I spoke with the CEO of the Greater Moncton Real Estate Board today and she told me that the Board has already met the volume sold for November 2008. That is good news as it shows we are continuing to stay strong going into the winter season.
I heard Spencer Rascoff interviewed on Fox TV yesterday. He is COO of Zillow,, a big listing web site in the US. He is predicting another dip in the market in the US. According to him there are still 1.9 million mortgages in the US that are 120 days or more in arrears. These haven't even entered the foreclosure stream yet because banks are too busy with the ones they have now. Nearly 20% of the mortgages in the US are "upside down" or people owe more then their house is worth. In Los Vegas, the number is 80%! This problem will become apparent when people go to refinance their mortgages. Even the people who are current on their payments will have to come up with a lot of cash to take out a new mortgage. So, the pain of sub-prime mortgages has not completely passed south of the border.
I never thought I would say it, but it appears those Canadian banks we all love to complain about have helped us dodge a major financial bullet here in the Maritimes.