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Comment by graemep

1 day ago

The main reason for high prices is not shortages, its low interest rates.

Interest rates have gone up and housing prices haven't changed much. The average monthly mortgage payment for 20% down 30 year fixed mortgages have shot up though. Something makes me feel like it's not just interest rates.

It's remarkable to see how intuitive supply and demand laws are for many individuals until it comes to one particular market: housing.

  • Are you being sarcastic? Housing is a good example of how people fail to understand supply and demand. People usually talk as though supply and demand are fixed quantities rather than curves against price.