pip
24 Jan 2013
Real Estate / The current property boom in Poland is a bubble [342]
I see that, but I highlighted the most important point. And his point about the market falling at a slow rate and still being a bubble is wrong. A bubble bursting, is just that. The market has high prices followed by the "burst" which leads to lower prices. Dropping 40% since 2008 is not a bubble bursting. It is the prices steadily decreasing and they will soon level off.
The prices were hugely inflated in the first place---based on the amount of residential properties there were, now that the market is saturated it is a different situation.
pip: EXACTLY!!!
But he's suggesting that it was indeed a bubble, Pip:
But he's suggesting that it was indeed a bubble, Pip:
I see that, but I highlighted the most important point. And his point about the market falling at a slow rate and still being a bubble is wrong. A bubble bursting, is just that. The market has high prices followed by the "burst" which leads to lower prices. Dropping 40% since 2008 is not a bubble bursting. It is the prices steadily decreasing and they will soon level off.
The prices were hugely inflated in the first place---based on the amount of residential properties there were, now that the market is saturated it is a different situation.