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> If home prices are going up, that means that demand exceeds supply. If home prices are going up everywhere that means demand is exceeding supply everywhere.
by lamontcg 4y ago
> If home prices are going up, that means that demand exceeds supply. If home prices are going up everywhere that means demand is exceeding supply everywhere.
Misses the fact that homes are bought (most of the time) with borrowed money and leverage.
You can either look at that as increasing the supply of money or lowering the cost of money, and its reflection in housing prices.
- pas 4y agoSure, asset bubbles are a known phenomena. Zero-interest rate policy made a lot of big bubbles. That doesn't mean there are enough units built, or that there's no real demand. (It means the opposite, the bubble happened because it is such a good investment.)
- landoftheice 4y ago[dead]