In spite of the very tough economic times in which we currently exist, the basic microeconomic forces of the market are still very much at work. See this news release from The Wall Street Journal which indicates that as home prices fall, home sales rise.
Home prices are down 15% from a year ago and this has caused home sales to rise 6.5% from just last month. The upside to the bursting of the housing bubble is that many more people will be able to truly afford houses if they can just avoid being laid off.
Apparently, in this year of the Obamessiah, supply and demand are still related. I hear the ghosts of Adam Smith and Milton Friedman chuckling softly.
