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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (77797)	4/16/2008 3:26:05 PM
From: koan	Read Replies (1) \| Respond to of 116555

The law of supply and demand will not be violated, whether in Seattle, Portland, Nome, or New York. Exactly, the law of supply and demand. People need housing in Alaska and want to live in Portland and Seattle. Once demand exceeds supply, new houses of some sort will need to be built and they will have to reflect the new inflated costs, and what people can afford, or they cannot be built at a profit. But something will be built. Seems pretty common sensical to me. All I am saying is the new dramatic inflation will have an effect on housing prices at some point; and sooner than if there were no inflation.

To: Elroy Jetson who wrote (77797)	4/17/2008 1:57:56 AM
From: mishedlo	Respond to of 116555

I can understand how Alaska is running out of buildable land. Regardless, real estate prices in Alaska will not stray far from incomes in Alaska for very long. Real estate prices will fall back into line with incomes, unless incomes rise in a spectacular fashion in the near future. The credit-bubble and human mania made effective demand far larger than its long-term visage. This mirage will vanish over the next five years. The law of supply and demand will not be violated, whether in Seattle, Portland, Nome, or New York. Bingo! Everyone is too quick to assume "It's different here". It's not. Mish