26 February 2014
27 February 2014
“It’s obvious that Canadians prefer investing in real estate instead of mutual funds, stocks or bonds,” – noted TD economist Leslie Preston.
The growth in the value of principal residences was up by 52% from 2005 to 2012. During this period the average home price in Canada rose by 45% and home ownership got more popular.
“Of course, there are skeptics saying the real estate market is unstable but we don’t expect any market bubble in the nearest future,” – said BMO senior economist Robert Kavcic.
The biggest asset source, aside homeownership, was private pensions, including employer pension plans, RRSPs and RRIFs. According to StatsCan, the reason for such a trend is the aging population.