Quote:
Originally Posted by afc wimbledon
Real estate markets always crash eventually, it's the nature of the market, it's inhabited by the inexpert home owner that has all his/her asserts tied up in one major investment, their house.
Home owners are, by nature, overly optimistic when the markets going up and panicky as hell when it drops.
When the Vancouver markets stutters thousands of vancouverites who have counted on their homes to cover all their debt and pay for their retirement will freak out and desperatly try and sell their houses as quickly as possible. This causes the crash, it has nothing to do with underlying market conditions, or the over all economy, it's just the herd mentality when the scary tiger of destitution appears.
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I understand what you are saying however a "crash" in Vancouver doesnt mean the Canadian Economy falls off a cliff. A correction in oil prices which slows Alberta's economy doesnt mean the Canadian economy falls off a cliff. While some areas falter, others will see benefit.
As soon as I read " I was in Canada not long ago and noticed .... " I knew it was going to ruffle some of my feathers