The papers this morning express surprise over an increase in home sales in Dec. of 6.5%, triggered by a decline in home prices. Gee, what an amazing idea! Prices decline and people buy more! A new concept -- shall we call it supply and demand?
Also interesting -- the National Association of Realtors says:
A 15% decline does not seem too serious. As I recall, that is about the decline necessary to restore real estate prices to their long term trendline. What happened to all the predictions about prices being in free fall, yada, yada?