UOB says that its 50-year home loan product was developed to help younger executives afford their first home

UOB head of secured loans (personal financial services) Chia Siew Cheng was reported by TODAY as saying that the bank’s latest home loan product was developed “to help younger executives afford their first home”. According to Ms. Chia, the bank has observed many young couples in their late 20s to early 30s seriously looking to buy a HDB or a private residential property for owner-occupation. Ms. Chia also added that the bank has been transparent with applicants that the longer repayment period and loan tenor also mean that more interest will be payable over the period of the loan.

UOB’s statement comes in response to Minister for National Development Khaw Boon Wan criticism of the offer of 50-year housing loans as a “gimmick”. Minister Khaw was quoted yesterday at the sidelines of a National Day observance ceremony in Woodlands.

Last month, The Straits Times reported that the bank started offering home loans of up to 50 years, which is possibly the longest term loan currently available in the local market. Previously, other banks had offered home loans that span up to 40 years.

United Overseas Bank (UOB) has also clarified that loan applications are processed and approved at its head office and not at showflats, and that the new service was only meant to assess home buyers’ eligibility for home loans at selected showflats.

The bank issued this statement last Friday to clarify its loan application process after the launch of its new service last Wednesday where its mortgage brokers are issued with iPads, which are connected to its credit evaluation system. The bank had earlier been reported as saying that this would make the home loan approval process easier and potential home buyers at showflats would be able to know on the spot if their home loan application have been approved.

Guide to Insuring your Home

When it comes to ensuring that the value of your home and its contents are rightly accounted for when unfortunate circumstances hit, no effort should be spared in unearthing the best available insurance plans to suit your needs.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Assessing your needs

The first step to take in insuring your home is figuring out what you really need, as this will give you an idea of how much coverage to get. Reflect on how much you are financially invested in your piece of property, and how much more you are willing to fork out to protect its value.

  • Do you have many valuable possessions?

Take into account your state-of-the-art computer, expensive jewellery, artwork, or designer furniture. You may also wish to insure items of sentimental value, but don’t get carried away. What is important to you may not be of monetary value.

DirectAsia.com covers loss or damage to your home contents, which they define as “anything inside your house and garden that you would take with you when you move”.

  • Is your location prone to damages?

Singapore’s location on the globe may keep us safe from hurricanes or volcanic activity, but some homes remain at risk to the occasional flash-floods and earthquake tremors. If your home is perched on ground level or located on the lower floors of the building, at a low-lying area like Bukit Timah Road or Stevens Road, you might want to choose a policy that covers your belongings and renovations in the event of a flood.

DBS’s HomeShield plan insures against floods with damages up to an excess of $100. DirectAsia.com insures against floods and earthquakes, but covers only homes that have not previously suffered damage from floods and other listed disasters.

  • Did you splurge on your home?

If you purchased your home for an extravagant price and lavished it with renovation projects, you might want to spend a bit more to insure your investments in the home. However, stick within your budget and go for the best option you can afford.

Aviva’s Home plan covers fixtures like built-in wardrobes for a maximum sum insured of $100,000.

Basic coverage

Some houses come with their own insurance policies.

When you buy a new Housing Development Board (HDB) flat, you may be required to apply for two kinds of insurance: the HDB Fire Insurance Policy, and the Home Protection Scheme. The former is meant for those taking a HDB loan. The latter is for those who have arranged for monthly housing repayments via their Central Provident Fund accounts.

The Home Protection Scheme, in particular, is a mortgage-reducing insurance scheme. It ensures that your home will not be lost should you not be able to complete your housing loan payments.

Similarly, private homeowners taking out a bank mortgage have to first take out a fire insurance policy. Some banks, like Standard Chartered, offer free home-insurance for the first year when you take up a housing loan with them.

However, these policies usually have very basic coverage. In a typical fire insurance policy, only the walls and ceilings of your home are covered in the event of a fire. This means you cannot claim for the loss of your flat-screen television. Neither can you claim for items stolen or damaged by other means.

Choosing the right policy

If your basic home policy is insufficient, you should search for better solutions in the market.

Take note of these key points when deciding on a suitable plan:

  • Items covered

Check if the policy covers renovation costs and the value of contents of your house. Some policies even cover personal accidents and liability, loss or damage to valuables outside your home.

