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05-25-2013, 12:28 PM
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Join Date: Jul 2003
Location: Alberta
Country: Canada
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Originally Posted by airic000 View Post
The housing bubble burst in the US in 2008. It has not yet burst in Canada yet. It the next 2 years the bubble will start to deflate a bit. And God forbid they ever increase the interest rates, then you will see lots of foreclosures like in the US.
Prices will have to drop eventually. They just don't want it to drop quickly. Moving towards going back to 25 year mortgages instead of 30 was designed to weed out those that can't afford houses. While not foolproof, Canada's financial system seems to be trying hard when it comes to avoiding the US' problems.

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