BC Households Most Financially Vulnerable

Several factors contribute to the ferocity of a downturn in real estate prices. One is oversupply, another is how close to the financial edge homeowners are living. Prices will resist a fast slide if stubborn sellers pull their homes off the market rather than accept a loss, an action which cuts inventory.

B.C. most financially vulnerable province: TD

The bank [Toronto Dominion] places its baseline vulnerability at one, for the Canadian average. This year British Columbia was given a score of 1.24, meaning the province's average is 24 per cent more financially vulnerable than the national average.

The bank cited higher home ownership costs in the province for the higher score. The average savings rate is negative in B.C., the only Canadian province in which that's the case. Up to one in ten households in B.C. would be in financial stress if interest rates rise, the report suggested.