StatisticsCanada – real estate makes Canadians richer
According to Statistics Canada, we are becoming richer and the main financial source is our home.
The latest report shows that in 2012 the median net worth of Canadian families of 2 or more people was $243,800, which is 44.5% higher than 2005 and about 80% higher than in 1999 ($137,000). Such numbers, adjusted for the inflation, were provided in the new Survey of Financial Security.
Another important thing mentioned in the survey is that overall debt grew faster than assets. In the same time, as assets are larger than debts, the net worth was still up.
According to the recent report by Royal Bank of Canada, interest rates will go up soon, reducing the housing affordability in many Canadian markets. Is it a reason for mortgage brokers to expect a new wave of clients in the nearest future?
“In RBC’s opinion, as longer-term rates start rising, the costs of owning a home will gradually outpace the household income growth by late-2014. As a result, the affordability will be strained in several Canadian markets, following the example of Toronto,” - RBC chief economist Craig Wright noted.
Canadian inflation rate is rising, while the chances for interest rate cut get weaker
Last month Canada’s annual inflation rate rose from 1.2% in December to as high as 1.5%. As a result, the chances for an interest rate cut got weaker.
According to Statistics Canada, the monthly prices increase in January was 0.3%, and it’s also more than predicted, especially, after December decrease of 0.2%. Meanwhile, core inflation, excluding such volatile items like gasoline and fruit, was as well higher than expected: 0.2% on a monthly basis and 1.4% - on an annual basis.