One of the biggest economic questions we have in this country right now is whether there is housing bubble or not.  House prices are on the rise again, as we seem to be “out” of this most recent recession.  Is this a good thing? 

One thing that I have noted is that the home prices in Canada never really went down the same way as in the US.  It seems like everyone thought that we have more stable banks, better mortgage rules, and unemployment hasn’t hit as hard.  Well true with the stable banks, but we have let our mortgage rules become pretty loose, and unemployment is hitting everywhere that doesn’t produce oil.

I think we might be in for a bit of a fall in home prices–perhaps winter of 2010/2011.  There will be a bit of a correction, but not as severe as in places like Arizona, Nevada, and California.  The fed’s most recent changes will not really affect things too much.