Bad Market Good for Marriages?
It appears that the declining prices of homes is having a positive effect on the divorce rate, at least in the UK. I saw the below referenced article on the Realtor.Org website today.
As much complaining as we are all doing about the market conditions, maybe this is a silver lining!
Daily Real Estate News | September 5, 2008
Falling Home Prices Curb Divorce Rate
The sluggish housing market in the U.K. has an upside: The divorce rate is falling. In fact, national figures for the U.K. published in late August show the divorce rate last year was the lowest since 1981.
Analysts from real estate services firm Savills say there’s a strong correlation between housing prices and the divorce rate.
“As house prices rise, home owners undoubtedly feel wealthier and our supposition is that they also feel able to afford to get divorced,” says Lucian Cook, director of Savills Research. “We forecast that the current falls in property prices will result in fewer divorces, even allowing for the overriding downward trend in the UK’s divorce rate.”
However, family law expert Jill Goldman tells London’s Daily Mail that financial woes often will cause arguments and put a strain on relationships; so there may be some divorces that are actually caused by dropping home values.
Sources: REALTOR® Magazine Online, Savills Research, Daily Mail