If Bush's economy is so good, why are the prices and number of sales for homes is dropping?

Question

In a booming economy, people buy homes even if the prices are going up, not lower the prices to get someone to buy yours.

Answer 1

Supply and demand.... simple as that.

Answer 2

Since the price of both new and used homes has sky rocketed in the last 6 years why would you not want the price to go down, unless, you are disgruntled seller.

Let's face it, real estate is out of control and has little to do with the administrations ideas of how the economy works. Sure economics have been working in Bush's favor but, if it's not a government regulated industry, it's the market,not the government that drives the price.

Typically, people are happy when they can buy or sell at a price they like but when pricing doesn't go in their favor, blaming the government is the first line of defense. Seems to me that, no one blames liberals or conservatives when they get what they want!

Answer 3

I agree with one of the other responders. Your question is too much of a "tunnel vision". On a national and global level you have to look at bigger indicators of how healthy an economy is. Things such as tax revenues (Bush's tax policies) which are increasing at a very healthy pace in spite of the "hated by liberal, socialist democrats" Bush tax cuts. You look at deficits, which are declining dramatically, due in large part to increased tax revenues. While new home sales may be declining somewhat, the number of first time home buyers continues to increase. The overall confidence in the stock markets continues to increase and that market, in just about all sectors is healthy and growing. The list could go on and on, but if you are really honest in your question then I'll leave the heavy research for you to do.
I am a real estate investor. An actual investor, not one of those midnight infomercial suckers. I own investment property. One of the things that I do is buy houses, make repairs or upgrade them into a marketable condition and resell them. I bought a house with this in mind about the time that the secondary housing market began to weaken and decline. It took a year of marketing the house to get a buyer to submit a contract on it. But, the contract I received is only slightly below what I was asking for the house (fair market value as supported by appraisal). So don't believe all you read in the papers about the supposed housing market crash. Yes it is correcting for some pretty inflated pricing on a national level, but it isn't as bad as the "fear mongering" liberal press would want you to believe. The housing market in many areas is still appreciating somewhat or experiencing only slight levelling or depreciation.
There is so much good news out there to report about on the economy, the liberal press naturally chooses a sector that is going through a free market correction to report on and then they blow that out of porportion. Why? Well, they couldn't say anything nice about Bush now could they...even if it is true.

Answer 4

In some markets, it's a correction for over-inflated home values. The homes prices escalated too high and this is a correction.
The other problem is that the media keeps talking about the bottom falling out of the housing market and is scaring everyone away. I wish they would stick to what is actually going on and stop speculating on what the future holds.

Answer 5

Home sales are hardly the only measuring stick by which economies are measured. You're better off asking why the dollar's exchange rates against the UK pound and the Euro have sunk so much.