CBS: Rising and Falling Home Prices Bad for the Economy

No matter what the housing market does – whether it trends upward or trends downward – either way, it is bad for economy. That’s the CBS take on the economy anyway. “The prices of homes are falling and there is more evidence tonight that those counting on their houses as their nest eggs may be in trouble,” said Russ Mitchell on the August 26 “Evening News.” All right, falling home prices are bad. So we need to see home prices increase? Not so fast. Flashback to June 15, 2006: “[E]ven with mortgage rates inching higher, prospective home buyers are anxious to get into the real estate market,” said then-CBS correspondent Trish Regan (who now is employed at CNBC) on the CBS “Morning News.” “The only problem – [home] prices are just too expensive.” The median home price is currently $223,800 according to the August 26 CBS “Evening News.” “With home prices dropping in so many areas, many families could lose a big financial cushion – their home equity,” said Bianca Solorzano. But, just 14 months ago, the median home price was even lower – at $223,000. Then, such “expensive housing” was bad for the economy. “An ever more expensive housing market is helping to drive inflation upwards. Americans are spending more of their paychecks every month on housing,” said CBS “Morning News” anchor Susan McGinnis on June 15, 2006. Based on CBS News’s logic, unless home prices remain stagnant for eternity, our economy is doomed.