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A new report by a Swiss investment bank says Canada’s housing market may have already achieved the elusive soft landing through the tightening of mortgage restrictions a few years ago.
Credit Suisse’s annual report on global household wealth said that the global financial crisis of 2008 only briefly interrupted rises in residential construction and real estate prices in Canada. Canadian household debt continued to rise, and in 2012, the government took action, tightening lending rules for mortgages.
According to Credit Suisse, the government intervention “appears to have had the desired effect as house price increases have moderated in the last three years.”
The report also found that household wealth in Canada grew at an annual rate of 7.1 per cent (USD) between 2000 and mid-2014.
That’s compared to total global wealth, which grew by 8.3 per cent worldwide to reach $263 trillion (USD) — the first time global household wealth has passed the $250 trillion (USD) threshold — with Switzerland, Australia, Norway and the US leading as the richest nations.
The average wealth per adult in Canada is $274,500 (USD), which is 21 per cent lower than the same figure in the US. However, wealth is more evenly distributed in Canada, with the median Canadian adult worth $98,800 (USD) compared to $53,400 in the US. At $225,400 (USD), Australia has the highest median wealth in the world, largely a result of high urban real estate prices.
Canada has 1,138,000 millionaires, accounting for three per cent of the top one per cent of global wealth holders, despite having only 0.5 per cent of the world’s population.