About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:

Housing Market Remains Sluggish, But Prices Continue to Rise

By Erik Folgate

CNN Money writes this article about the housing market continuing to slump. If you look at the numbers, they are not unbelievably bad. It’s been a gradual slip back reality which should have been expected after one of the biggest housing booms in United States History. Seriously, take yourself back to 2003 and 2004 when you had to actually had to outbid other buyers above the asking price in some housing markets. That’s how crazy it was getting in places like Arizona, Florida, Atlanta, New York, and California.

The numbers in this article suggest that the slumping housing market is merely weeding out the people that weren’t serious about selling their house. They thought that they would just throw their house up at a ridiculous price and see if they got any bites. Those people are pulling out the market, and we’re starting to see a housing market that our parents are used to – a buyer’s market. You still won’t get a GREAT bargain in this housing market, but now you can negotiate the closing costs, the seller paying for the home inspection, and other smaller fees that go along with closing the deal.

In my opinion, this is actually a good thing for the economy. Once the housing market is finished cooling off and the foreclosures settle down, you will start to see a housing market that boasts steady, solid growth. This is the kind of trend you want to see in the housing market and the stock market. Think back to the late 1990s when people are jumping up for joy in the dot com stock market boom. Guess what happened? It went back to reality. Day traders and single stock owners lost a bunch of money, but the people that just kept doing what they’ve been doing did not take a big hit.

The moral of the story: The investment lesson is that the best kind of market and the best kind of investment strategy is a methodical, steady growth. Invest over the long-term, faithfully each month and you WILL be wealthy when you grow old. You can almost count on this, because we know that the stock market has average over 10% growth over it’s lifetime. The housing market has been the same way. It may have fallen the past 3 years, but over the long-term it has produced solid, steady growth.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

Related Articles

The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.

Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, U.S. Bank, and Barclaycard, among others.
Close