- Joined
- Jul 25, 2012
- Posts
- 10,167
Good points but don't overlook the effect of low interest rates on housing. Rates have been extraordinarily low for well over a decade. Combine that with relaxed down-payment minimums and other than for a year or two after the 2008 crash there has been continual upwards pressure on house prices. Most people buy homes based on the monthly payment they can afford, not the price of the house.
It wasn't really meant to be a scientific look at recent house price rises, it was more an example of the principal in action I guess. For instance it annoys me when I walk down a bar district and they have guys/girls outside handing out flyers to try and entice drinkers in. Every bar has one of these guys, and there are the same number of people wanting to go for a drink, so no extra drinks are consumed, just a whole line of people carrying out jobs that nullify each other for the sake of it, and pestering customers in the process, just because one bar owner got greedy sometime in the past.