While some 25% of Canadian GDP has come from realty and related services over the past 7 years, nearly all–s0me 84%–of Canadian economic growth since 2010 has come from abnormally high activity in this sector. As a result, it does not require a price collapse, just a moderation in this activity, for the Canadian economy to flat line. Even the congenitally nearsighted Bank of Canada has admitted that the pace of growth in realty and related spending is ‘not sustainable’. So um, ya… Plan B?
After Home Capital, Canada’s Economy Suddenly Looks Frail. Here is a direct video link
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