It’s the reason why Hermes can sell $10,000 Birkin bags (which may sound incredulous to some), and yet still garner a long waiting list along with a booming resale market. Or why certain limited edition sneakers like Nike Air Jordans can enable some to rake in $30,000 a month in sales flipping these prized products. It all boils down to simply having more demand than supply. In the context of the housing market, it is because of supply and demand that contributes to the fluctuations in the property cycle. When supply is unable to keep up with demand, prices will increase. It makes perfect sense – if more people have demand for homes, then they are willing to pay more for it (just like the above examples). Of course, there is a limit to how much prices can actually increase by – demand will drop correspondingly as affordability decreases....