  • Definition of terms

Insurers do not all have the same definition of risks. Pay attention to these definitions as they can make a difference to what belongings you can seek damage against, and ultimately the amount you can claim.

  • Excess clause

This is the minimum amount you have to bear for all losses except those resulting from fires. Find out exactly how much you have to foot per item. For example, DBS’s HomeShield plan has an excess clause of $100 for water damages.


  1. Most insurers offer more than one housing plan. Some, like Aviva, offer you the flexibility to add only the benefits you need, so you won’t have to pay more for a comprehensive plan you won’t fully utilise.
  2. Over-insure rather than under-insure, as it is common to accumulate new items in your home over time. The less you insure, the less you can claim. However unlike many insurers, Great Eastern’s HomeSupreme plan has a ‘First Loss Policy’ that does not penalise you for under-insuring.
  3. If you are a pet owner, look out for a plan that includes coverage for your beloved animal. Great Eastern provides coverage for the accidental death of pedigree dogs, but there are plans that cover cats and dogs for a handful of unfortunate situations.


How to Know You Are Ready to Buy A HDB BTO Flat

Are you and your partner planning to apply for a HDB BTO (Build-To-Order) flat this year? If so, you are not alone – for many Singaporeans, a BTO flat is their number one choice of first home, mostly due to its lower price tag as compared to homes on the open market, as well as the various grants and subsidized pricing offered. However, as a first-time homebuyer, you may find that applying for and selecting a new HDB flat can be an intimidating experience. Below are some helpful tips to help you successfully select the right BTO HDB flat and come out a winner.

HDB Flat Launch. Image courtesy of HDB.

Understand latest HDB Policies & Developments

For those who have not been actively following local property news, it is very important that you start now.  Recent policy changes such as the extension of the MOP (minimum occupancy period) from 3 to 5 years may have significant implications on your decision to apply for a BTO flat. Also remember that the loan term for HDB flats can be significantly shorter than that for private properties: private banks can offer loan terms of up to 40 years, while the HDB concessionary loan is only available for 65 years minus the buyer’s age or 30 years, whichever is shorter. Also, although you may not be thinking of buying a 2nd residential property now, do bear in mind that HDB flats cannot be used for getting a 2nd mortgage to leverage or “cash-out” for financing another property purchase – unlike private homes.

Timing Your Application for A BTO Flat

If after considering all the factors involved with buying a BTO flat, and you still decide to go ahead and apply, bear in mind one of the most critical factors: your timing. To give some background, prior to around May 2011, HDB would usually release smaller batches of BTO units on a monthly basis, a process which would result in a frantic rush where everyone would apply for the next consecutive month’s BTO release, without even knowing if they had been successful in the previous exercise. The good news HDB has since revised the system to put up flats in bigger, less frequent releases, meaning that the applicant to flat ratio has been much improved. This is good to know of course, but how can you use this to your advantage?

Maximizing Your Chances of Getting a Good ‘Q’ Number

While luck certainly matters, there are steps you can take to maximize your odds of getting the best queue number. Although the tangible cost of submitting a BTO application is only S$10, and HDB does not limit the number of BTO exercises you can participate in, the larger, less implicit cost lies in how multiple applications will be used “against” you. In a move to discourage buyers from being “picky”, HDB has programmed its balloting system to place applicants who have rejected an invitation to select a flat more than twice at the back of the queue. Because of this, it may not be advisable to apply for a neighborhood which has been oversubscribed over 10 times for a popular release, as your chances of being able to get a good queue number are very small.  You might be better off applying for another neighborhood to increase your odds of getting a better queue number instead.  Bear in mind that HDB’s offer to you to select a 2nd floor, rubbish-dump facing unit also counts as an invitation, making it even more important you use your application chances wisely.

Use the Tools at Your Disposal

HDB InfoWeb. Image courtesy of HDB.

With over 25,000 BTO flats slated to be released in 2012, make sure you don’t miss out on any of them by signing up for HDB alerts on the HDB website. HDB will send you an SMS or email prior to the release of a new BTO launch, when full details of the units, including indicative pricing, are available.  Keeping abreast of latest releases is even more critical now that the time frame for submitting your application online has been reduced to one week. Many have missed the deadline for a BTO launch by not keeping track of when applications close – make sure you are not one of them.

