We often discuss fundamentals like price:rent and price:income. This chart reflects a ‘fundamental’ that is of central importance in understanding the Vancouver RE market.
Anybody care to guess?
[x-axis years; y-axis percent. I’ll post the source later.]
UPDATE and answer:
The chart shows Canada’s Household Debt to GDP Ratio.
It’s clear where the housing bubble came from.
Debt Increasing At An Unsustainable Rate.
It’d be fascinating to see the equivalent chart for BC alone.
[The chart is taken from a recent David Rosenberg commentary. ]