Bush's "Strong" economy: Housing affordability has hit a 14-year low

[Bush_Eats_Beef]

Republicans to American Dream: Drop Dead

At the end of the first five years of the Bush administration, Housing affordability, one of the two key building blocks of the American Dream, has hit a 14-year low, according to the National Association of Realtors' Affordability Index, a widely followed measure of the average household's ability to buy a home at current interest rates. In some areas, including New York City, Los Angeles, San Diego, San Francisco and Miami, housing affordability has dropped to levels not seen since the early to mid-1980s, according to mortgage giant Fannie Mae.

Housing affordability fell nearly 9% in the third-quarter from the same period a year earlier, according to an analysis prepared for The Wall Street Journal by Moody's Economy.com, a unit of Moody's Corp., which adjusted the NAR Affordability Index for seasonal variations. Affordability dropped by more than 20% in nearly two-dozen markets, including Phoenix and Tucson, Ariz., Spokane, Wash., and Orlando and Lakeland, Fla., according to the study. "You have to go back 25 years to find a decline that is as significant on a percentage basis," says Mark Zandi, chief economist of Moody's Economy.com.

http://www.msnbc.msn.com/id/10532065/#051222

[GrpCaptMandrake]

1. How about that!

Housing hasn't been less affordable since the last Bush was screwing America!

<cue "Courtship of Eddie's Father" theme>

[No Exit]

2. He said he wants an "ownership society"

He just forgot to tell us who the owners would be. Um... not us.

[texpatriot2004]

3. He's been smoking crack again I see nm

[katejones]

4. House prices here are

Just Skyrocketing.

Although someone please tell me how that is Bush's fault?

I guess I thought it had more to do with the availability of houses verses the number of people buying them. It doesn't help when we have people from CA coming here with equity from houses sold there- it jacks prices here too.

[Zynx]

5. The fact that Bush has not done anything to curtail the housing bubble is

a problem. Financial bubbles are NEVER a good thing and the government should act before they get out of control.

True, it is more Greenspan's fault than Bush's, but Bush is not immune from criticism considering he always likes to take credit for the strong housing market.

[Bush_Eats_Beef]

6. Agreed...it's not Bush's "direct fault," but...

...given the situation, he's made far too many speeches about the "strong and gettin' stronger" economy, usually with home ownership as a centerpiece.

House flippers and speculators owning homes is not something to celebrate...unless you're a house flipper or speculator.

That's why I throw some of this on Bush. He's cooking the "strong economy" books.

[Roland99]

7. The first part shows student loans getting more unaffordable, too.

Woo hoo!!