The meltdown of US housing market mainly due to risky and wreckless mortgage practices is effecting real estate in Canada. The housing prices are falling and housing market is turning to favour buyers now.

According to latest figures from the Canadian Real Estate Association, the housing prices across Canada has dropped by 11 per cent since May 2008.

The Canadian Association of Accredited Mortgage Professionals predicts mortgage approval activity to fall nearly 12 per cent to $193 billion in 2008, compared to $218 billion in 2007. Approvals are forecast to fall another 10 per cent to $174 billion in 2009 and another 1.6 per cent in 2010 to $171 billion. That follows a growth rate of about 11.5 per cent annually for the three years ended August 2008.

The puncturing of housing bubble and start of recession in Canada, there is not going to be much activity in housing market either from buyers are sellers. The housing market may recover by the end of 2009 but home owners may not expect new housing boom in near future, at least not in 2009.