The Canadian housing market is cracking

The Canadian home sales fell 3.1% in January, according to the Canadian Real Estate Association. But that masks the dramatic fall near the oil patch in Alberta.

"The decline in national sales largely reflects weakened activity in Calgary and Edmonton. If these two markets are removed from national totals, combined sales activity remained 1.9 per cent above year-ago levels," said Gregory Klump, CREA's Chief Economist.

Like the US bubble bursting, first it's 'regional' and then it's 'contained' but there are some ghastly numbers. The number of homes sold were down 24% in Calgary, 10% in Edmonton, 7% in Regina and 18% in Saskatoon.

"The regional breakdown reveals a rush of homeowners looking to obtain top dollar before their respective regional housing market nosedives on the price," said Mazen Issa, senior Canada macro strategist at TD Securities. "There is a clear sense of panic."