Quote:
Originally Posted by OracleOfCalgary
Look, things are good in Alberta, and if it weren't for the speculative bubble, I would have expected a long and gradual increase in prices over the long term. The RE bubble, however, has ruined all that and I think may damage the larger economy as a whole. $70 oil and $180 billion projects have become a rationalization for the high prices rather than the actual reason.
30 day trailing average price is down another $2K since yesterday. Median is down $1K.
|
Speculation is buying stuff on rumour or speculating that something will happen (ie that a lumber mill is going to be built in Town A, or a car factory in Town B, or that this country is going to become the next hot vacation spot).. Having the economy be strong, many jobs being created, etc isn't a result of speculation, it's real economics that are supporting the current market.
You call it a bubble but you don't provide anything to support it. During the high tech bubble it was obvious things weren't real; companies trading for huge amounts with no forseeable possibility of them ever making a real profit, etc. What stats do you see here that show you it's a bubble? Why is this the beginning of a crash rather than a normal market taking a breath?
You say high oil and all those projects are a rationalization... is 86,000 new jobs a rationalization too? Or the population of Red Deer moving to Alberta, all of whom need to buy or rent a place to live, that's speculation? Supply and demand.
But if those aren't the reasons, please share what's the real cause of this run up? You can't just say "speculation" because that doesn't mean anything. Please give some support for your position.