{"id":12059,"date":"2019-04-04T10:10:53","date_gmt":"2019-04-04T17:10:53","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=12059"},"modified":"2019-04-03T10:59:40","modified_gmt":"2019-04-03T17:59:40","slug":"a-golden-decade-for-wealth-creation-is-coming-to-an-end","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/","title":{"rendered":"A Golden Decade for Wealth Creation is Coming to an End"},"content":{"rendered":"

It was a good run while it lasted.<\/p>\n

With Canadian home prices declining in many markets and mortgage rates pushing up monthly costs for property owners, RBC says \u201ca golden decade for household wealth creation is coming to an end.\u201d<\/p>\n

Rock bottom interest rates, population growth and supply shortages in some markets propelled the Canadian housing market to new heights, but a recent report from Statistics Canada indicates household net worth is now declining. Household net worth dropped 2.8 percent to $10.7 trillion in the fourth quarter.<\/p>\n

\u201cTo be sure, we don\u2019t expect the scale of Q4\u2019s decline will be repeated. But a slowdown in housing and flatter price trends means real estate values won\u2019t provide the wealth boost they have in recent years.<\/p>\n

Canadian households are putting an increasing share of their income towards debt payments, including both principal and interest, following five Bank of Canada hikes (of 25 basis points each) to its policy rate since summer 2017. That brought the rate, which influences the mortgage market, to 1.75 percent, up from a rock-bottom 0.5 percent.<\/p>\n

The debt service ratio reflects this changing interest-rate environment. Last quarter, the debt service ratio, which lenders use to vet potential borrowers, reached 14.9 percent, compared to 14 percent in mid-2017, says RBC citing the Statistics Canada release.<\/p>\n

RBC anticipates the ratio will inch up further despite the Bank of Canada likely standing on the sidelines this year as a result of a weaker-than-expected performance from the national economy. That\u2019s because as households renew fixed-rate mortgages taken out in previous years, they\u2019ll be facing higher interest rates.<\/p>\n

\u201cAt this stage, we think the increase in debt servicing costs is more of a headwind to consumer spending than a financial stability risk,\u201d the RBC report states.<\/p>\n

Meantime, the debt-to-income ratio soared to an all-time high of 174 percent in Q4, meaning for every dollar of disposable income a household has, they owe $1.74.<\/p>\n

\u201cIt will take a long period of household incomes outpacing credit growth to deliver meaningful improvement in the debt-to-income ratio. We\u2019re not seeing that yet,\u201d says RBC.<\/p>\n

Lower Canadian Home Prices Mean “A Golden Decade” for Wealth Creation is Ending<\/a> by Josh Sherman | Livabl<\/p>\n","protected":false},"excerpt":{"rendered":"

It was a good run while it lasted. With Canadian home prices declining in many markets and mortgage rates pushing up monthly costs for property owners, RBC says \u201ca golden … [read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-12059","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"\nA Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"A Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"It was a good run while it lasted. With Canadian home prices declining in many markets and mortgage rates pushing up monthly costs for property owners, RBC says \u201ca golden … [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"A Golden Decade for Wealth Creation is Coming to an End\",\"datePublished\":\"2019-04-04T17:10:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/\"},\"wordCount\":371,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/\",\"name\":\"A Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2019-04-04T17:10:53+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2019\\\/04\\\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Golden Decade for Wealth Creation is Coming to an End\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling & Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/","twitter_card":"summary_large_image","twitter_title":"A Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty","twitter_description":"It was a good run while it lasted. With Canadian home prices declining in many markets and mortgage rates pushing up monthly costs for property owners, RBC says \u201ca golden … [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"A Golden Decade for Wealth Creation is Coming to an End","datePublished":"2019-04-04T17:10:53+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/"},"wordCount":371,"commentCount":0,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Market Updates"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/","url":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/","name":"A Golden Decade for Wealth Creation is Coming to an End • Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2019-04-04T17:10:53+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2019\/04\/a-golden-decade-for-wealth-creation-is-coming-to-an-end\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"A Golden Decade for Wealth Creation is Coming to an End"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling & Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=12059"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12059\/revisions"}],"predecessor-version":[{"id":12060,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/12059\/revisions\/12060"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=12059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=12059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=12059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}