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by clomond
1759 days ago
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That’s a theory, utilizing reversion to the mean as it’s basis but it is not a rule. With different market conditions, housing prices could also correct for rental prices. Meaning if rents stay down after decoupling from an increase in housing stock value, the house prices could adjust down in the event there is over-supply and the market at the margins decides to rent rather than buy because it’s cheaper. |
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