Posted by asicsning
This problem need to ask? Basically there is no need to ask, as long as it is a normal person, who doesn't know the answer? If say clearly to rip this problem, of course, is the first cry fall in house prices these Shouting house prices will rise every day. Because, quite simply, these people to falling house prices would have scared scared, he at the real estate market was frightened, in fact, they face the market falls, can only take any means to confuse, to tell the market, said prices how do not fall, if house prices fall, will be how to who, can let who to cry first. But the things on the market, are each independent decision-making, is a people according to their own situation to judge, don't need others to tell him what is going on. More don't need people to tell him the price change will have much influence on their. But why would these online on the Internet every day, said house prices fall who first cry, is that they need to cry, want to let others by means of confusing to replace these people crying. On the contrary, the more they shout, so the more to prove his panic in the heart, the more that these people want to cry. Also, the market common sense would have let everyone knows that, if house prices fall, for public consumption that buy a house, the house purchase, the price of the use of utility doesn't increase also won't reduce. Falling home prices of housing consumption to them don't have much meaning. But for the vast majority of people not to buy, which will have a people will tell the market, as long as they want to buy high price of house is not willing to buy low price of the house? Any consumer, buy goods, in the same quality, the price must be lower, the better. In this case, any consumer to buy a house, into the market when prices are low, in the same currency can buy more things or products, Mr. Hursh for? Don't they will want to? Falling house prices, of course, the first cry in addition to these online everyday to house prices are rising, and the market at present a large number of real estate investors and real estate developers. Because, real estate as an investment, they are people who need to pick them up to the last bar, otherwise, their own hands not trouble? According to Gordon's classic asset pricing theory, the price of the asset in income and interest rates in the future value of the assets, and the two is not observed. Therefore, the market value of the housing to basically is to use the objective data is easy to find its equilibrium value, for predicting the future trend of these variables benefit suggests investors more subjective mood. That is to say, for the price of housing can not use the objective data to find the market equilibrium price, the price of housing is the result of investors' subjective emotion. Why is easy to cause huge asset price volatility, the reason lies in here. Investors are very familiar with, Wall Street has a famous saying, the market is driven by two forces: greed and fear.
Posted: 12:00 am, July 6th, 2014 in New York City
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