Actually, housing prices in the USA in comparison with for example European ones are not so expensive. Some estate agents say that the prices are extremely low, especially if we take into account quality, characteristics, surrounding communications, middle earnings, and so on. Moreover, lots of specialists point that the crisis in housing for these some years has been in fact a chief aspect in obliterating the economy in the USA. By the way, they say that the housing crisis has damaged the middle class most of all.
Now let’s speak about some delusions that people have.
They say that low housing prices or their reducing are very good for next generations. Actually, stagnation and lessening prices in some years will make the youths lose savings and wealth. And as a result service providers won’t make as much as necessary, so people will be short of job and money. This situation will lead to further shorting of spending, and this cycle will continue with greatly reduced hiring and very worse incomes.
Some people say that high housing prices are very dangerous for the economy of the country. Note that such countries like, for example India and China, which are having very high housing prices, are growing with elevated GDP increase, earnings enlarges and so on. And on the other side, such countries as the USA and Japan where housing prices have fallen have in fact lots of economical difficulties.
They say that there is small inflation in the USA. Don’t be mistaken! Frankly speaking, most foreign currencies have become stronger against the dollar. Moreover, note that gold has risen six times for the last 10 years d in fact gold is a main sign of inflation. And in addition, don’t believe people who say that there was an enormous housing price bubble in the USA.
They say that housing prices appreciation enlarges discrimination but this statement concerns only developing countries because there are little amount of the people who have their own homes. And as for the USA, nowadays the middle class that possessed a large amount of the housing is suffering very much because of lessening housing prices, moreover they are getting out of housing ownership, at the same time as the rich are buying foreclosed homes at extremely cheap prices and renting them out to the hurting middle class.