On Jul 14, 10:22*pm, Chris Hill
wrote:
On Mon, 13 Jul 2009 10:34:02 -0700 (PDT), Cindy Hamilton

wrote:

Housing prices are based on what people are willing to pay. *People
with money are willing to pay a lot for houses. *Therefore, those
piles of wood (or, in my case, concrete) are worth hundreds of
thousands of dollars.

No, it usually isn't people with money buying houses. *It is people
who can borrow money. *If they had to pay the same money out of their
own pockets, they would likely be a lot more careful about what was
purchased.

Typically, it's the same thing. Not so much lately, but it's always
been
the case that banks only lend money to people who have money.

I have a mortgage. It is the same money (and more) out of my own
pocket.
We were quite careful each time we bought a house. (If only everyone
were.)

Still, there's no vast conspiracy to raise housing prices. Just the
market at work.