British Columbia is already dealing with real estate issues
"For the first time in almost two decades, British Columbia will require real estate purchasers to disclose citizenship details starting next month, as Metro Vancouver’s red-hot housing market fuels concerns about foreign investment."
Prices dropping while the Pound weakens? Hot damn, I’m gonna buy me a hotel on St. James Place!
If you ask me, this is a good thing.
/ I’ll annotate later, after I’ve finished the house chores.
And I’m sure all those sites which were going to sprout oligarch towers will now be turned over for the social and affordable housing that London desperately needs.
More likely to be surrounded by armed guards and razor wire while the nominal owners squabble in court over the remnants.
Certainly the 1% ers can afford a big hit on their wealth more than the rest of us, but to me it seems like percentage-wise this is likely to hit the high end of the market more than the lower end. Just the reverse of the RE bubble in the US, which was exacerbated by looser lending standards, so it was houses in the lower end of the market which shot up and crashed down the most, on a percentage basis.
As far as individual owners are concerned, definitely. Let’s just hope that not too many people were persuaded to put money they will actually need one day into the wrong funds.
Even without a sound statistical footing, these stories are important,
anecdotes aren’t data, but we’re going to pretend they’re relevant anyway.
Ironically, exactly yes, because the people who are most likely to start a crash are the nervous ones that hear stories like this one and make an emotionally-charged decision to start offloading, even when there are no available statistics. Anecdote might not be the singular of data, but they are the pickaxes that undermine economic confidence and cause bubbles to burst, in the very way in which “A lie can travel 'round the earth while the truth is still getting its boots on.”
What made the London property bubble was the perception that it was stable, valuable, and in demand. If that perception is challenged, even by untruths and anecdotes, all it takes is a few nervous investors deciding to get out at the same time to start a stampede and pop the bubble.
So they’re relevant because the great voodoo science of economics, and its heavy reliance on “consumer perception” in markets like London real estate, makes them relevant.
Ironic, ain’t it?
Oh, the humanity!
Anecdotes are data, they’re just not verified or converted into a form that’s statistically handy.
Economics is fine, it’s macroeconomics that is full of woo because it’s basically irrational. The laws of supply and demand continue to operate, but irrational factors fuel demand. Kipling wrote a verse about it - The gods of the copybook headings.
London house prices were getting to be a complete joke because they were founded on a self perpetuating cycle without anything underlying them for which there is a fundamental human need. The same contagion could spread to San Francisco once people realise that they is no huge unmet need for social media, and that Chinese consumer electronics are pretty good these days.
Nice soundbite, but what’s the source for this? (Presumably this is the southeast of England, rather than southeast London).
Mmm, I’m sure someone will find a way to socialize all losses.
One step away, the perception that others had the perception that it was all of those things.
Agh, you have posted a picture of the well paid talking points machine.
Not by choice, its part of the article
I will believe anything that Christy Clark says, a year AFTER it becomes a reality.
But did you sell your place in London, @doctorow, when you left?