Is it wrong to hope for a collapse in home values so that I can afford a second home (vacation property) in the near future?

Capitalist dog!

Well I vote for it so I can own my FIRST home!!!

What about the loss in value of your primary residence

"What about the loss in value of your primary residence?"

This is another concept that I have mixed feelings on. What diffence is it to me when my home loses value if I don't plan on moving for at least 10 years, and I don't plan on borrowing money against my house?

I was comfortable with the terms of my home purchase when we bought 2 years ago, obviously I regret not waiting until now when I can get a better deal on the same house but other than that I have no problem if my home loses some (or a lot) of its value.

The only drawback I see is if I want to sell my house, and then decide to move to another area where home prices haven't been depreciating as well.

"capitalist dog"

lol!

Same here. No way I can afford to pay $800k (peak prices) for a two bedroom condo in my neighborhood.

I would like to just be able to afford one house..

even after the pricing has fallen close to 50% in some areas of Phoenix, now the loan companies have tightened their lending standards and it's tougher to get loans...

its a catch 22.

Move to Phoenix ..slightly lower wages, but no shortage of decent townhomes under $200k...

$500k will get you one in a very upscale Scottsdale neighborhood

you are short sighted or live in an economic vacuum if you think the decline in values cannot have a deleterious effect on your own financial situation.

Not exactly the response I've come to expect after reading and participating in this forum over the last 3.5 years....

If I am short sighted, can you tell me what I am missing. I will always need a place to live, so why should it matter if my home loses value? The only exception I can see would be if I needed to sell my home and move to an area where home values haven't declined as much.

They say every dog has it`s day, and thanks to the current market, THIS dog`s ship has finally come in(ok, so it`s just a dinghy;)
but I was *finally*(after missing the boat some 30 years ago) able to buy my first home earlier this month. No mortgage, either
Do I feel guilty? HELL no

my statement was not meant to single you out, but rather to suggest a severe decline, perhaps leading to more foreclosures, job losses, etc. might not be so good if it affects your savings, investments, employment situation, taxes, etc. That is what I meant by short sighted; the economy is not a bunch of discrete spheres, but rather more like an intertwined networks of markets. contagion is a real possibility.

The severe downturn in home prices is necessary, even as it leads to financial turmoil. Home prices don't correlate to incomes. The home price appreciation wasn't sustainable. This correction was needed. Home prices are still not level with incomes. More correction is needed. It's unfortunate that many people are losing their homes, but they should not have been purchasing a home that was more than 4x their annual salary. Don't get me wrong, many people were to blame including the gov't, mortgage brokers, realtors, lenders, wall street and home buyers.

Median household income where I live 4 years ago $65k

Median home price where I live 4 years ago $550K

I have no idea how those numbers work.... tons and tons of short sales and REOs here.

Owning a home where I live would never have been an option if the market didnt fall.

Current home value for that same $550k home = $350k

You beat me to it. I was thinking along the same lines.

You were just waiting for prices to come back to earth, nothing wrong with that !!!