As Good As SOLD

Tipping Theory

August 23rd, 2007

With the news that the average price of a local home has now escalated past $500,000, one wonders if there is any way to isolate one cause, one reason, and say “That’s why!” You think it can be put down to plain old supply and demand? Cheap money, a strong economy or a growing population?

I don’t think so.

This from an American website musing on the same phenomenon:

“There’s a boom in property because the Chinese haven’t begun to export houses…and because people don’t trust stocks as much as they used to…and because the Federal Reserve cut rates 13 times in 18 months…and because the dollar is the world’s reserve currency…and because Richard Nixon cut the dollar loose from gold in 1971…and because Congress didn’t know what it was doing…and because General von Kluck took a wrong turn at the Marne River…and because Archduke Ferdinand’s driver lost his way…and because the Indians were defeated…and because the French were defeated by the Engish at Quebec…and because Christopher Columbus made a big mistake…and because industrial development began in Europe rather than in Asia…and because the Crusades put Europeans in touch with Arab civilization…and because someone figured out how to power a boat using the wind…and because there are animals that could be domesticated…and because homo sapiens somehow triumphed over the other species…and because the Earth is neither too hot nor too cold, permitting water to remain in its liquid state…and because the Big Bang didn’t blow us to smithereens!”

There. Hope that helps.

Entry Filed under: Real Estate Matters