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Contents contributed and discussions participated by Maria Li

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Canadian consumer debt rises $1,000 per person - 1 views

money.canoe.ca/...20110601-122929.html Consumer Debt
shared by Maria Li on 03 Jun 11 - No Cached
  • The average debt load per Canadian consumer rose 4.5% this quarter over last year, according to new figures compiled by TransUnion
  • That works out to $1,000 per person and excludes mortgage costs.
  • Credit card, line of credit and auto-loan debt jumped most in Quebec and Newfoundland and Labrador with gains of 7.8% in both provinces. Quebec's total average debt load per consumer stood at $18,025 for the quarter. Newfoundland's was $23,372. The national average is now $25,597.
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  • Lines of credit are the largest category of consumer debt in the country accounting for 41% of all outstanding debt though delinquency rates are very low. Line of credit debt was up 5.9% in the quarter over last to an average of $33,981. When compared to the final quarter of 2010 however, line of credit borrowing is down for the first time in several years.
  • This may be “an early sign that Canadians are shifting to a more conservative and restrictive form of financing to manage their debt loads,”
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House prices fall sharply in May - Hometrack | Reuters - 0 views

uk.reuters.com/...ometrack-idUKTRE74S2XA20110529 Housing Prices
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  • House prices in England and Wales dropped at their fastest annual pace in over 1-1/2 years in May as demand fell for the first time since January
  • Property research company Hometrack said prices were 3.7 percent lower in May compared with a year ago, the biggest decline since October 2009.
  • Economists expect high inflation, weak wage growth, tax rises and public spending cuts to weigh on consumer spending and house prices this year, despite record low interest rates.
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  • The GfK NOP measure showed its biggest rise in almost 20 years in May, although analysts said it may have received a temporary boost from unusually fine weather, the royal wedding and a run of public holidays.
  • The Hometrack survey showed that the number of new buyers registered with estate agents fell by 0.5 percent in May, the first decline since January.
  • The number of sales agreed rose by 1.6 percent in May, lower than the 8 percent jump seen in April and March's 12.6 percent rise.
  • London continued to buck the national trend, with prices up by 0.2 percent on the month.
  • "With concern over household finances and the wider economic outlook, demand for housing is likely to continue to post further modest declines over the summer,"
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Canadians keep loading up on debt | Personal Finance | Financial Post - 1 views

business.financialpost.com/...adians-keep-loading-up-on-debt Consumer Debt Mortgages
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  • Add another $1,1oo to the average Canadian debt load — and that’s not even considering mortgage loans
  • average Canadian debt, not counting mortgages, climbed to $25,597 in the first quarter, up from $24,497 a year earlier for a 4.5% increase
  • debt was down $112 from the fourth quarter which is in line with seasonal trends
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  • Canadians are doing a better job of managing their credit card debt which was down $25 on a year over year basis to an average of $3,539 at the end of the first quarter
  • irst quarter data shows a continued increase in the total debt per consumer, although the trend still remains modest compared to the double digit, pre-recession levels
  • Lines of credit continue to drive debt and are the largest contributor after mortgages, accounting for 41% of the outstanding debt in Canada at the end of the first. Delinquency longer than 90 days were .21%
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Rate hikes okay for most but a 'financial shock' for many - The Globe and Mail - 0 views

www.theglobeandmail.com/...article2041683 Consumer Debt Mortgages
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  • Most Canadians should be able to handle higher interest rates expected later this year, but many will still see a "financial shock," Toronto-Dominion Bank economists say
  • "The main question is how households will respond to the eventual rebalancing of monetary policy, TD economists Craig Alexander and Diana Petramala write in a new report that looks at indebtedness among Canadian households.
  • Canadians will experience a financial shock when interest rates eventually rise, but the vast majority of households should be able to cope so long as interest rates rise only gradually
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  • Bank of Canada held its benchmark overnight rate steady at just 1 per cent, citing global uncertainty and the impact of the strong Canadian dollar, but said rates must eventually rise
  • Annual personal credit growth slowed to a year-over-year pace of 6.4 per cent in April, compared to an average 10.9 per cent in a period spanning 2004 to 2008
  • The moderation in credit growth has been evident in all measures of debt
  • The debt-service ratio, the interest households must pay on their debt each month as a share of personal disposable income, climbed to a two-year high of 7.6 per cent in [the first quarter of] 2011, despite still record low interest rates.
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Housing Market: We're Looking at a Double-dip - 0 views

wallstreetpit.com/we-are-looking-at-a-double-dip Housing Prices
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  • housing is now officially in a double-dip recession, with prices in 12 of the 20 markets selling below their 2006 low prices, according to the Case-Shiller 20-city Index.
  • Housing Starts were weaker than expected in April, with an annualized rate of 523,000, which was below the estimate of 563,000, and the result of 585,000 in March. Building Permits were also soft at an annualized rate of 551,000, below the estimate of 590,000, and a revised 574,000 in March
  • The reality is that the continued weakness in housing impacts wealth and consumer spending, and could drive a double-dip in the most extreme circumstance.
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  • housing market is improving and is better than where it stood a year ago
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