Comment on Home sales are down. So why are prices at an all-time high?

elucubra@sopuli.xyz ⁨1⁩ ⁨week⁩ ago

Sticky prices probably play a major role.

“Sticky prices” refer to prices that remain fixed or change very slowly despite shifts in supply and demand or changes in the overall price level. This phenomenon is also known as nominal rigidity, and it contrasts with the theoretical expectation of prices adjusting quickly to market conditions. Sticky prices can be upwardly sticky, meaning they are resistant to falling even if market conditions suggest a price decrease." (Gemini)

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