These insane real estate prices

At desirable places, real estate prices are insane; they keep on climbing even though the number of sales seem to stagnate, that economic reality appears to have no effect on the law of supply and demand, which normally should turn prices down.

At the same time, real estate in undesirable places can't seem to appreciate and not much selling is going on there, either. This is true within two countries that I know well: France and the United States.

Urban areas with a healthy job market and recreational places by the sea, or in the mountains, are enjoying these skyrocketing prices that seem impervious to interest hikes that are now pushing up again.

These seemingly contradictory trends would suggest that with more super-rich individuals coveting the same quantity of prime real estate, that trend is likely to stay.

So the takeaway is that the old adage: “location, location, location” has never been so potent and with a growing world population, the good real estate is likely to remain in very short supply and its price pushing up higher and higher.