Despite the boom in the housing sector that the United States witnessed decades ago, but one country surpassed its counterparts in the growth of house prices, and that is Canada, which is witnessing a “craze” in housing prices, reinforced by the effects of the “Corona” pandemic, and the demand for housing in a larger household space, with a decline Interest rates, and millennials moving into primary purchases. Canada has witnessed a significant increase in prices more than all of the G7 countries. According to housing data compiled by the Federal Reserve in Dallas, nominal house prices in Canada rose at an annual rate of about 16% in the fourth quarter of last year, surpassing the United States, the United Kingdom and elsewhere. .
The “Wall Street Journal” warned of a real estate bubble in Canada or a collapse similar to 2008. Economic analysts have expressed concern about the huge role of real estate in the country’s economy, which may unfold in the next downturn.
The Canadian housing sector accounted for a share of GDP of 9.3% as of the fourth quarter of 2020, up from 7.5% a year earlier, and from 6.6% a decade ago.
In the United States, the housing sector accounts for 4.6% of GDP, while the housing boom reached its peak of 6.7%, according to BMO Capital Market data.
Canada witnessed the most significant price hike among all the G7 countries.
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