10 Lessons to Learn From the Housing Market Debacle

The economy and housing market both have cycles. Realtors, homeowners and renters may be relaxing from recent good news about the housing market recovering, but we still have some lessons to learn from the mistakes that we have made during this slump. 

So what are the lessons we should learn?  Here are 10 lessons that come to mind:

1. The economy cannot recover without housing.
2. Everyone needs shelter, but not everyone needs to own their shelter.
3. High homeownership rates are important but they must be sustainable.
4. Home prices go up and go DOWN.
5. The process of purchasing /financing a home is more complicated.
6. Sound underwriting of mortgages is critical.
7. Home equity should not be used for ordinary living expenses.
8. Financial reserves for family, companies, and countries are necessary.
9. Homeowners confidence in the economy is directly related the value of their own homes.
10. The economy is global.

What lessons did the last decade teach you? We would love to know what you learned from the last cycle.

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