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Subject:  Re: The Global Housing Boom Date:  2/16/2006  1:20 PM
Author:  pussinboots1 Number:  7585 of 14295

High inventory is evidence of more sellers than buyers

W/o context, it's impossible to know what "high" means. Inventory is going up, but does that mean we're moving from too much demand to a more balanced scenario, or are we moving from a balance to an oversupply? History helps us answer those questions.

What more useful evidence do you have for an up-coming slow period with flat-to-slightly-increasing prices ... in many areas, except that you believe that that is what is going to happen?

The fact that the U.S. has never seen country-wide year-to-year average prices fall. The fact that long-term rates remain near historic lows. And, the fact that short-term rates are as high or higher than long-term rates---speculative demand only thrives when short-term rates are much lower than long-term rates.

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