The value of their homes is a major point of pride for many owners, who use the figure to prop up their net worth and justify the money they’ve poured into their dwellings. When the price declines, as it has been doing for most homeowners for years, they tend to overlook the positive side of the drop — one that affects them more immediately.
As Budgets Are Sexy points out, lower home values means lower property taxes, which are typically added to monthly mortgage payments. Homeowners with sinking property values have lower payments and more money in their pockets than they would if the market remained steady.
There are other drawbacks to declining home values, such as less equity to borrow against and the possibility of a heavy loss if you’re forced to sell. But all things being equal, your depreciating home is making you richer.
A Perk of The Crap Economy? [Budgets Are Sexy]