Statistics Canada reported that Canadian debt-to-equity hit 163.4% in Q2, partly due to a revision that added a whopping 11 percentage points.
A ratio of 160 per cent was the mark that began the unwinding of earlier housing bubbles in both the U.S. and Britain, Royal Bank of Canada economist David Onyett-Jeffries pointed out.
There is a lively debate on Canadian housing but it has shifted toward how severe the correction will be, rather than if it’s coming.
For now, I think it’s impossible to trade around Canadian housing but it’s something to keep in mind for 2013.
