Demand goes up, and prices go up with it. But eventually prices go too high and demand slakes off. (Then the media comes in to announce the "crisis.")

But then — and this is that cycle thing at work — prices drop and demand increases again.

And what do you know:

More Americans waded into the housing market last month, lured by falling prices that helped send sales to their highest level since February.

At least a third of properties bought in July involved foreclosed homes snapped up at bargain-basement prices or homes sold at a loss by owners who had no alternative, according to the private National Association of Realtors.

(From The New York Times)

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