I fail to see how falling home price index is a bad thing. Because we now have to be honest with ourselves? Because our pipe dream of infinite (and impossible) wealth generation via home ownership was a farce? As this article shows.
Why? Simply, because housing prices are always relative to incomes, incomes to inflation, which inflate housing prices, which means through ups and downs of various bubbles, they always snap back to a baseline.
Economics 101: where is the value creation?
The only way to sit on your fat ass watching TV while your home appreciates X percent is if we actually QUALITATIVELY grow our economy. How do we improve what we already have, our stock, our supply chains, the distance between creation and consumer?
There is a whole lotta waste built into the current system. Why? Because it is based entirely on QUANTITATIVE (and indiscriminate) growth. Is it good for us? Who cares! Money, money, money, money, MONEEEYYYYY!!!!
Oh, where did all that money go?
What happens with such economic policies is that while extracting resources from a finite source, the earth, infinite growth is impossible, but that is what our system is founded upon. It also has severe environmental repercussions, because economics is merely a subset of the environment, yet we choose to ignore that.
If we focus on qualitative growth, how do we make everything better, how can we be more wise, more efficient, more intelligent, and advance technology to improve quality of life, we can begin to approach infinite growth...qualitatively.
Lastly, I've written before about the American Dream being co-opted by the Levitts of the world, which turned it into entirely about home ownership. Much like a dream, it isn't real.
The only thing that (at least was) is real was the American Inspiration. The possibility of creating a better world and QUALITY of life for yourself and your family. Good word there: CREATE...through your own hard work...as in value. 1 + 1 = 2. Value Creation.