“Now he’s gone and bought a place! Is the Anglo-American ownership obsession that strong that even when you know you shouldn’t be buying you do anyway?”

“My old boss recently got transferred to Toronto and has been providing a steady stream of Facebook updates regarding the RE market there – how he can’t believe he’s moving there at the peak of the bubble, how he’ll need to rob a bank, etc, and now he’s gone and bought a place! Is the Anglo-American ownership obsession that strong that even when you know you shouldn’t be buying you do anyway?”
CanuckDownUnder at VCI 6 Jul 2012 7:21pm

Yes, the ownership obsession is that strong.
Also, people have poor understanding of how they will behave under different circumstances.
Those who ‘know’ they’ll not buy end up buying; those who are certain they’ll “sit pat through the downturn” end up coming to market at 30%-off.
– vreaa

12 responses to ““Now he’s gone and bought a place! Is the Anglo-American ownership obsession that strong that even when you know you shouldn’t be buying you do anyway?”

  1. The majority of buyers enter at the peak of the market, just like they did with Nortel, RIM, ENRON, Tulip bubble, dot.com bubble, the list is endless. This is human nature. Pure stupidity, greed and “follow the CROWD syndrome’

  2. Relaxed & Happy Islander

    maybe his old boss saw a scream of a deal like this like V942894: “LAST WEEKEND TO GET THIS SUITE!……OTTAWA TIGHTENING MORTGAGE RULES JULY 9TH GET YOUR DEAL DONE BEFORE THIS DATE”
    sorry, not sure how to link to this kits condo @ $527k, but this listing was pointed out to me this morning – July 10th…

  3. The latest realtor pitch is that we’re in a–get this–“compressing” market. It won’t last, act now! Blah, blah…

  4. Negative target acquisition. Focus on something hard enough and you may reflexively acquire it – even if your obsession was negative.

    Most economic theories are fundamentally wrong because they assume that man is a rational actor. This is a perfect example of a smart person who has access to information and draws reasonable conclusions – then ignores it all and does exactly the wrong thing.

  5. Ralph Cramdown

    It was the only logical thing to do, what with The Star reporting that rents are increasing at $25/month.
    http://www.thestar.com/business/article/1224026–gta-home-resale-prices-overheat-due-to-land-shortage

    Bonus points for anyone who can figure out the economist/shill’s methodology:
    http://www.wdunning.com/docs/WD-Report-2012-07-10.pdf

  6. Humans are social creatures. We do what’s expected of us. Only the oddballs want to be contrarian investors.

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