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A comment on Why the government took home prices out of its main inflation index. Parent comment

Re:Why the government took home prices out of its main infla... by NumberWangMan on Friday May 27, 2022 @02:02PM (#31532692)
Respectfully, this doesn't prove that the law of supply and demand no longer applies. Any individual seller may choose not to decrease their prices -- but if they do it long enough, they run out of money and are forced to sell.

It's also difficult to tease out the effect of general price inflation. If house prices stay stagnant but currency is devauled, prices are decreasing in real terms.

[ Parent | on HN ]
Re:Why the government took home prices out of its main infla... by jkmcf on Friday May 27, 2022 @06:00PM (#31535427)
Some places have tax breaks for unoccupied property rentals. Instead of lowering prices they leave them high and break even on the losses (or close enough such that they weather the short term until demand at their preferred price is reached)
[ Parent | on HN ]