Still plenty of homebuyers still underwater now despite recent spike in prices delaying the inevitable,but property will not cause a subprime crisis here, our regulation is top notch and to be honest I doubt our banks would take the risk especially when they are wheeling their chief economists in front of every camera they can to stress there is no property bubble. Greatest sign I have seen that its certainly being discussed behind closed doors but ...
Banks know the people buying now will service the loans and will suck every last penny out of them because they own them essentially, when investors realise they are now making shareholders wealthier than them things will change. If I was a bank right now I would be rolling out 110% finance to investors, locking them in and hedging risk.
