Isn't banks lending part of the reason why prices are so high? If no one could g... | Hacker News

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jfoster on Dec 11, 2012 | parent | context | favorite | on: You Are Naturally Short Housing

Isn't banks lending part of the reason why prices are so high? If no one could get a loan, no one would be able to pay current prices for housing.

jtc331 on Dec 11, 2012 [–]

It's not so much that no one would buy if they couldn't get a loan so much as it is that the availability of the loan causes prices to rise because demand goes up relative to supply.

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