Here’s a comment that was left recently by a reader that is a good example of an outlook shared by many people who sat out the housing bubble and have been waiting for “the bottom” or something close to it: Any top or bottom call needs to mention “investor” psychology since I believe psychology is…
Tag: emotions
Has the Tide Turned Against Home Ownership?
Now seems like as good a time as any to have another look at the “Cycle of Market Emotions”: The Cycle of Market Emotions By my reckoning, in late 2007 we were somewhere between anxiety and denial, and by mid-2010 we were treading water between fear and desperation. Today I suspect we’ve made it to…
Beware the Emotional Homebuying Rollercoaster
Photo by Flickr user Justin Holzworth We spend most of our time here talking about the logical aspects of home buying—price to rent ratios, affordability, home price indices, etc.—but for most people the homebuying process is as much or more about emotions than it is about logic. Buying a home is a constant series of…
Strong Emotions on Both Sides of the Housing Bubble
Here are a pair of noteworthy comments from yesterday’s discussion about large price haircuts. photo by Flickr user allyaubry By Guest: 1. What’s up with the sudden popularity of phrases regarding debt and suffering that include the word “haircut.” 2. A “FUN” property? What exactly is “fun” about this situation. How is an inflated “boom-era”…
Treading Water Between Fear and Desperation
It’s been quite a while since we had a look at the “Cycle of Market Emotions.” The Cycle of Market Emotions Last time, in late 2007 as prices just began to decline here in the Seattle area, I pegged our location on the curve at somewhere between anxiety and denial. Today I’d guess that we’re…