by Perelman, Michael -clip-
Mr. Hassett of the conservative American Enterprise Institute thinks housing prices will be pretty much O.K. He acknowledges there might be some bubble dynamics at play in some regions. But he argues that for the most part people are paying more for homes because their incomes are higher and interest rates are lower, reducing the cost to own a home. ^^^^^ CB: Sounds like he is saying people are paying more for homes because the cost of them is less. Isn't the market theory of prices supposed to be determined by supply and demand ? Yet supply of houses is not less, and demand is not more, so why higher prices , by that theory ?
