[PEN-L:33166] Re: Re: FW: housing bubble?

[Doug Henwood <dhenwood@xxxxxxxxx>]

Eugene Coyle wrote:

> The most persuasive is that the cost of constructing a new house --
> if lower than the price of a house -- would prevent a bubble as
> profitable new construction flooded in to keep the prices from
> bubbling.

But the market is mainly about existing houses, which are about 80%
of the turnover in unit terms. You'd have to build a lot of houses.

Doug