1. 1990’s: Deliberate Overvaluing used as a new and effective tactic by certain agents, to grab market share, exploiting seller optimism bias.
2. 2000’s: Other agents, losing market share, were left with no choice but to copy, compounding the problem.
3. 2010’s” “Help to Buy”, QE, low interest rates and other stimulus artificially inflates pricing, creating the illusion of justified higher valuations.
4. 2020’s: Misunderstood RM “Asking Price” index becomes high price validation, used by media and agents to justify ever-greater pace of price increases.
All 4 of these pillars are crumbling. 1 and 2 no longer work to get properties sold, 3 has already disappeared, and the public is waking up to 4.
The thing so many people don’t see is that there’s a whole generation of agents who began working post 2008 who simply don’t understand what’s now happening.
It’s game over.
The 4 Pillars of the Overvaluing House Price Pyramid.
