Canadian housing bubble?

Canadian housing bubble – a reflection of the Southern California housing market?

Could the fast home appreciation occurring in Canada be a mirror reflection of our own Southern California real estate market?

Canada is experiencing a huge real estate boom over the past two decades. When I say boom…I just mean the value of someone’s house goes up a lot. This is great for current homeowners, but this is terrible for new home-buyers who now have to take out a much larger mortgage to get their first house.

Why is this a problem? Why is it bad for someone’s house to appreciate rapidly in value for decades? This is bad because it eventually gets to a point where the price of a house is beyond any accurate or rational reflection of its actual worth. A house with a value of $1,000,000…may in reality only is worth a couple hundred thousand. Read more