Quote:
Originally Posted by Locke
'Bursting bubbles' dont tend to have mild economic indicators.
You ever pop a balloon? Its more like that.
This seems more like part of a market correction as part of an economic cycle.
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I disagree.
House prices can remain sticky through a change in underlying fundamentals. Prices can lag these fundamentals by months, a year.
The damage that is being done to the fundamentals of Calgary's real estate market won't immediately be seen. But the signs are there - for instance I find the collapse in volume to be a much more valuable indicator (for now) than price. The psychology of the average buyer is what we are debating here, more than than anything. And people really don't like to absorb bad news until they are forced to do so. We're not there yet - as people still believe that calgary is just going through an "adjustment".