Canada's red hot housing market teeters on the brink

You have to live somewhere. And Canadians choose to live in housing that they own rather then rent. Before you start trying to short everything in sight, consider that in Canada it is quite unlike the USA with respect to Mortgage guarantees. While in many US States you can turn over the keys and walk away from mortgage obligations thus losing only the equity in the home, in Canada the banks have covenants on all mortgages that force the borrower to pay or be sued risking all personal assets.

The Canadian housing market may be in for a decline - but only after the Canadian economy tanks - and that depends on the world economies. If the US and Europe continue to grow - Canadian housing is not at risk.

...same with UK mortgages. The banks pursue defaulters except where the LTV is high, and in such cases the banks require a mortgage indemnity insurance to be taken-out at the time the mortgage is issued. In the latter case the insurance companies pursue the defaulters. There are still a few people struggling under debts from the crash of '92.

Be in no doubt, banks are predators.

Or when all the rich chinese start pulling all the money out of the housing market.