Reported 12 months ago
The US housing market is defying the basic principle of supply and demand as home prices reach record highs in May despite a drop in existing home sales and an increase in available homes for sale. Economist David Rosenberg describes the current state as 'a real head-scratcher' and mentions the housing market has entered a strange phase where the traditional laws of supply and demand no longer seem to apply. Some experts predict a potential decline in housing prices due to high mortgage rates, while others believe prices will continue to rise after expected interest rate cuts by the Federal Reserve.
Source: YAHOO