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I'm not too familiar with these places, but when looking at these graphs during the price increases before the bust (i.e. without the benefit of hindsight), cou
by gms 18y ago
I'm not too familiar with these places, but when looking at these graphs during the price increases before the bust (i.e. without the benefit of hindsight), could one not also realistically explain it as 'demand > supply'?
- ChaitanyaSai 18y agoYeah, but housing demand can usually be pegged to income, which has been flat. Speculator demand is what explains the price rise and that demand is what makes a bubble. That is only part of the reason. Artificial demand was created by lowering mortgage standards allowing many more "fake bidders" into the market. Check this out http://www.mortgagecorp.com/noincomenoasset.php http://www.mortgagecorp.com/noincomenoasset.php