Thursday, November 3, 2011
Canadian Total Household Debt With Some Average House Prices 1971-2010
Everyday, it seems I find more information about the housing bubble in Canada.
Much of the increase in house prices and household debt in the 70's was due to inflation. Inflation has been quite muted in the last 20 years relatively speaking.
Lower interest rates have helped Canadians accumulate more household debt over the last 20 years, but especially in the last 8 years. This coincides with the lower of amortizations, easier access of HELOC's and lax attitudes toward debt. It is of no surprise that many people are monthly payment consumers. And this rise in household debt is closely correlated to the explosive growth of the FIRE sector in the National Economy. I will touch on this tomorrow.