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But what puzzles him is whether anyone will hear bubbles burst one after another in Canada’s real estate market, as the country’s household debt ratio has reached an all-time high.
As the Bank of Montreal of Canada (BMO) points out, when the latest household debt ratio data are released, the current upward trend in Canadian household debt can be traced back to 26 years ago. According to the record of household debt, it shows no sign of slowing down.
Benjamin Reitzes, senior economist at the Bank of Montreal, said: “property in the Vancouver area appears to have cooled since the introduction of tax measures on foreign buyers, but the property market in the Toronto area remains strong, while the property market in other areas also shows signs of improvement.”
At the same time, the Bank of Canada has begun to issue frequent warnings about the country’s severe household debt and the irrationally driven real estate market, but Canadians seem to turn a deaf ear to the central bank’s warnings.
In the Toronto area, for example, property prices have risen nearly 15% since the summer. At the same time, Stephen Poloz, governor of the Bank of Canada, repeatedly warned that property prices in the Toronto area were “in a situation that is difficult to match on any defined basis”. The National Bank of Canada Real Estate Price Index (Teranet-National Bank House Price Index) has been tracking real estate prices in Toronto. But from a follow-up point of view, no six-month real estate prices have risen as fast as they did in the same period of this year. At the same time, the latest data released by Statistics Canada also show that Canada’s domestic household debt-to-income ratio hit an all-time high in the third quarter.