Here is a two part look at a recent article in The Economist magazine about real estate markets. I tend to pick up this magazine when I travel on an airplane somewhere. I find the articles very interesting but I will admit that sometimes I don't fully understand what I might have just read.
In this case David Smith from the Affordable Housing Institute helps spell things out. Give these articles a read.
Pay special attention to the five different kinds of buyers he describes in the first article.