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The most obvious explanations is that housing prices have reached an unsustainable height and people are just declining to participate in the market (presumably they're putting up with cramped living quarters, moving away from big cities, or renting in an increasingly monopolized and price-gouging rental market). Rising interest rates are likely also spooking potential buyers. The exciting part is that if this is a bursting bubble, then there will be lots of speculators who paid too much for houses who are overleveraged and getting worried, and if they start to sell, it could trigger a cascade of sell-offs that tank the market altogether. Existing-home sales dropped in June for a third st... Full story

11 October