Declines in Home Prices

Unless you've been living under a rock for the past two years, you will have noticed a certain trend that has many people in an uproar. That would be declining home prices. Home prices skyrocketed all throughout the early 2000's as a result of government policies of easy credit. This has led to a great bubble in the market for homes that put homes out of reach for those who responsibly said no to owning a home during that time. And finally, as with all bubbles, the bubble burst and now those with a good credit rating and a little cash for a down payment are in excellent shape to cash in on one of the greatest deals to happen in the past decade.

The government again is trying to manipulate the market in order to rebound from a slump in economic activity. Now in certain cases, government manipulation of the market is looked down upon, but to be fair the government has a vested interest in ensuring the continued prosperity of its people. The best way to do that is a debate that has raged for centuries. I will not attempt to comment on that at this time, but for the purposes of this article, I merely want to point out that a similar catastrophic event happened in our not too recent past that affected the market significantly. In the days following 9/11, economic activity slowed as a result of fear and a lack of confidence in investments around the world. As time went by, the government took steps to remedy the situation in addition to steps that investors took as well. The point I'm trying to drive here is that economic slumps and economic highs occur all the time. It's just a matter of being at the right place at the right time, with the right resources to be able to capitalize on what is happening right now.