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They said falling prices was "good news".

Believe it or not, falling prices are good news. The housing market will not recover until people in their late 20s/early 30s can afford again to buy a starter home. At that point, people who have kinda outgrown their starter home can move up. Then empty nesters can start looking for their retirement place.

Affordability of starter homes is key to the housing market recovery.  

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