Quote:
Originally Posted by ncrx
No buyers, no sellers
people who arent in need of selling simply won't sell.. i dont see how someone is going to realize an immediate 20% loss unless they're in dire circumstances forcing them to sell
just b/c sales numbers are ugly doesn't mean suddenly everyone's dropping their house on the market for a fat discount
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I think what your missing is the fact people are not robots. Just like people jump in in fear of missing out, they will also jump out in fear of a drop. It's a domino effect. People who just made 40% equity
On their house in a year aren't all that concerned to lose a few percentage points if they think they can outsmart the market, especially if they are stretched (which most Canadians are).
edit: Jason put it much more eloquently.