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The housing price conundrum

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Uploaded by on Mar 15, 2008

Why did housing prices go up so much from 2000-2006 even though classical supply/demand would not have called for it

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  • Builder fraud. Organized crime. Mortgage fraud. False, inflated appraisals.

  • Cost to build the homes during this period the USA was at war with IRAQ and AFGHANISTAN that is expensive and caused materials to > in price. Another driver in demand is the divorce rate if we had > divorces then that would mean that there would be > demand for housing? Crime rate too can be a factor in demand people move when trouble brews they just will not tough it out. The one I don't get are car prices they should not be so high?Ron Paul 2012

  • This makes no sense at all to me.

  • 3:26 - Let me see if I can get it up...

  • People use to buy house to live in it. Not the case now.

  • All the flipping houses fucked everything up, the houses are way too overpriced compared to income. Also the housing dirivitive are another money leak. What a friggin joke real estate is it's gambling that hurts everyone.

  • @Wamy85 I agree.

  • I think he is off by a factor of "10" on the housing growth, as 2k/month*12 <= 1.8M, also, there is a replacement of old houses, - so the actual stock of houses could have dropped.- this Vid needs more research

  • Isnt it a mistake at 5:00-5:30 ish where he summarises the NYT article? Population grew, income per capita fell, so total "money available" fell 3% not 1.4%. 1.4% was the drop in income per tax filing.

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