On tipping points

Markets are pretty efficient things. For a while, I’ve been wondering what everybody in the condo market was thinking, doubling the supply every year while also doubling the price. I mean, $700,000 for some granite countertops in a neighborhood you wouldn’t have parked in five years ago?

"The Bad News on Condos: Market Beset By Declining Sales, Foreclosures"

Ah, equilibrium.

Incidentally, I’m very interested by the new book "Pop!: Why Bubbles are Great for the Economy" by Daniel Gross. So many people have been expressing chagrin about the correction that will undoubtedly visit real estate (I mean, 38% increases in value every year?) but I think  it’s about the same as getting upset that your blood pressure is going down to normal.

The key is balance. Because points tip, and markets are pretty efficient.