Quote:
Originally Posted by hud 91gt
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.
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sure assuming you have something to downsize too
i have no bone to pick with this, all my properties were purchased pre 2008
whether the market drops 20-50-80%, someone else is paying for them neways