Basically I understand that there are not many houses for sale right now, so supply and demand would dictate high prices. However, wouldn’t the high prices attract more people to sell? Is everyone just holding their houses hoping prices go even higher?
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The laws of supply and demand are economics 101 and not a law of physics that applies to every situation. Prices can be “sticky” for several reasons. For example I don’t want to sell my home because i love it and love my neighbors and want to die here. I don’t really care whether the housing market is doing well I’ll never sell it. Another example would be housing construction, why not just build more houses? except once you decide to build the price of things like lumber and cement skyrocket, then it takes along time to build a house by the time it’s finished the housing price might have gone down and you’ve lost money. Just because prices are surging in NYC and San Francisco doesn’t mean they are all over the country either. There are so many abandoned houses in cities like Detroit and Cleveland that the government is just bulldozing entire neighborhoods and letting them return to grass,
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