Last week, Statistics Canada released data stating that the Canadian housing market has been the biggest contributor to the steady incline in Canada’s economy. To put that into numbers, Canadas GDP grew by 1.5 percent last year (approximately 24.8 billion) and 7.2 billion of that was due to Real Estate.
Currently, the federal government is looking into whether steps need to be put in place to slow the Canadian Real Estate market. However, Will Dunning, the chief economist with Mortgage Professionals Canada disagrees with the need to slow the market and stated that “Now that the energy sector is no longer a major economic driver, a healthy housing sector is even more essential… It would be tragic to unnecessarily impair this key economic force”.
The growth in GDP in April was as projected by economists; however May is now projected to slow due to the fires in Fort McMurray and the closure of oil sand operations.