OK. I'm happy about this. I'm probably going to buy a new home within a few years, and I am ecstatic about the idea that prices are not growing as fast.
Why? Well, I think the whole reason that prices went up as ridiculously as they did was artificial - sub-prime lending bringing, real-estate prospectors, etc. In the end, 90% price growth in a few years is NOT NATURAL. It is clearly artificial.
I only shed crocodile tears for those who are only facing 1% growth now. Why? Because it averages things out. The low growth now, combined with the past gains, in the end still results in above average gains overall.
So...whats the problem? Someone didn't get a 80% return? Boo-hoo! Like other investments, 4% gains is conservative, 10-15% is aggressive and lucky. So I don't care that they expected to double money in a few years. Home owners should be content in a lower return. The expectations in real estate have been unrealistic, and they need to become realistic again.
Those of us (most people) who have been priced out are finally seeing light in that prices might be more affordable. Low prices = regular people being able to buy homes. Is there a problem in that? And am I the only person who's happy?