Saturday, October 30, 2010


  • In-migration increases labour supply and lowers wages
  • Out migration reduces housing demand
  • Inflation forces consumers to spend more money on necessities
  • Deflation increases real debt burdens
  • Higher rates are unaffordable
  • Lower rates are unsustainable
  • Higher housing starts will result in oversupply
  • Low housing starts will crush the economy
  • High consumer sentiment implies mass delusion
  • Low consumer sentiment implies a weak economy
  • High inventory results in plenty of choice
  • Low inventory results in higher prices
  • Inflation increases the price of tangible assets
  • Deflation leads to lower rates
  • Higher rates reflect an improved economy
  • Lower rates improve affordability
  • Higher housing starts contributes to economic growth
  • Low housing starts leads to shortages
  • Higher prices reflect strong demand
  • Lower prices result in buying opportunities
Updates: See transcript of Don Campbell's recent interview at VREAA. One way to be disingenuous is to look at the facts and pick one of the arguments above in a knee jerk fashion to support your own perspective. Don Campbell does one better by using the one way price model - Where supportive data justifies increasing prices and negative data will only lead to a "plateau".

Radley pointed out that average weekly earning increased by over 7% in Alberta. That's huge. The monthly number tends to fluctuate so this is probably overstated. Year to date average weekly earnings are up 4%. link

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