Comment: Rising house prices are good

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Rising house prices are good

Rising house prices are good if you already bought a house, especially if you owe a big mortgage on it. Then you can feel real smart for using leverage to buy an appreciating asset. Rising house prices are bad if you want to buy a house, especially if you're going to have to borrow a huge amount of money to do so.

All in all it's a zero sum game. Strangely, nobody thinks its a good thing to have rising food prices, rising car prices, rising health care costs, rising tuitions, or rising gas prices. But somehow rising house prices are supposed to be a wonderful thing.

I own a house. I paid cash for it. I like where I live and hope to stay here forever. Of course I still have to rent it from the government (property taxes). A house is a very expensive thing, and it always needs maintenance. So be rational about it. For some people it makes sense to own a house, and for others it doesn't.