economy starts posting growth versus contracting. The contractions are slowing down as well as the rise of unemployment, but until growth is seen, the median price of homes will likely continue to fall.