Housing prices are going up but its not what you think.
Rich people have never stopped buying houses because of the price. Poor people do, and in this area, that also includes those of us that know better.
If nobody buys a house at the low end, there is no average down from the rich guy purchase price. The net effect is a rise in the purchase price.
So if you carry it to an extreme, say only two houses sold at 1 million apiece, you would have a very skewed average purchase price.
In order to see the effect, you need to take the number of houses purchased times the average price and compare them to a previous time. This will reflect a better picture of what is happening.
