Mix of media sensationalism and psychology to blame for Vancouver real-estate hysteria, economist suggests
This morning (August 25) a blog post by a U.S.-based economist caught my attention.
“Real estate price bubble is the work of media, not foreign money” reads the title of ashort essay by Brendan Brown, an executive director and chief economist of Mitsubishi UFJ Securities International.
He argues that while foreign money is present and plays a role in real-estate markets such as Vancouver, that role measured directly is not large enough to account for the sharp price gains observed in recent years. Instead, Brown suggests, it is mostly Vancouver locals’ exaggerated perceptions of the role of foreign buyers that explains much of what has happened to the market.