is there a correlation between the rate of sales and prices?
can we sell houses at a 1999 rate but maintain 2001-2003 prices?
esmith or Alex_Angel – care to chime in on this one?
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economics books say that prices are a function of supply and demand – if demand drops (which could be evidenced by a slower rate of sales) but supply remains the same, the textbooks say that prices will drop
in San Diego we have demand dropping (or at least a slower rate of sales) at the same time that supply is increasing (as indicated by the MLS) – textbooks would indicate that prices have nowhere to go but down
