Home › Forums › Housing › Mortgage broker predicts further collapse in housing › I can’t say I’m a fan of
I can’t say I’m a fan of using the fact that “bubbles revert to pre-bubble levels” as a justification for any predictions.
That is because “pre-bubble levels” is not really known until the bubble has stopped deflating.
Of course bubbles revert to pre-bubble levels becase those levels are defined by the end of the bubble. They are not, however, known in mid-bubble.
Yes, we revert to the mean, but the mean also reverts to the current trend, by definition, although slowly.
The question still remains – to what level are we reverting and none of these charts really shed any light on that.
I’m with davelj re: being sure about anything.
I think housing is stable this year, with minor pain at the high end, then bad next year.
