“I stopped by my old job to visit. Boss mentions Vancouver RE. Says that he doesn’t think it’s going to go down because it’s been recession-proof. Doesn’t think it’s going to go any higher mind you, thinks it should stay the same for awhile. Also buys into investor-immigrant theory.
He agrees it’s a bubble (but I’m not quite sure he understands the full implications). It might be that by bubble he means it’s just unreasonably high. He’s an intelligent person, but he bought in 2009 so he’s highly leveraged, financially and opinion-wise. Changing his POV might be admitting to a gargantuan mistake.
Kind of upsetting since he’s a relatively new/young researcher, and the size of the mortgage will probably detrimentally impact his family’s life.
Sometimes I think along the same lines, but I can’t bring myself to seriously believe it. There’s just no way he can be right. This has to end sometime and it won’t end in a flat-line. It’s not that I want to say “I told you so” to him, I just wish others didn’t fall into the same trap. The longer this goes on, the more people become absorbed, and the harder the eventual fall.”
- Moe at VREAA 31 Oct 2011 12:20pm
There is a subgroup of owners who see that the market is frothy, but woefully underestimate the kind of collapse that happens when a speculative mania ends. These are the folks anticipating a 10%-15% pullback, ‘tops’. – vreaa