Simple as ABCD
A reader (S.B.) sent me this chart of Vancouver Single Family detached house prices with his notations from a Elliot Wave perspective.
"Watch for volume climaxes, especially after long moves." Richard Donchian 1934
The Vancouver housing prices are following a price channel, and look to be forming an ABCD pattern.
The thing about ABCD patterns is that prices return to the mid-point. This means that prices should return to 2008 levels.
Furthermore - if prices return to the midpoint consolidation, this would be a 62.8 Fibonacci retracement.
Timing looks to be an approximate cycle of 8 years which means there would soon be a peak, and then another bottom in 2025.
If you view housing as a commodity, in Elliott Wave Theory (psychology) then Wave 5 has large percentage gains as people get spurred by scarcity.