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.
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It’s nice to here some good news with all the doom and gloom out there right now. We’re dealing with mostly short sales and foreclosures here in Myrtle Beach, but as the prices come back to earth the buyers will return.
A cycle – really? A cycle is like a wave. Th emedia loves the peaks and troughs, but doesn’t ever have much to say abou the middle.