new housing equals lower value?

["bill london" <bill_london@hotmail.com>]

I wonder, as new homes pop up like mushrooms all over Moscow, about the 
effect of those new dwellings on the prices for older homes in town.

With all those new houses on the market, have the prices of older homes 
consequently fallen?  It seems like a simple cause and effect, supply and 
demand, kind of relationship.

So, does that mean that the new houses not only result in greater strains on 
the city infrastructure (more traffic, need for a new sewage treatment 
plant, etc) but in a direct hit on my own family's equity position?  Are we 
"losing" money as our own house is lowered in value by this booming 
construction cycle?

BL
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