The price of anything in a free market is determined by supply and demand. More demand relative to supply, and prices go up. More supply, they go down.
So what does it say about our housing market when both supply and prices fell in 2011?
NAR reported that the median price for existing home sales in December was down 2.5% year-over-year.
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
At the same time, the the supply of homes for sale is rapidly contracting. From Calculated Risk.
Read More: http://bayarearealestatetrends.com/2012/01/20/what-would-have-happened-if-housing-inventory-wasnt-down-so-much/