Your Patience Will Be Rewarded

In your desire to quickly ‘secure’ a new home for you and your partner, the urge to quickly apply for every BTO exercise there is can be overwhelming. However, do bear in mind your goal is to maximize your chances of getting a good flat, not just any flat – which means it pays to wait for the right launch at the right time. In particular, those eyeing popular areas such as Clementi and Bedok might want to wait for new flats in these areas to be released rather than simply applying for every launch and being invited to select a flat for an area you don’t actually want.

The SBF (Sale of Balance Flats) Exercise (Or HDB’s Special “Bonus” Exercise)

Kim Tian Green, Sep 2011 SBF Exercise. Image courtesy of HDB.

For those with a little more patience (and time on their side), it may be well worth your while to wait for the announcement of the SBF exercise. This may be conducted on an annual basis, but really depends on the number of ‘surplus’ flats HDB has built up in its reserve. The key benefit of the SBF exercise is the absence of the 2-3 year construction period, as SBF flats are typically already completed or near completion. The September 2011 SBF exercise was a good example of how good things come to those to wait: units in highly sought-after areas such as Queenstown and Tiong Bahru were released to 1st-timers, who were able to collect their keys to these completed units within 6 months after applying. With the hot competition for SBF completed flats, it becomes even more apparent why it is important that you ‘conserve’ your chances so you can use them at a time when it really matters.

Keeping An Eye on the Competition

Once you have decided you are interested in a particular launch, watch the live updates on the HDB InfoWEB website like a hawk once HDB starts accepting applications. Do not submit your own application yet. Why? Very simple: By identifying the neighborhoods which have the least number of applicants, you maximize your chances of getting a good queue number. Checking the number of applications versus the number of units available on the day before applications close will give you a good idea of what your likelihood of drawing a good queue number is, and help you decide if you should use one of your precious first-timer ‘chances’ during this particular launch.

Scoping Out the Site

Buying a property off-plan, while having the benefit of ensuring you get a brand-new unit, does mean that the buyer has to do additional due diligence because they will not have the benefit of inspecting the actual unit. For example, you will have to rely on materials such as floor plans and the SLA (Singapore Land Authority) announced plans for the next several years to figure out if a 40-storey high-rise will be built on the plot directly in front of a BTO site, or if an MRT or Chinese temple will be constructed near-by. Tip: going over to the nearly existing blocks in the neighborhood and taking the lift up to the highest floors will give you an idea of the view the new flats will have when they are finally constructed.

Choosing Your Unit: Balance Out Your Must-Haves vs. Nice-to- Have

So you have submitted your BTO application – and lucky you – have received a good queue number. What to do next? Before breaking out the champagne to celebrate, bear in mind that your work has just started at this point. Preparing for your selection date involves doing your homework by understanding the features on the different units offered, including potential negatives such as the amount of afternoon sun the bedrooms will face as well as the extent of street noise that will travel up. While going over the pricing list, if the main reason for your preference for a unit on a high floor is for the view, bear in mind that you may be able to choose a unit on the 20th floor vs. one on the 40th floor and yet still be able to enjoy the view you desire. As HDB charges a substantial incremental for higher floors, the money you save may be better used toward other expenses such as paying for your granite kitchen countertops or customized floor-to-ceiling shoe cabinets –  or any ‘what-ifs’ that may come up during the 30 years you will be financing your flat for.

What To Do on Selection Day

As there may be around 8-10 couples selecting their flat that day, be mentally prepared for the possibility that your choice flat may already be taken up by the time you get to the front of the queue. To mitigate the anxiousness you will feel when sitting in front of HDB sales officers and not knowing which remaining unit to select, make sure you show up early for your selection appointment slot, and more importantly, fall in love with 15 units instead of just one or two beforehand. Also bring detailed reference information and photos of each site you’re interested in to avoid panic because the units you had your eye on are all already taken up.

Do you have other tips for first-time BTO flat buyers? We encourage and welcome any tips you may have to add in the “comments” section below.

How Much House Can You Really Afford? Tips for Budgeting for your first Home

With housing prices having risen by double-digit figures annually for the past several years, an increasing number of young Singaporean couples are finding that servicing a monthly housing mortgage has become increasingly challenging.

Compared to a generation ago, where Singaporeans could select an HDB flat for the bargain price of $70,000, those in their mid twenties to thirties buying a home for the first time today have to grapple with rapidly rising costs and ominous signs of a looming global recession on the horizon.

