"This is one of the bad effects of overheated big-urban markets. The warped perspectives mess things up everywhere!"

Nancy at greaterfool.ca 10 Mar 2010 8:51 am -

“I am trying to persuade a young Vancouver couple (2 young kids, self-employed) not to buy a house in Kingston, Ontario this spring, but to wait till the fall. They can’t afford to rent let alone buy in Vancouver, so they’re getting out. Good idea. Kingston is very affordable with a great quality of life. But the 5/35 mortgages and low interest rates mean even houses here are inflated. Because they’re in Vancouver, they think a midtown house is a steal at $250,000. I can’t persuade them they’re out of their minds, and they’ll see that price drop $50-70G over the next two years. This is one of the other bad effects of overheated big-urban markets. They bring their warped perspectives here and mess things up everywhere!”

[Via http://vreaa.wordpress.com]