Maclean’s 23 Feb 2011 article highlights BCs vulnerable personal debt situation.
‘Canada’s Worst Spenders’
British Columbia has been Canada’s real estate debt champion since at least 1999
There’s been plenty of speculation that Vancouver’s hot housing market is in bubble territory, and as interest rates rise, that view is going to be put to the test. A new Toronto-Dominion Bank report says that one in 10 British Columbia households could find themselves scrambling to pay their bills if the Bank of Canada ups rates, as TD predicts it will—up to three per cent by the end of 2012.
The province has been Canada’s real estate debt champion since at least 1999, and it is the only one where the average savings rate is negative, according to TD.
Vancouver in particular seems to most resemble the housing run-up seen in the U.S. Two weeks ago, Robert Shiller, an economist at Yale University who correctly forecast the U.S. housing bust and helped develop the influential Standard and Poor’s Case-Shiller real estate index, likened the B.C. capital to San Francisco, one of the areas worst hit by the slump in the States.