If you find yourself in such a situation, what can you do to best ensure you choose a flat within your means, and that your CPF savings are adequate to service the mortgage loan? Read on to find out the key financial considerations for making the home of your dreams become a reality.

1. Can You Afford the Downpayment?

Although property buyers used to be able to borrow as much as 100% LTV (loan to value) during the property boom, those days of liberal lending are long over, and home buyers today have to put up more cash and CPF before they can buy a home.

While first-time HDB buyers can still put down just 10% of the value of their flat and get a loan from HDB for the remaining 90%, those who choose private property or do not qualify for an HDB loan can only borrow a maximum of 80%. Furthermore, buyers of resale HDB flats have to fork out an additional COV (cash over value), which can amount to as much as $50,000, and has to be paid out to the seller in cash.


2. The LTV (Loan to Value) Ratio

After you have determined that you are able to come up with the downpayment, private banks will loan up to 80% LTV, while those who qualify for a HDB concessionary loan may borrow up to 90%. Although current bank interest rates may be lower than the 2.6% extended by HDB, experts generally advise first-time home buyers to go with the HDB loan option instead, as HDB rates are pegged to the CPF rates plus 0.01%, hence offering greater long-term stability.

For those deciding between a private property or HDB purchase, it would be helpful to bear in mind that HDB will only extend loans for public housing purchases, but in recent times private banks have been seen to be more lenient in extending mortgage loans for private property vs. HDB – particularly given the stringent MAS regulations surrounding HDB loans.

3. How Much Would You Need to Make to Afford a $350,000 HDB Flat?

With a standard 4-room resale HDB flat costing around $350,000 these days, how much would you have to make to be able to be able to comfortably afford your monthly mortgage payments?

At an interest rate of 2.6% (currently the HDB concessionary loan rate) and a mortgage term of 30 years, a family would have to earn a combined gross monthly salary of at least $3,500 in order to be able to be able to afford a monthly loan payment of $1,400.

However, this minimum income of $3,500 is calculated on a 40% loan quantum, and each family should adjust their calculations should they have other major financial commitments to consider (eg: auto loan, baby expenses, parent allowances, etc).

4. A Steady Income Flow for the Next 30 Years?

Along with the other good rule of thumb of making sure that you and your partner’s combined CPF contributions can fully cover your monthly mortgage payments, one key factor to bear in mind is that both employer and employee CPF contributions are reduced after age 55, with total CPF contributions falling from 36% to 30% as a percentage of total income.

As it is likely you will still be servicing your 30-year mortgage loan at the age of 55, it is good to bear in mind that retrenchments affect workers aged 40 years and older the most. To avoid the worst-case scenario of being evicted from your home (touch wood) – the oft-repeated mantra of keeping to your budget, and buying only what you can afford is sound advice to follow.

Given that buying your first home is likely the biggest financial commitment of your life, one last important tip is to make sure you take advantage of all the help available out there. For example, HDB offers an Additional CPF Housing Grant (of as much as $35,000) for those who qualify. Generous relatives can also be excellent sources of help, and there are many cases of parents who will “help” their children get started out by contributing a sizable portion of the downpayment for their new flat. As always, in the case of buying a new home, when you need all the assistance you can get – it never hurts to ask!

How To Choose Your Home Loan in Singapore

HDB flats in Singapore

A home loan can help you buy a property that you otherwise cannot afford to purchase. With truckloads of home loan schemes in the market, it can be difficult to choose the right one. Here’s a quick guide on how to go about selecting your home loan.

Choosing the best home loan can be a daunting task. Interest rates are not the only thing to look out for when choosing a home loan.

A simple tool you could use to help you is the SmartLoans Home Loan Calculator (for new purchases) or the Mortgage Refinancing Calculator (for refinancing) on SmartLoans.sg. The Calculator is a step by step wizard that guides you through the points to consider and gives you a snapshot comparison between all the latest home loan rates available in Singapore based on your criteria.

1. Fixed or Floating Rate?

First you need to decide if you want a fixed interest rate home loan or floating interest rate home loan.

Fixed rate home loan consists of fixed interest rates that do not fluctuate during the period that you are locked in at. The rates remain the same despite the changes in economy and market conditions. Fixed rate home loans usually have a higher but stable interest rate than floating rate home loans. Eg. 1% fixed for 3 years.

