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Someone who is not selling is not a seller, is he? And, predicting the next correction, someone who cannot afford to buy even at the lowest price, also, is not

Someone who is not selling is not a seller, is he? And, predicting the next correction, someone who cannot afford to buy even at the lowest price, also, is not a buyer.

lotsofpulp 3y ago
A properly functioning market requires lots of sellers and buyers. Hence people complaining about extended time of empty storefronts and empty housing, it shows the lack of a properly functioning market.
- pandaman 3y ago
  This depends on your definition of "properly", a market doesn't require either. E.g. a market for fine art usually has no sellers most of the time, it might not be properly functioning but it's a market and still follows the same principle: people will sell for as much as they can possibly get and buy for as little as possible.
  - lotsofpulp 3y ago
    Let’s change to efficient and inefficient instead of properly and improperly. No one is hurt by a less efficient art market, so there is no outcry about it. An inefficient property/land/house/space market leads to all sorts of problems in society.
    - pandaman 3y ago
      The market efficiency is a theory that asserts that the seller sells at the highest price available and the buyer buys at the lowest, it doesn't not put any requirements on having lots of either [1] 1.https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp https://www.investopedia.com/terms/e/efficientmarkethypothes...
      - lotsofpulp 3y ago
        EMH assumes good price discovery (since it is always referring to deep markets like publicly listed stocks), which depends on having many buyers and sellers: https://en.wikipedia.org/wiki/Price_discovery https://en.wikipedia.org/wiki/Price_discovery
        pandaman 3y ago
        Not really: if Mona Lisa went on sale, I am sure all the prospective buyers learned about such an event despite having just one possible seller. The information propagation on the American RE market is also quite robust, most of properties go through the MLS and even if not, buyers scout for possible deals very vigilantly.

Someone who is not selling is not a seller, is he? And, predicting the next correction, someone who cannot afford to buy even at the lowest price, also, is not a buyer.

lotsofpulp 3y ago

A properly functioning market requires lots of sellers and buyers. Hence people complaining about extended time of empty storefronts and empty housing, it shows the lack of a properly functioning market.

pandaman 3y ago
This depends on your definition of "properly", a market doesn't require either. E.g. a market for fine art usually has no sellers most of the time, it might not be properly functioning but it's a market and still follows the same principle: people will sell for as much as they can possibly get and buy for as little as possible.
- lotsofpulp 3y ago
  Let’s change to efficient and inefficient instead of properly and improperly. No one is hurt by a less efficient art market, so there is no outcry about it. An inefficient property/land/house/space market leads to all sorts of problems in society.
  - pandaman 3y ago
    The market efficiency is a theory that asserts that the seller sells at the highest price available and the buyer buys at the lowest, it doesn't not put any requirements on having lots of either [1] 1.https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp https://www.investopedia.com/terms/e/efficientmarkethypothes...
    - lotsofpulp 3y ago
      EMH assumes good price discovery (since it is always referring to deep markets like publicly listed stocks), which depends on having many buyers and sellers: https://en.wikipedia.org/wiki/Price_discovery https://en.wikipedia.org/wiki/Price_discovery
      - pandaman 3y ago
        Not really: if Mona Lisa went on sale, I am sure all the prospective buyers learned about such an event despite having just one possible seller. The information propagation on the American RE market is also quite robust, most of properties go through the MLS and even if not, buyers scout for possible deals very vigilantly.