E Canadian Net Worth Increases Despite COVID-19

Canadian National Wealth

Much of this increased wealth has been generated from the surge in home prices, and many observers are issuing warnings about the lack of sustainability of personal real estate values. Bear in mind that home prices have increased, on average, by 8.7% annually over the past decade. According to the national statistical agency, owner equity in real estate actually climbed to 77% in the first quarter of 2021, supporting the assertion that real estate borrowing does not pose a systemic risk. 

Moreover, there has been a shift in the composition of household debt in which mortgage debt increases while non-mortgage loans decline. Overall debt, as measured against total consumer assets, is at the lowest level in nearly 20 years. So, how would one characterize these times --- the worst or the best?

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Arthur Donner 3 months ago Contributor's comment

Hard to believe, but you are right