Floating rate home loans (aka variable rate home loans) typically consist of very low interest rates and in Singapore, they are usually pegged to SIBOR (Singapore Inter Bank Offset Rate) or SOR (Swap Offer Rate). SIBOR and SOR are transparent indexes, that the banks have no control over adjusting (You can think of this as the “cost price” for the bank). These rates fluctuate according to the market conditions, so you will need to keep tabs on them occasionally.

Banks will add a spread % (which can be thought of as their “profit margin”). Eg. Sibor + 1% (where 1% is the spread). Banks are currently offering very low spreads for floating rate packages to entice home buyers.


2. How long should you stretch your loan tenure for?

The longer you stretch out your loan, the more you end up paying in interest to the bank (because interest is charged annually). However, stretching out your loan over a longer period makes your monthly payments more affordable.

Think about what you are comfortable with affording monthly, and work from there. You don’t want to be paying so much for your mortgage that you have no money for anything else! The SmartLoans Home Loan Calculator allows you to calculate your monthly payments and then you can adjust your loan tenure accordingly to see what suits you best. Generally, banks will be able to give you a loan until you’re 70-75.

3. Other points to be aware of
Beware some gimmicks that banks use. Low rates may have a catch

High rates from year 4 onwards
Banks might give you low rates for the first 3 years to reel you in, but they might increase the rates from the 4th year onwards. Low initial rates work well for investors who are planning to sell soon after the 3 years. However, if this is for your own stay, you should consider the impact over the entire loan tenure.

Floating rates that are not pegged to SIBOR or SOR
Banks may hike up the rates at their discretion if your package is not pegged to SIBOR or SOR. I would strongly advise against taking loans which are pegged to the banks internal board rates.

4. A Final Note: Do your homework
Do your research before committing to any home loan. SmartLoans makes it easy for you with all the latest Singapore home loan rates published online.

If your loan amount is more than $500k, you might also qualify for lower deviated rates (which are not published). To get more information contact SmartLoans. In the meantime, try out the SmartLoans.sg Home Loan Calculator now to check out the most up to date information on singapore housing loans available.


This article first appeared on MoneySmart.sg
Direct Article Link: How to Choose Your Home Loan in Singapore

Image Credits:
Lucius Kwok
Abdul / Yunir

Predictions for the Singapore Property

There seems to be a lot of volatility in the global equity market as well as Singapore’s. Indeed, in the two weeks following National Day, billions were wiped out.

Singapore property prices will continue to rise

Singapore property prices will continue to rise (image courtesy of thinkstock)

A piece of interesting news is that the Swap Offer Rate (SOR) has gone into negative territory. US Federal Reserve Chairman Ben Bernanke has made an unprecedented move by guaranteeing that the SOR, which is highly correlated to the US interest rate and exchange rate, will not go up for the next two years. This is truly risk free investing if you know how to take advantage of it. Well, one way I can think of is to refinance your mortgage to a floating SOR rate with a two-year lock on it, reviewing the global situation to repackage it two years later if necessary.

Another piece of news that has grabbed the headlines is the downgrading of US debt by Standard & Poor’s. This has resulted in Singapore, which has one of the few remaining AAA-rated government debts, being thrown into the limelight as a safe haven during these turbulent times. However I think that there is a treat of the Singapore dollar appreciating too much, which will affect its exports. Currently it is trading close to a never seen before rate of 1.2 against the USD. The upside is that it is combating inflation since Singapore is a major importer, but the downside is deposit rates will remain low and investing overseas will be challenging, which will result in savvy investors turning to local property, perhaps even commercial properties, instead of the volatile equity market.

Taking these two factors into consideration, coupled with the stamp duty penalty of 16% for the first year, 12% for the second year and 8% for the third year, recent buyers have the advantage of a booming property market. In the interest of maximising their profits without any opportunity loss, they are unlikely to sell in the next two to three years to avoid being hit with stamp duty penalty and low interest rates. Also, the next two years will see less uncertainty in the market; with the Singapore dollar appreciating and overseas investment opportunities becoming scarce, property will remain attractive as it is less volatile than equities, especially since demand still exceeds supply, given that foreign investors are eying this market as well.

