To those who own a home, I salute you!

http://biz.yahoo.com/ap/080722/home_prices_government_index.html


Here is a link to a report on the recent price declines for the month of May. Home prices fell about 5% from last year. So all my friends with million dollar homes just lost their kids' yearly tuition. Not to fret, if you sell now, you will avoid the bigger price drop to come.


Why? house foreclosures have not caught up with the layoffs. Congress is working on the crappy loans; we will soon see the loans that were made in good faith with good numbers soon go bad, due to increasing costs, increasing layoffs, and stagnant wages.



And once the baby boomers decide that they do not need-or cannnot afford- a five bedroom house with granite countertops, a wine cellar, and an outdoor kitchen, the value of YOUR house WILL be affected. A bright spot could be the fact that the boomers' adult children may not be able to afford their own houses, so they will move back in with their kids to mom and dad's.