The only way to short Canadian real estate is to short the currency. I'm Canadian, I thought it through, its the only way to do it profitably.
Fortunately for Canada, we did not "do everything" like the US. Not even close. If we did, the housing market would have blown up by now. The fact of the matter is, foreclosures in Canada are not a significant problem. I realize this was put out by a real estate broker, which has obvious conflicts of interest. But if the housing market really was shitty in Canada, Remax would not destroy their credibility by coming out with statements that suggest the exact opposite.
Are you able to provide some numbers or a reference to back up your claim that valuations are way out of whack?
I thought housing prices would come down more here. There have been homes on the market for a year and they have barely inched down in price. Homes selling for 98-99% of listing is quite common as well. On the other hand, rents haven't moved either. The same houses/apartments are asking the same price as they did 1-2 years ago.
I think the big reason housing prices have held up in Canada despite the fact that the number of homes being sold is decreasing is the relative lack of foreclosures. Many who are selling their homes are doing so for personal reasons rather than financial. If your house is for sale and isn't selling, no need to slash the price in a hurry. As long as employment holds steady, I predict housing prices will remain stable as well.
http://noir.bloomberg.com/apps/news?pid=20601082&sid=agkjpa.5dEUI Canada August New Home Price Index Rose 0.1% "The 0.1 percent advance reversed an identical loss in July..." "Economists predicted the index would decline 0.1 percent..." "Home sales have been aided by low borrowing costs, with Canadaâs five-year fixed mortgage rate at 5.39 percent last week, close to the 5.25 percent set in April 2009 that was the lowest in half a century. "