The British housing bubble has started up again. My own house is now valued at around £550K, which is roughly around U$775K. That's purely because it is in London. It's a ridiculous amount for a three bedroom property. But go about 5 miles inwards towards central London and the same house costs around U$2M !!! The foreign buyers fleeing the European crisis are buying things at some silly prices.

In reality America is better off than Canada.

1. In America you could write off your mortgage payments on your taxes.  In Canada you cannot do that.

2.  In America you can get a long term fixed rate mortgage.  In Canada you have to renew every 10 years.

Canada is basically a massive version of Guyana. A Commodity exporting and financial services country.  When commodities are in the dumps Canada in the dumps also.

I just cannot see where the Canadians are going to find the money from to pay these massive mortgages when rates and other house related costs begin to rise.