Real estate accounts for nearly half of Canada’s GDP growth

August 16th, 2016  |  Home

Canada’s economy has been somewhat circling the drain for the last few years, growing slightly every so often before sliding into decline for a few months. While that means the country overall isn’t doing so well, it does highlight just how important the housing market has been these last few years.

The climbing prices mean more cash is moving around the economy and with how bad things are in every other sector, the booming housing scene is more important than ever for keeping the economy from going into freefall. According to Hibusiness.ca the real estate sector by itself was responsible for about half of the nation’s GDP growth in May.

While the housing market has done ridiculously well the past few years, the reality is that eventually demand is going to fall and there won’t be nearly as much growth in the future. If that happens the GDP is going to suffer without another high growth industry to take its place.

For consumers, the strong housing market means it’s a good time to look for deals on mortgage rates, but it’s a bad time for finding reasonably priced homes in most major markets. Housing affordability has many fearing the possibility of a housing bubble that could tank the whole economy. However, recent data argues against the likelihood of a housing bubble.