Massive Bubble? Household "Wealth" Reaches $10 Trillion In Canada!

[Economy 52,882]

http://www.rbc.com/economics/daily-economic-update/sep-12.html

Canada's total net household wealth is almost $10 Trillion a new record high. The Per Capita net worth is close $300,000

Despite a wide variety of assests the main driver of growth is a mever ending boom in the housing housing which began in 1999 despite economists saying the market is over-heated for nearly 5 years

With the annual GDP only being $1.8 Trillion for the 35 million population Nation this much value has little substance to back it up and many are saying the Country is in an asset bubble

Real Estate prices unexpectedly climbed another 5% last year despite attempts by the Government to cool the market.

[teo 609]

 

Despite a wide variety of asses

 

on topic: Good for Canadians I guess.

[Economy 52,882]

on topic: Good for Canadians I guess.

lol thanks for poiting that out lol i fixed it

And its only good for Canadians who bought a house years ago. For someone like me hoping to buy my first house when i get my next raise, i hope the bubble deflates.

Dont want the bubble to actually pop thincause the economy could go on the fritz :ohno:

[teo 609]

lol thanks for poiting that out lol i fixed it

And its only good for Canadians who bought a house years ago. For someone like me hoping to buy my first house when i get my next raise, i hope the bubble deflates.

Dont want the bubble to actually pop thincause the economy could go on the fritz

Oh. :( Good luck then. I'm sure the prices will eventually normalize. This happened in my country too 3 years ago. There were apartments in my city priced like they were in Upper East Side in Manhattan, not in some Eastern European country. lol It's all back to normal now kind of, property is still way too expensive imo, but at least it's not laughable. 

[Economy 52,882]

Oh. :( Good luck then. I'm sure the prices will eventually normalize. This happened in my country too 3 years ago. There were apartments in my city priced like they were in Upper East Side in Manhattan, not in some Eastern European country. lol It's all back to normal now kind of, property is still way too expensive imo, but at least it's not laughable.

thing is we been in a housing boom since the year 2000 and because of low rates that began i. 2008 and our banks didnt struggle like in other places, the boom only accelerated

Some years prices went up over 10% annually and since the year 2000 prices have gone up some 140%!!!! Construction also been crazy (though its normalized somewhat the last 2 years)

The Government has attempted to cool the market by tightning mortage rules by making maximum amortazations 25 years and minimum downpayments 20% but the boom hasnt stopped its only slowed a bit

By some measures we have the most overvalued real-estate in the world depending what factors u take into account.

At least our banks are highly capitalized and our tightly regulated financial system is hard to break. So banks shouldnt fail if the bubble burst

Also rates in this slow recovery will likely rise gradually so we probably will get a gradual correction rather than 1 large housing collapse. At least I hope so :ohno: