Why are falling house prices seen gloomily ? Surely it means more people can afford to buy !
by 
Yanstari
ANSWERS: 6
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Well, the people who have bought the home would be forced to sell their property at a much lower price. That's one downside.
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The sector of building is one of the main sectors in a "healthily" living economy. If it is to die the shows us the other dying things including the tiny budgets of the people who wish to buy house for instance! So let's be sullen faces and gloomy...
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Falling house prices are only good for the people who were not hurting in the first place. Here in my area low prices are being caused by people unable to make their payments, and losing their house. We are among the hardest hit in the country. Hundreds of families are now living in their cars, or in small apartments and are forced to give away their pets or take them to the pound. In one neighborhood, all the houses on an entire block are now abandoned. Restaurants and many retail stores are closing, because no one can afford to eat out or buy anything. It just goes on and on.
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because homeowners have a louder voice than non-homeowners because we all think we can buy a thing, wait a while, and sell it, and make easy money that way, but it's against the laws of mathematics
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Housing starts and prices are what we call "leading indicators" of economic activity. They are among the very first things to change when the economy begins to move up or down.
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When the housing market starts to loose money, there aren't as many houses built, which is bad for the construction industry and the people who supply the wood and plumbing etc. Which means they aren't going to make good wages so their spending is cut back, which hurts the retailers and restaurants etc. So what you have is a snowball effect. It starts out small and gathers people in as it rolls down hill and pretty soon we are all hurting for cash. Except the wealthy.
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