Do u agree that it would be better to have lower house prices?

Question

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/04/ccom104.xml

and did you know this about the American mortgage market?

Quote

Second, what gives the American measure particular traction is a characteristic of their mortgage market which is absent here.

Many American mortgages are non-recourse, that is to say the lender is unable to pursue the borrower for payment of the debt if he defaults. With a huge number of Americans facing negative equity, the temptation is simply to abandon properties, knowing that legally lenders cannot pursue you.

Answer 1

Yes lower house prices are better. What is happening just now id just the market correcting itself as it was too high for too long. People getting mortgages at 8 or 9 times there annual income was insane and unfortunately not sustainable, the market correcting itself will work out better for most people.

Yes the USA market started the economic collapse as a lot of people did default, especially people with crazy mortgages, that's why USA banks stopped lending which is now impacting on the UK market  

Answer 2

Which is why america is the most low-tech third-world country in the wester world. They only have half the laws they need.

Answer 3

5/6 Years ago i would of said yes, there was no need for prices to treble in value like they did it was obscene.

The problem now people have is they have re mortgaged and re mortgaged again up to the value of the house because the market was so strong in the last few years.

Now as soon as the value of these homes drop people will be left with negative equity in their home & will owe more than the house is worth. So to me this cant be a good thing it needs to stay at its current level for people not to go under

As for the American mortgage market simply righting off such debts is good for the individual but does nothing to keep a stable economy   :)