Canada's 'housing bubble' deemed close to bursting

Canada's housing market is in a bubble that's set to burst and prices could plunge by as much as 25 per cent, a major independent research firm warns.
“Housing valuations have lost all touch with fundamentals and household debt is at a record high,” economists at the research consultancy Capital Economics say in their most recent Canada Economic Outlook, issued Wednesday.
“Our fear is that, with the housing bubble now close to bursting and commodity prices retreating, Canada will go from leader to laggard.”

lastochka777...  is a real estate broker from Montreal. Just a bit of stat from GMREB ( Greater Montreal Real Estate board) In may of 2010 we had 4 buyers for 1 property, in May of 2011 we have 1 buyer for 9 properties, listings increased 42% compare with the same period of last year and sales dropped 18% in May of 2011 compare with May 2010. The rule of Supply and demand. What happens next?

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