CondoAdvisory Blog

Well this is an interesting question and it amazes me how many people have an opinion on this. Bottom line is markets go up,  markets come down. Yes in this case the increase was extreme maybe and fueled by greed maybe, but what else is new. In the end the market will bear what it can bear, even if it does not seem to make sense to everyone. We all know that the market here has not been fueled just by locals, if that were the case it could not have reached the highs it has.

I read a post today at dwot’s CAPS Blog that suggests the developers are dragging down or devaluing the market by offer these deep discounts we have heard about lately, when the re-sellers are not doingt  he same. Well the fact is the developers were charging over market prices in many cases and by dropping by 25-40% in many cases they are coming in line with the re-sellers who have come down 10-15%. So really the only way this is devaluing the market is by the fact that the marketing companies and media are presenting it in such a way that the public is lead to believe that. Bottom line is the market has come down and prices are now more level between new product and re-sale product, but the sky is still not falling and in my opinion all the talk about prices coming down even 50% is not enough and still can’t be sustained just is not going to become reality. Only time will tell of course, but markets will always work themselves out in the end and although we have some influence in the short term with hype and negative media etc. we don’t really have that influence in the long term.