Canadians! Housing in Q1 went parabolic.. careful

This might just save your hard earned money if your are debating whether you should chase this euphoric housing market in Canada (or perhaps US).

Look at this classic bubble burst. Notice anything?

Right before the peak, you have this parabolic move. Everyone is trying to chase because they fear if they don't they will be left behind. And when reality sets in, people get hurt.

Here's a problem with most people participated in this housing mania:

They will blame the government, the banks, the mortgage lenders when the bubble pops.

But when people are flipping houses and making money, it's because they are smart? Give me a break.. If you are chasing this market right now and get hurt later, you do it to yourself.

Warning signs as of this moment:

1. Home Capital Group, the alternative lender in a Canada who issued tons of questionable mortgages, despite the 2 billion credit line, will likely run out of money soon as there's no recovery in confidence in this firm whatsoever and deposits have been leaking nonstop.

2. US mortgage applications declined over 4% year over year. This could be signal that the North
   American real estate market which in general overheated severely has exhausted its buyers.

3. Buyers have been seen paying 30% to 50% over ask price in Canada in Q1 2017. This is signal of irrational behaviour from less sophisticated buyers. The price level is unsustainable and could drop shapely which could cascade further selling in the market.

Wish everyone happiness and prosperity!