Reply #5: Always look on the bright side! This story is deceptive. Prices are falling which makes it possible [View All]

[AP]

to say things like this. However, the fact is that lenders are requiring 20% down to buy a house now, and not a lot of people are able to afford that, so prices are falling...and sales are also falling. If fewer people are buying because fewer people have the upfront money to purchase a home, what does it matter that this income-based (and not available assets + income) measure concludes that more people should be able to afford a home?

The California Realtors Association sent out this press release to keep people optimistic about the market, and a lot of media outlets are doing them a favor by printing this without any critical commentary about the logic...