Canadian housing market crash begins

Probably doesn't matter to most of you but our market is finally cracking.
At one point last year my parent's 90yr old house in an average part of town Vancouver on a 32x109 lot was worth $650,000.
Remember, our Canadian dollar is higher than the greenback right now.

http://www.canadianbusiness.com/a...ash-begins

Probably doesn't matter to most of you but our market is finally cracking.
At one point last year my parent's 90yr old house in an average part of town Vancouver on a 32x109 lot was worth $650,000.
Remember, our Canadian dollar is higher than the greenback right now.

http://www.canadianbusiness.com/a...ash-begins

link is dead.

Wow, that's crazy. The real estate pumpers must have done something.
It's available on Google cache.

http://webcache.googleusercontent...en&ct=clnk

Take Canada. Its housing problems look practically nonexistent compared with ours. One reason for this is that nearly every Canadian mortgage is full-recourse. As one recent article put it:

If a bank in Canada forecloses on a home with negative equity, it can file a deficiency judgment against the borrower, which allows it to attach the borrower's other assets and even take legal action to garnish the borrower's future wages ... The full recourse feature of Canadian mortgages results in more responsible borrowing, fewer delinquencies, and significantly fewer foreclosures than in the United States.
It's hard to know exactly how big a difference this makes. But take a look at this chart comparing Canadian mortgage delinquencies with those in the States. Enough said.

Ditto for Australia. As one Australian journalist wrote in The Wall Street Journal in 2008:

When Australians borrow money to buy a house, they know that if they default and the mortgaged property doesn't cover the debt, they will be responsible for the shortfall. And the lender will chase them for it. It's a neat way of reminding Australians to borrow responsibly.
Not surprisingly, Australia currently has one of the healthiest real estate markets in the world, with 11% growth last year after a barely noticeable 4% drop in 2008. Come hell or high water, Aussies find a way to pay their debts.

Wont be as bad. Canadians were smarter about this than we were

http://www.fool.com/investing/gen...erica.aspx

This also is the case with most of the US. Some states prevent going after the deficiency balance but most do not.

Correct me if I am wrong, it's different than US. Because that's why there's Freddie & Fannie to guarantee those sub prime mortgages, hence the crash.

Freddie and Fannie protect the banks to some extent, they do not prevent the borrower from not being liable for the deficiency balance.

People actually live in Canada?