[JoeAltmaier]

Land prices determine the larger share of a house price. That depends on what other purposes than housing, the land can be put to. Also infrastructure cost, taxes and transportation.

And nobody is going to build a new house if they can't make good money on it. So its all tied up in interest rates, expected rate of return for capital etc.

Supply can matter say in a depressed area where folks are in a hurry to get out from under a mortgage. But nobody is making money there. Its not a typical house price at all.