Why is it good when house prices go up but bad when anything else goes. You know what I mean.?

Answer 1

I know what you mean.
But it's bad for everyone when house prices go up.
The seller is going to have to pay more to buy a new house, and the buyer is going to struggle to find the extra money.

Answer 2

When housing prices go up, it's good if you're selling a house and bad if you want to buy one. In general, it's not good for housing prices to skyrocket like they have recently. People get shut out of the housing market, and eventually the "bubble" will pop and housing prices will crash. Then a lot of people are at risk of losing their homes to foreclosure. You'd think that would be a good time to buy a house, but you never know if the price will keep going down after you buy it.

We're all better off when housing prices go up slowly, steadily, and predictably. That's true of other prices too.

Answer 3

Honestly, it depends on what side of the fence you are on. From an accounting point of view, homes are an asset; most other consumer goods (food, gas) are expenses and liabilities. The general accounting equation is:

Assets - Liabilities (and expenses) = Equity.

So in the rule of business and investing, when the value of an asset (e.g real estate) goes up, its a good thing because it increases your equity. When the price on an expense or a liability goes up, it reduces your equity.

Having said that, you have to gauge your speaker when they say things like "Homes values are up, thats a good thing". Generally these people are speaking from an investment perspective. An increase in home values are good only for people who already own homes and investment properties. For those of us who do not own homes and would like to purchase one, its a bad thing because now homes are more expensive.

Further, the increase in price of food and gas is not a bad thing for everyone either. For instance, the increase in oil prices is good for Oil companies and people who own oil stock because it means higher profits and hence, a higher stock price. If gas prices go up but oil prices go down, the its the gasoline companies who profit (stock prices go up). However for the rest of us (that don't own gasoline stock) and have to buy gas regularly, its a bad thing because now gas is more expensive.

In conclusion, when listening to finance "experts", take all advice with a grain of salt. Analyze your own personal situation first. Then look for advice (or an advisor who will give advice) that fits your personal situation.

Answer 4

no its not good if house prices go up for the average joe as if they sell, the buy the next house at insanely inflated prices so no gain really.

its only god for property builders and investors that buy and sell property to make a profit.

if anything else goes up like interest rates. people that took out mortgages will have more to pay and most likely cannot afford the increase because they took one out that fitted with their cost of living and not left any room for the increase.

Answer 5

an increase in house (or property) price is a good general economic indicator. Basically if property prices are rising in a given country or area it is because people and businesses want to be there. This in turn is because the area has something to offer, which means it is economically desirable. That's why house price rises are a good thing (kind of).

Answer 6

When house prices go up the value goes with it. We are still able to deduct the interest and taxes on REAL ESTATE can't do that on cars! So see it doesn't matter on a car. Food prices go up-who cares- it is disposable!

Answer 7

Why do you think it's good that house prices go up? What about all of us who work and still can't afford to buy a house?

Answer 8

Because that's a sign of an economic slowdown = bad

Answer 9

Ah...it depends on your viewpoint.


If you are looking to buy a house right now you are in heaven. If you are selling you could be in some trouble.

Answer 10

No not really. Do you mean interest rates?