This time it IS different

At least in the TC courtesy of Carla Wilson.

Some notable quotes:

Markets in the West, which have risen the furthest above their underlying values, are the most at risk of an increase in defaults as a result of recent mortgage innovations

The delayed arrival of softer housing markets can be partly attributed to recent mortgage innovation that has seeped into the Canadian market during the last two years

so we are looking for even Western Canada to really start to cool off

And obligatory spin from industry:

While there is some "hefty" price appreciation, the market is starting to return to balanced conditions

Prices rose four per cent year-over-year in April, she said.

Canada's housing market is on much firmer footing than the U.S. market," it said, citing more conservative mortgage lending practices, healthy household finances, tight labour markets and a manageable supply of homes on the market

Since when is four per cent growth hefty? I mean if I bought a condo April and wanted to trade up to a house as all my friends have managed to do over the past two or three years, wouldn't I be sad to find out that my "hefty" gains don't even cover my Realtor's commission for selling my place?

I'd like to point out that the US has higher average wages, lower unemployment and just last week the RBC was telling us Canadian's weren't saving enough. How does that equate to "healthy household finances?"

Don't forget owners: you're in it for the long term. Unless you aren't. And then you're a speculator about to get caught, unless you get out now.

I wonder if the next big boom is going to be in counselling services? Can you buy stocks in that? I can see the future headlines: Counselling boom fed by dis-illusioned condo owners "I thought I was only going to have to live in it for a year, maybe two at the most."

Don't let anyone tell you different. This market has changed. And is now starting to show some weakening momentum. Prices will be the last thing to go down. Sales first, prices second.