Crash Cancelled and Gay Elephant

Really2

undercover_pillow wrote: »

I'm saving up right now for a house, how do you know when the market has properly hit rock bottom tho?

Pillow

You don't until they start to go back up. People who actually buy at the official bottom will have still put in their "offers " three months earlier.

Difficult to call so perhaps it is better when it is right for you to buy than actually trying to guess the bottom.

Lotus-eater

Generali wrote: »

It depends on how you define supply and demand really.

In your example, the price would rise thus reducing quantity bought.

So you're wrong to say demand outstrips supply: demand would fall to reflect the new market conditions.

That's not true. Take for example the Nintendo wii fit board, hell of a demand there, not enough being made, price hasn't risen. The demand has outstripped the supply. I suppose you could say, that at a price, you could buy the board on ebay etc and pay more for it* The demand is still there, just for the product at a lower, more normal price.


* I don't know if this is still true OK? and I can't be bothered to go and look.