Question:
“If prices keep going up like this nobody will be able to afford to buy a home…”
Answer:
That reminds me of a quote by famed Yankee slugger and English-mangler Yogi Berra. When asked why he no longer went to Ruggeri’s, a popular St. Louis restaurant, he said:
“Nobody goes there anymore. It’s too crowded.”
Here’s where I’m going with this…
In a free market, “equilibrium price” is the price that balances supply and demand. If it were possible for the price to rise above the equilibrium price, then the demand would decrease, pulling the price down to the equilibrium price.
Simply put, in a free market the price cannot rise higher than what buyers can and will pay.
So your statement is as illogical as what good old Yogi Berra said.
(Sorry, I couldn’t think of a warmer and fuzzier way to say that.)
