Housing Prices Drop

Posted by Kristin Abraham Aug 28, 2007

In the second quarter of 2007 U.S. housing prices dropped 3.2%. This is the steepest rate of decline in 30 years, which is when Standards and Poors began keeping track. It also appears that this trend will continue for the foreseeable future.

I'm not sure what the long term effects on the economy will be or what will happen in the housing and mortgage markets but I have a feeling that the interior decorating field will thrive in this environment.

The few people who are in the very best position are the ones who don't have homes at this point and are looking to buy. They're going to get such a great deal on their new home that they'll have money to spare and people working in interiors will benefit.

I also think that people who bought a few years ago at inflated prices (but with deflated interest rates) will be looking to recoup some of the losses they've experienced. I think updating and improving their home will be the most logical solution. They've probably already got the marble and granite and hardwood and all the other decorating "must-haves" of the last decade, but a new hot tub might improve the value, or a wine cellar, or maybe a full blown entertainment room.

In line with that thinking, I believe people will be looking to stay in their current homes longer. Flipping will no longer be such an attractive concept. So, I see homes becoming more customized and suited to the personal needs of the family living there. And along that line of thinking, I believe that trendy decorating might become less common and unique, stylized decorating will move into the forefront. Which, to me, seems terribly exciting. I love it when people are able to break through the mold and create their own style.