The US housing market is distorting a core principal of economics: supply and demand.
Home prices soared to record highs in May, even as existing home sales fell and supply of homes for sale jumped.
AdvertisementThe US housing market has officially entered bizzaro world.
The law of supply and demand is a basic principle of any free market, and right now, it's being subverted by strange happenings in the real estate market.
"When it comes to the housing market, the laws of supply and demand don't seem to apply any longer," economist David Rosenberg said in a note this week.
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