Wednesday, December 1, 2010

"Realtors Are Sprinkling the Fairy Dust of False Hope"

Says the author of the article Cowtown Moment at

As the market turns, it's important to remember that realtors play a very specific role: closing deals. That's the only thing they get paid for. That means they actively cheerlead buyers when they is a dearth of them. This will end up making them look bad, but there is no helping that. They are under no incentive to act otherwise.

“I firmly believe that we’re going to see more growth and activity probably not too early in 2011,” says local cartel president Diane Scott, “but I think about February or March we’re going to see a lot of people coming off the fence.” She bases that on, well, nothing.

Deja vu from the U.S. crash. Regency effect lives on.

If Calgary lacks an overhang from the bubble, these wishful sellers may be okay in five years. If the price of oil cooperates. On the other hand, six months and a 25% drop from now, they may kick themselves for not simply dropping their listing price 15k a week and getting out fast.

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