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One other note, home prices can't keep going up at the rate they have been going up. The current state of the market may not be the peak of the bubble, but it can't keep going up forever. But someone may argue like perryair did, if demand outpaces supply then home prices/values will keep going up; if there are more new home buyers entering the market than there are new homes being built then demand will outpace supply, and homes will continue to rise. This is true, but only in a system with infinite income.
Buyers don't have infinite income to keep paying more and more for homes. Eventually, regardless of the demand... for homes, there won't be any supply... of buyers... who can afford to buy. This will be a problem for anyone unable to buy a home and for anyone wanting to sell a home. There needs to be market mobility, so people can buy a new home when changing job locations, or when people need to upsize or downsize. Buyers will be forced to lower prices to sell. Of course, the way out is to increase supply... by building more homes. Perhaps we can turn hotels and motels into cheap housing or replace the locations with homes, since their business has been hit by AirBNB and those homes are now being used as hotels.
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