This time around, supply is in check and low interest rates are keeping demand high.
In addition, he said there has been limited new construction, keeping demand ahead of supply.
The supply of debt may be recovering, but a shortage of confidence on the part of companies is keeping demand subdued.
All these factors are driving the market and, despite the addition of new space, keeping demand ahead of supply, he said.
It's important to realize, by the way, that stagnant wages are NOT good for recovery; all they do is ensure that the burden of debt relative to income remains high, keeping demand and employment down.
Even in normal circumstances, keeping demand and supply in balance is hard to achieve, which is why house prices have tended to rise more quickly than the cost of living overall.
While it fell to $1.447 a gallon in August, it is rising again as the strong economy and the popularity of low-mileage vehicles like sport utility vehicles are keeping demand strong.
a) sometimes you have to spend money to make money- keeping demand up/investing in well structured (less financial service driven) economy etc. b) most families don't enjoy a gini coefficient of 0.4.
"It's going to take a while for the wider economy to recover, but there are enough people to make a difference at the high end of the housing market," keeping demand high, said Steve Levy, director of the Center for Continuing Study of the California Economy, a think tank in Palo Alto, where the median single-family home price last week was $1,838,750.
A shock which blasts America's stockmarkets back upwards, which may encourage investors to believe that the Fed will protect them from risk even if it means keeping demand in the economy growing faster than supply, not merely delays the necessary economic adjustment, it runs the clear risk of worsening the existing financial stresses.
