Question: In housing markets, there is a positive correlation between prices and trading volume. When there is a housing boom, many houses sell at, or even

In housing markets, there is a positive correlation between prices and trading volume. When there is a housing boom, many houses sell at, or even above, the prices asked by sellers. In times of bust, homes sit on the market for a long time with asking prices that exceed the prices that can reasonably be expected. How can this be explained?

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