Housing prices in Boston

The front page of the Globe today says there is a record glut of houses in the Boston area. The forecast prices will fall. As you read through the article, it mentions that MA lost 19K residence between 2003-2005 as people moved to (cheaper) New Hampshire and Vermont, or moved to other parts of the country (Florida, North Carolina). In addition, New England has an old population, and as they age people are trying to move to smaller homes or they head south and west for retirement.

I don't know how a shrinking population can support the doubling of housing prices Boston saw between 2000-2005, unless stock has been taken out of the market by tearing houses down, which I do not think has happened.