It's not that bad as long as you're planning to stay in your home and keep your job. Long-term owners are basically indifferent to housing prices, because they

It's not that bad as long as you're planning to stay in your home and keep your job. Long-term owners are basically indifferent to housing prices, because they're not going to be making any transactions in the housing market. Same reason Warren Buffett is always marveling over why working-age people think news of stock market declines is bad. If you are a net saver, you want asset prices to be cheap and interest rates to be high, because you'll be a buyer of assets. Also, you're going to be investing in your children for a good 20 years, so it's not that irrational to make a 30yr investment in a house to get them into a good school district.