March 29, 2010

Are you looking for a new home? Do you feel that you have been fuelled by a “false sense of urgency”?

Here is an interesting quote from Derek DeCloet, in the editorial “Tone down the real estate speeches” in the Globe and Mail:

A funny thing happens to people when an economic or financial trend holds in place for a very long time. They begin to assume that “a long time” equals “forever.” You can see this clearly in the U.S. Its home prices hadn’t declined on a national level since the Great Depression, so buyers and rating agencies assumed they could never go down – until they did.

And though the case for a real estate bubble here is not clear cut, one can’t help but wonder if Canadians are falling into a similar complacency trap. How do agents play into that? Too often, by fuelling a false sense of urgency.

I guess it is an unfair question to ask, as the “false sense of urgency” can not really been measured until it is too late.

Developments featured in this article

More Like This

Facebook Chatter