My logic is sequential. Feedback loops exist only as bubbles build and pop, but not at turning points.
First we had a positive feedback loop as rising prices led to higher sales, as people were afraid of being priced out or anxious to ride the wave to the top.
After prices got too high for first time buyers, the cycle stalled, inventory built up, and prices came down.
This downward price movement is scaring more people off, and the negative feedback loop has begun.
So we’ve got feedback loops that work to a climax on the upside, and to a complete devastation on the downside.
