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Is it a terrible time to buy here in beautiful West Coast Canada?

 

Things are currently worse in the US than in the local market, which is still testing new highs in average prices for single family homes, condos and townhouses, even though the sales activity has been slumping for more than a year.

 

Patrick Killelea has written an excellent exposition of the housing situation in California, currently titled "US Housing Crash Continues - It's A Terrible Time To Buy".

 

Some of the specifics of the problems in the US are not applicable in Canada, because the prevalence of no doc, interest only loans is less in the Canadian market, but my question is, are we facing similar problems in general - which were just delayed a little bit longer before showing their effects?

 

In other words, will people buying now rue the day they paid $450,000 for a starter home in Fernwood, or $450,000 for a 2 bedroom condo downtown? Read the arguments here, and post your comments.