Jimmy Marguiles, drew this commentary after the FED released data showing that household wealth dropped to 1990's level.
Most households buy a house has an investment. When housing prices skyrocketed, their net worth increased. After the housing bust in 2008, the median family saw their investment, and thus net worth, shrink. I feel for those investors, but I have two comments to make--both unintelligent.
1. The value of a home is how much the buyer thinks the home is worth. To think that this value is fundamental is misguided. A home has to have a good location and many other values that are often personal. I don't think the market value of the home should be listed on the balance sheet. I think the price that the home was purchased at should be listed. 2. War destroys value. The US is fighting so many wars and uncertainty is so high that it's no wonder why homes are now approaching their true value.
Addendum: Foreclosures are up by 9% despite record low mortgage rates. Here's a link to msnbc.com with an interactive graph.