Wednesday, June 6, 2012

Victoria and Psychology of Bears

Here's another attempt at posting. Blogger massacred the first attempt.

Victoria first. Down in Average and Median for SFH YOY, not to mention Townhomes and Condos. Not insignificant drops. From the VREB site:

Tablular representation of sales statistics from the last two months and from last year
Now to psychology. There is some softness in the RE market. It started in the Ok and Whistler and Sunshine Coast and has now arrived in Vancouver with high inventory and a big drop in the averages YOY. However there is skepticism in the ranks of the bears." China will reflate and more hot money will come here..the government will intervene again to save RE...rates need to go up for a drop and they won't" etc etc

This is all good. We need skepticism.

Remember 2008 when RE went 'no bid' up here? The bears were clicking their heels in victory and we know what happened next..a 25% rise in prices s ZIRP, CMHC and HAM pushed us up to another peak. Corrections start with doubt not bravado. We want slow and steady - more of the same please.