That's a good question. I'm not sure what the answer is. However, I do know that a relatively small change in the number of buyers/sellers can make a big difference in the price of a good (or a home).

I believe that Friedman's point is that this may have contributed to the ruise in prices. I doubt it was a major factor, but may have had some effect at the margin.
The Unknown Professor | Homepage | 08.25.05 - 9:38 pm | #

Do you really think that the number of new home buyers who have a capital gain on the old house of over $500,000 (married filing jointly) is that significant?
thc | Homepage | 08.25.05 - 5:49 pm | #