Perhaps the most valuable lesson that real estate consumers learned from the housing crash was that home values can fall as well as rise. More than seven million families lost their homes to foreclosures and short sales; a brutal wake-up calls that though homeownership is safer than most investments, it still involves risk. Today’s buyers are very aware that a single wrong decision or factors beyond their control can cost them dearly.
- First-time buyers are crucial to the housing ladder; they must absorb move-up buyers' houses.
- About three-quarters of applications for mortgages to buy a home are approved.
- Prices reflect temporary shifts in supply and demand. Values are long-term and change slower.