Meanwhile... in Australia

Yesterday we talked about articles being published in New Zealand about their belief for trouble ahead for the Canadian Housing Bubble.

Meanwhile, over in OZ, comes another sign the Australian housing bubble is in serious trouble.

Insurance company Genworth Financial pulled the IPO of its Australian unit, sending its shares plunging by over 20% and its default risk soaring.

The IPO, which was supposed to take public up to 40% of the company's Australian mortgage business, and has instead been delayed to 2013 after “elevated” losses this year.

Said Bloomberg:

"the company cited deteriorating market conditions in the Aussie mortgage market. Specifically, the company noted elevated loss experience in Australia as lenders accelerated the processing of later-stage delinquencies from prior years through to foreclosure and claim at a higher rate and severity than expected, particularly in coastal areas of Queensland that experienced natural catastrophes and regional economic slowdowns and among certain groups of small business owners and self-employed borrowers.”

Like Vancouver, Australia has been leaning hard on Asian buyers from China to support it's bubble.  And just like Vancouver, the country is suffering as investment from China evaporates as excess funds for investments disappear as China executes it's own soft/hard landing in real estate.

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