The Real Estate Paradox

No one is buying, but it still costs a lot.

We’ve now completed roughly four years of exceptionally low sales volumes, last seen on a comparable basis around 2011.

But prices sit at record highs.

Econ 101 can remain accredited. Crush both demand and supply, and price doesn’t necessarily fall. In this case, it rose, though, as last week’s data showed, not as fast as inflation.

So housing has achieved the unusual combination of being both expensive and difficult to sell.

As always, the national picture hides plenty of exceptions. Specific metro areas are doing just fine, and some are flourishing.

Happy Trading!

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