Actually, people are mistaken when they think that housing prices in the USA fell down as they had been too expensive. But if you compare housing prices in the USA to other Asian or European countries you’ll really find out that American housing is much cheaper than in other countries. And in reality people who had rather small wages were permitted to buy rather expensive homes owing to bank lax loans. And it turned out that people were buying the housing that they could hardly pay for.
They say that middle housing prices ought to be at most 3 times the middle income to be reasonably priced. This mistake is just simple absurd as the agents of this calculation in no way describe what the medium housing is. Moreover, if the medium earnings cannot effortlessly get even the apartment or a rather inexpensive home, you can affirm the situation of unaffordability.
Some people think that jobs revival will lead to a housing revival but in reality jobs will recover only when housing is expensive and people feel themselves rich. As long as housing prices go on reducing or be rather cheap, there will never be a real jobs revival in the USA.
A big number of people consider that in the USA renting is not so expensive than buying a home. Frankly speaking, this situation is really true in a few big cities. And actually in the majority of American cities, you’ll give much more money for renting than for buying a home. Cheap housing prices and very low mortgage fees have led to this state, which is in fact a benefit for wealthy landowners. Note that renting nowadays become more and more expensive. And you should be very careful with the bloggers who wish for medium housing prices and they want to reduce e price because their aim is to turn into money-making landowners.
One more people’s mistake is that some of them consider that housing is just shelter but in reality it’s investments.