"The US housing market is back on sold ground. Housing prices rose for the third straight month in July in all 20 cities in the Standard and Poor's Case-Shiller index. With homeowners feeling richer, consumer spending is likely to increase, leading to a wider economic boots. Indeed, this week consumer confidence in the US rose to the highest level since February. There is some reassuring news here, too, for Canada, which appears to be in the midst of a housing correction, if not a crash. Where the US economy goes, Canada's always follows, sooner or later."
Especially when you scratch the surface to discover the source for some of that resurgence.
Now Phoenix is on the rise.
"It's kind of alarming when investors are paying, in some cases, more than anything that's been on the Multiple Listings Service and the stuff on the MLS is not distressed."
A study last year found that banks were holding onto around 11,000 foreclosed properties in the Phoenix area. That number doesn't include the roughly half of Phoenix homeowners who are still underwater on their mortgages (a number well above the national average of 30%).
And when it does, all those Albertans and BC'ers will be trapped.
As the melt continues, Canadians with massive HELOC's will be threatened in Phoenix and at home.
Canadian buying in cities like Phoenix (coming largely from BC'ers and Albertans) will evaporate. The massive Phoenix shadow foreclosed home inventory will again flood the market.
Not at all.
Incredibly we have managed to find a way to forge our own, unique, Canadian collapse.
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