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King 5 News reports on the latest Case-Shiller data, which shows the first year-over-year home price decline in Seattle in over 17 years.

But Victoria is different, right?

Meanwhile, inventory in Vancouver is shooting through the roof...check comment 39 on how so-called paper equity can lead to a dangerous over-borrowing, which crushes a market once it turns:

You start with nothing and borrow $100 and pay $100 for a house. Your assets and liabilites are both $100. The prices around your house rise to $150 so you think your house is really “worth” $150 so you borrow $50. Now your assets and liabilities are both $150. If the market tanks and the house is now worth $50, your assets are now only $100 but your liabilities are still $150.

That’s what people did in the states - they borrowed too much and now owe more than the property is worth.