Hurray for Lower Home Prices

If most of your wealth is tied up in the value of your home, falling house prices are bad news. But if you want to buy a home and aren’t already saddled with one, falling prices are good news. Amid the focus on the bad-news side of the equation, scant attention has been paid to the fact that some people who were priced out of the booming market can now afford a house.

A new Mintel report foresees “golden opportunities” for mortgage marketers among young adults and ethnic minorities who are coming into the market as first-time buyers. We can surmise the same will be true for marketers of other things first-time homeowners need to buy.

In Mintel polling fielded in June, 42 percent of Asian-American respondents said they plan to buy a house in the next five years. So did 37 percent of black and 30 percent of Hispanic respondents. Twenty percent of white respondents said the same. Thirty-nine percent of 25-34-year-olds plan to buy a house in the next five years, vs. 23 percent of respondents in general.