A couple of times a year the The Bank of Canada reviews how Canadians are spending their money. This was their latest find:
It seems there’s just no shaking Canadians’ faith in real estate. There was more proof of that over the past week.
The latest report from Statistics Canada shows that the rate of household debt to income has topped-out again. It hit nearly 164% for the third quarter of 2013. Most of that is mortgage debt, which rose 1.8% and now stands at $1.13 Trillion.
The Bank of Canada and the Finance Minister continue to call the high level of indebtedness the single biggest domestic threat to the economy, but Canadian consumers don’t seem worried. The latest read on consumer confidence by Bloomberg-Nanos shows an increase to 59.3, up from 58.9 a week earlier. Pollster Nik Nanos says most of that is based on a positive view of real estate.
Consumer confidence is getting some support from a forecast by one of Canada’s biggest credit union cooperatives. Citing an expanding population and a contracting supply of development land, it expects the price of housing in the country’s biggest market, Toronto, to double over the next 25 years.
Information provided by Account Manager for Saskatoon and area, Tracy Woodcock with First National. First National is Canada’s biggest non-bank mortgage lender www.firstnational.ca.