Friday, April 22, 2011

Supply and demand

Existing home sales hit a six-year high in South Florida in March, as sellers got creative to make their properties stand out in the crowd. Prices, though, remain low. . . .

In Miami-Dade County, existing home sales reached 1,031 in the single-family market and 1,542 in the condo market in March, up 59 percent and 85 percent, respectively, over last year. According to a report released by the Miami Association of Realtors on Wednesday, those were the highest sales totals since the 2005 buying frenzy.

Broward also reached new six-year highs in March, with 1,169 home sales and 1,837 condo sales, increases of 8 percent and 25 percent, respectively.

Unreasonably high home prices resulted in a market crash, which began to recover once home prices again reflected true values, which in turn increased demand.

You can adopt any number of government programs and price supports, but the market rules of supply and demand always win in the end.

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