US are mortgages defaulting, but what about UK, Spain, ... ?

[lescor]

Quote from Chagi:

Also worth asking another question - what about Canada?

Western Canada is the last hold out for crazy price appreciation. Edmonton house prices have already slipped, but it's a panicked buying mania next door in Saskatchewan. I just sold my 2000 sq foot bungalow for $700k, $40k over asking price. I paid 530 for it 18 months ago. Average year over year house prices here are up 50%. I signed that sales contract so fast, the pen was smoking. It's like Orange County 3 years ago, except I'm the only one who's seen the movie!

Banks are touting their new plans to finance down payments, give you 40 year mortgages, etc. Mortgage lending used to be very conservative here, but like happened in the US, logic goes out the window when the easy money is flowing. I wish I could short houses here, but the economy is on fire- for now. It's kind of mind boggling.

 

[Chagi]

Quote from Siwash:

Western Canada with the exception of manitoba is slated to grow by approx. 2-3% this year, housing pricies are stable,not running up as previous years, The $100 Billion slated to be spent in the Alberta Oilsands this year will continue to trickle through to BC and Sask.

Ontario with it's economy tied to the US mkt via manufacturing is likely heading into recession. I can't comment on the housing mkt there,Quebec is likely to suffer the same fate, but it also seems to be somewhat insulated. The maratimes are the maratimes, great people but no hope other than mining and some small refinery projects.

Just my 2 cents, but I think Western Canada is the only region in NA that will continue to grow over the next 5 yrs.

Hope this helps...

Sorry, bit of a rhetorical question - I personally think that the Alberta housing bubble is set to pop, or at least trend downwards.

 

[Chagi]

Quote from lescor:

Western Canada is the last hold out for crazy price appreciation. Edmonton house prices have already slipped, but it's a panicked buying mania next door in Saskatchewan. I just sold my 2000 sq foot bungalow for $700k, $40k over asking price. I paid 530 for it 18 months ago. Average year over year house prices here are up 50%. I signed that sales contract so fast, the pen was smoking. It's like Orange County 3 years ago, except I'm the only one who's seen the movie!

Banks are touting their new plans to finance down payments, give you 40 year mortgages, etc. Mortgage lending used to be very conservative here, but like happened in the US, logic goes out the window when the easy money is flowing. I wish I could short houses here, but the economy is on fire- for now. It's kind of mind boggling.

Yup, lending in Canada has certainly become quite interesting, even for "prime" loans. My personal favorite was CMHC deciding to begin insuring 100% LTV rentals, particularly at a time when I could not see how one could make that work economically (e.g. purchasing an expensive home 100% LTV and managing to rent it out for more than the mortgage payment).