HIP - Home Information Pack

I am interested in the effect the media is having on the housing market in general though would like to give an example of why house prices going down is actually good news for many.

Couple A have a 150k house 2 bed and want to buy a bigger house.
The house they want is a 3 bed and 200k.
So to change and upgrade they must pay 50k.

However, before they put any offers in the housing market drops by 10% accross the board for arguments sake.

Therefore, their 2 bed house is now worth 135k and the 3 bed house is worth 180k. NOW the cost to upgrade is 45k and they have saved 5k and have the house they wanted.

Obviously the reverse is true if you are downgrading - though how many of us are doing this?

Personally i feel for too long the banks have hood winked many into spending equity in their property and becoming mortgaged to the hilt.

This equity is paper profit and not truly realised until you sell your property - but then where will you live.