Insight into Skyrocketing Home Prices from Andrew Friedson

Published: March 31, 2022

Andrew Friedson, Associate Professor of Economics, said a notable shortage of new homes coming on the market can cause price spikes, creating a sort of self-fulfilling collective psychology. “Prices are made up, right?” Friedson said. “If what you have is realtors convincing a critical mass of people to bid very large numbers, then those very large numbers become the price.”

Home prices skyrocketed again in Denver and Colorado Springs in February, but people kept buying them anyway
Colorado Public Radio, March 23