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Is it simply supply and demand? Globe article

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i have been discussing this a lot with my girlfriend lately. i had no idea that the new housing rate was so much lower between 2000 and 2004 compared to the national average. that's definitely not helping matters. it really does seem that there will be a sharp short-term decline in property values if and when interest rates get bumped up. i wonder how many people who have bought a house they couldn't afford will be screwed when that time comes.

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