“The median after-tax income for families of two or more people in B.C. remained unchanged between 2008, 2009 and 2010, after adjusting for inflation, said Wendy Pyper, analyst at Statistics Canada. There was a slight increase between 2007 and 2008, from $66,400 to $69,900, but since then incomes have remained unchanged at about $67,000.”
“Something is not working here [in the Canadian economy], this is not a positive report,” said Benjamin Tal of CIBC World Markets.
Canadians are spending beyond their means and it’s starting to catch up with them, said Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada, Inc. “It’s going to be even more of a problem if they continue these behaviours if their incomes are not rising,” Schwartz said. “If we see everything else go up in price, then they’re going to have trouble affording much of anything. It’s really important for Canadians to get their spending in order and reduce their debt.”
– from ‘Despite economic growth and job gains, family incomes remain stagnant’, Vancouver Sun, 18 Jun 2012
Housing prices ultimately follow incomes; if they go through a period of decoupling from rates of income growth, they will eventually reconcile. – vreaa