Is the Real Estate Market a Symptom of an Illiquid Market?

The Canadian housing market is in bad shape. We never had the subprime mortgage crisis that they had in the USA so Canadian property values relative to the US are actually higher and more overvalued than they are in the USA. In Canada, Mortgage is our recourse, which means it's not just the value of your house. The borrower is also on the line. I would not be an owner of Canadian bank stocks here. Yes, the banks are levered 25 times. At least they were in 2008; at least they're risky now. There's a lot of reason to be cautious in the Canadian bank stock market right now.