[quote=ybitz]Aye…why are prices still so high relative to people’s incomes, despite the high foreclosure rates?[/quote]
Because the money used to pay for the houses doesn’t come from the buyers – it’s “monopoly money” from lenders like the FHA. If buyers had to put up most, or even a good portion, of the money to buy a house, prices would plummet to levels that were comfortably supportable.