Therefore, my analysis is that Singapore property prices will continue to increase over the next two years at least. However there is the potential that this will come crashing down if interest rates start increasing, as today’s buyers will start off-loading as a result of lower stamp duty penalty and an oversupply of homes.


Don’t be penny wise, pound foolish

Let me share a story about two couples in their late 50s whom I recently met.

Couple A are typical savers. They have worked hard their whole lives and have paid off the mortgage on the HDB flat they bought 20 years ago. Now 55, they have a decent amount of CPF savings as well as cash savings from their fixed deposit accounts, which they set up because they did not want to take any risks with their money.

Scrooging on small expenses is not the answer. (iProperty)

Scrooging on small expenses is not the answer.

However Couple A are afraid that given the current low interest rates, their savings might not be enough to pay for their children’s tertiary education and any costs incurred after. Thus even though they have retired, they have had to take up odd jobs to maintain an income.

Like Couple A, Couple B also have children and they have also finished paying the mortgage on their HDB flat. However even though they earned less than Couple A when they were still working, savvy property investments have helped them avoid the situation in which the latter now find themselves. Indeed, when it was announced many years ago that CPF savings could be used to purchase property, they immediately jumped at the opportunity and used their CPF to buy two private properties.

Even though they do not have much savings left in their CPF accounts, they have two fully paid assets that have more than doubled in value. In addition, a steady stream of rent coming from the two properties means they do not have to worry about income.

These couples exemplify the importance of looking at the big picture. While scrimping and saving on daily expenses may pay off in the short term, neglecting to consider the future can have dire consequences.

By looking ahead, Couple B were able to be financially free even though what they did was neither complicated nor risky.

This does not necessarily mean that investing in property is the best way of securing one’s financial freedom. Rather, what these examples serve to illustrate is the importance of having long-term financial investments instead of just focusing on short-term small expense savings.

Agree to Disagree

In ‘The Little Boy And The Dollar Notes’, the allegorical tale of a young boy being presented with the option of taking either a $100 bill or a $10,000, the boy chooses dollar bill. This goes in the face from the advice he receives from people around him to take the larger denomination, but the boy is suspicious of whether the stranger who presented him with this unlikely choice would in fact hand over such a large amount as a $10,000 bill.

This reminded me of situations where everyone has a view and thinks they are correct or have the best answer. Ultimately, only one side may be correct, but does that make the other side incorrect?

Yes and no.
It’s possible to say “yes the other side is incorrect” because subsequent results show them to be so. However, in the case of the allegory it could be argued that based on the information the boy and the crowd had available to them at the time, they both made valid points. ‘The Little Boy And The Dollar Notes’ exemplifies how when presented with a set of limited facts, many different points of view can be expressed.

Sometimes it is important to step back and consider other people’s point of view. Walk in their shoes and take time to understand their frame of reference rather than facing off in an argument. You can still disagree with them, but there is no need to put down their point of view.

Just agree to disagree.
I believe that this point of view – agreeing to disagree – happens in a transparent and open environment like the stock market.

In a property transaction, for example, there is a buyer and there is a seller. The buyer believes that the current price is cheap, while the seller thinks that the price is expensive. They agree to disagree and the transaction is settled.

The buyer’s point of view could be based on oversold markets, good valuations, recovery, TA ‘buy’ signals, analyst recommendations, and so on. Similarly, the seller also has their set of reasons, whether they be overheated markets, overbought situations, recessionary forces, bearish indicators, TA ‘sell’ signals, or analysts with sell calls.

Reading a newspaper the other day I came across two articles. One was titled ‘Markets Sell Off Due to Greek Debt Crisis’, and then, on the same page, there was another article – this one entitled ‘Oil Prices Ease Due to Impending Greek Debt Resolution’. This frank contrast of views on the very same page epitomised to me how two different results or opinions could be gleaned from the same information. I concluded that price is defined, as the amount the next greater fool is willing to pay.

In a previous post of mine I talked about how supply and demand affects on the HDB market and how, although prices may seem high, sellers will price their product at a rate they believe someone is willing to pay. This is especially true in Singapore where, everyone has their point of view on property prices.

The sellers feel the market will enter a price correction in the future. The buyers feel that the sky’s the limit – and that prices will continue to climb. If the correction never comes, the sellers will be cursing themselves. If a reversal occurs, the buyers have overpaid. Only time will tell, so right now, I agree to disagree.