Vancouver's housing bubble

As housing prices continue to rise here in Vancouver and people continue the trend of being over mortgaged I think we are heading into crisis mode if you are a young new home owner. It was the great Napolean who told us "those who do not learn history are doomed to repeat it". Even though I was not old enough to know what was going on with the markets in the early 80s I see great similarities in the way things are going today.

We seem to be teetering on the edge of a big recession. Consumers have been continually using home equity loans to fun things like vacations, home improvments and just random crap. So what happens if housing prices begin to fall? So does the equity we have in our houses, and if that equity hits the negative why would anyone want to keep paying for a mortgage? Our ATM we like to call a house is going to run dry here soon, and I for one have a backup plan....

Do you?

CB