Wednesday, July 21, 2010
Canadian Housing To follow the US?
There has been a lot of talk recently about the housing markets on both sides of the border going in the same direction. I do not believe this to be true as there is strong fundemtial differences between the two markets. First there is no recourse against the borroer that goes into default in the US. In canada we are liable for any shortfalls and if affects future home buying for a very long time. Secondly we do not have the current millions of foreclosure homes, bank repossed homes. We are still sitting at the cuurent lowest levels of mortgage deliquencies in Canada. With mortgage rates in Canada remainuing low and a strong banking system, we should not see the giant mortgage meltdown.