“A relative of mine was caught chasing the “boom” in Calgary a couple of years ago (2006). He bought 2 houses (one to live in and one as an investment) and a condo. He subsequently took a huge hit on all three when he was forced to move to Vancouver nearly 2 years ago. The properties all became completely illiquid a couple of years ago. He listed one house 5 times, with lower prices each time until he finally unloaded it, last month, at a huge loss.
Swore he would never buy again. Guess what. He’s back, now in Vancouver, buying at another crest.
Oh yeah, when he moved to Vancouver, he took a rather large (20%) salary cut.
Some people never learn. And the streets seem to be littered with these stories here in Calgary.”
– LJ at VREAA 1 April 2012 11:37am
One has to stand in awe of the power and perversity of market psychology.
This anecdote reminds one of the recent discussion on these pages where commenters likened RE speculation to addiction.