A frequent misunderstanding is the people focus on price increases as they are obvious but they tend to pass over price decreases. Right now housing costs have declined but few point this out as a factor that acts to reduce the cost of living because gasoline, heating oil, many foods, etc. have increased. 

Ray,

That sounds so theoretical, that it's hard to believe. My housing costs haven't declined. They've increased. My fixed mortgage does remain the same. My real estate taxes rise every year. Any type of repair or service costs more each year. Heating oil has increased astronomically. I'm spending much on insulating the house more efficiently and replacing windows with more efficient ones. Replacing the heating system with a heat pump that can't even heat the home properly in the Northeastern climate costs at least $20,000. That's hardly a reduction (even if it worked.) Geothermal heating?...fugetaboudit! $20,000 would be a down payment. 

Actually, the only price that's decreasing is the fixed mortgage payment, because the fixed amount of dollars paid is worth less each year (relative to the cost of living).

But you're still my financial buddy :-)

Sy