Headline:

Housing Affordability at Record High

The key mislead is actually stated in this article: This Index which attempts to measure that which can't really be measured on a national basis has only been kept since 1971. And in my opinion, affordability as measured in the ability to procure and pay debt is pretty messed up.

Do you know that once upon a time most people of modest means actually paid cash for houses and did not sell their soul to the devil for a place to live. Some people actually still do pay cash and I am not talking about those who make regular runs down to Mexico.

But somehow many people of modest means and even the rich no longer wanted to buy what they could afford to pay cash for. No. Whether a person was earning $45,000 a year or $30 million a year, they went in debt when setting up their nest. It is crazy. And in the old days even those who couldn't pay cash for the full purchase, saved up enough to make sure their payments would not exceed a certain amount. But that became more of the exception than the rule.

And back in those days people could actually expect a regular increase in incomes so that even if they did take on a 30 year mortgage, by the time the mortgage was 15 years old their monthly payments in no way remained a strain on their lifestyle. In many cases they had the money to also buy a summer place and without having to sell a kidney.

So when they release a headline that says: Housing Affordability at Record High

That is such total bullshit put out by the Real Estate Industry. But you can't really blame them. I mean, really. Bless their souls and pointed little high heel shoes walking their asses off trying to sell a house. Got to feel sorry for them. :-)