Natural pricing is determined by supply/demand, but prices can be artificially adjusted without regard for economic considerations. Housing is more open to art

Natural pricing is determined by supply/demand, but prices can be artificially adjusted without regard for economic considerations. Housing is more open to artificial adjustments in price, because of its fixed nature. There is only one given property at a given address and the owner can set any price they want until somebody pays irrespective of currently available demand. Everything in the housing industry is a commission rate based upon property value percentage so everybody in that business will push for the highest price possible. The only motivators to reducing pricing are timeliness and government interference. As a vaguely related example the 2008 housing crash was the result of artificially adjusted supply without regard for demand or prices. Pricing is also directly adjusted when the FED changes interest rates.