According to economists, residential investment makes up 7.5 per cent of Canada’s economy, its gross domestic product is over $2 trillion and national wealth valued at over $11 trillion. That is a huge concern as the real estate market is slowing.
Statistics Canada released last week its third-quarter report on national wealth, which is the “value of non-financial assets in the Canadian economy.”
Total national wealth hit $11.415 trillion in the third quarter, and at $8.752 trillion, real estate made up a 76-per-cent share of that figure — nearly all but a quarter.
That was the highest that both figures had been, going back to the second quarter of 2007.
Data also showed that in the US, real estate as a share of the national wealth was previously 75.3 per cent, compared to 67.6 per cent in Canada.
The BoC’s workhorse model says that six quarters can pass before a rate hike can be felt in the economy, they noted. So far five quarters have passed and there is a definite slowdown. -CINEWS