hi, newbie/lurker here. There are a couple of things that have occured to me about the market that i was hoping maybe some of the veterans here might be able to answer for me -
1. when we are in a bear market, as we have been over the last year and a half or so - why do people take their homes off the market? surely it makes finanacial sense to SELL in a bear market? if you sell your house for lets say 100k - 6 months later you can buy it again for 90k. You make 10k for nothing!
2. if thats the case, then why have we been seeing a very small trickle of houses on the market?
3. additionally, why in a bull market, such as pre 2008 - do we see an explosion of houses on the market? sure it makes sense to BUY in a bull market, not to sell? if you sell your house for 100k, six months later its worth 110k - you lose 10k.
4. another thing i've noted is that bears tend to be very negative when they see price ramping in the newspapers -
based on what i've said above, surely Ramping is great for a bear market? it appears the more prices are ramped in the newspapers, the more houses come onto the market.. so in theory the more houses on the market, the more prices drop?
thanks for your help anyone who can help me out with these apparent contradictions i've noticed.