Canada REIC Radio

A Statistics Canada report released in late December revealed that real estate accounted for as much as $8.752 trillion of the nation’s total wealth during Q3 2018.

This represented approximately 76% of Canada’s wealth during that quarter, estimated to be at $11.415 trillion.

Such a top-heavy set-up might prove problematic in the event of a “sharp, sustained correction in house prices given the wealth effect on spending,” BMO senior economist Sal Guatieri told Global News.

Read more:Investors have little to fear of a housing meltdown[1]

Guatieri admitted, however, that this trend appeared inevitable in light of the “sharp rise in home values” observed in red-hot markets like Toronto and Vancouver over the past decade.

From Q1 2009 up to Q2 2017, the total value of Canadian real estate grew from around $2 trillion to approximately $4.2 trillion.This subsequently moderated, relatively speaking, to $4.1 trillion in Q3 2017.

Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.Click here to get help choosing the best mortgage rate[2]

A Statistics Canada report released in late December revealed that real estate accounted for as much as $8.752 trillion of the nation’s total wealth during Q3 2018.

This represented approximately 76% of Canada’s wealth during that quarter, estimated to be at $11.415 trillion.

Such a top-heavy set-up might prove problematic in the event of a “sharp, sustained correction in house prices given the wealth effect on spending,” BMO senior economist Sal Guatieri told Global News.

Read more:Investors have little to fear of a housing meltdown[1]

Guatieri admitted, however, that this trend appeared inevitable in light of the “sharp rise in home values” observed in red-hot markets like Toronto and Vancouver over the past decade.

From Q1 2009 up to Q2 2017, the total value of Canadian real estate grew from around $2 trillion to approximately $4.2 trillion.This subsequently moderated, relatively speaking, to $4.1 trillion in Q3 2017.

Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.Click here to get help choosing the best mortgage rate[2]

References

  1. ^ Investors have little to fear of a housing meltdown (www.canadianrealestatemagazine.ca)
  2. ^ Click here to get help choosing the best mortgage rate (www.canadianrealestatemagazine.ca)

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