Canadian household net worth fell by 2.1% in the third quarter, its second quarterly decline, according to Statistics Canada’s National Balance Sheet Accounts report released yesterday.
Although residential real-estate assets increased, this was more than offset by the decline in the value of household holdings of equities (including mutual funds) and pension assets.
The Standard and Poor's and Toronto Stock Exchange composite index fell more than 12% during the quarter.
Per capita household net worth declined to $180,100 in the third quarter from $184,700 in the second quarter.
This marked the sharpest quarterly reduction in stock prices and per capita household net worth since the fourth quarter of 2008.
Additionally, Canadian household credit market debt deepened in the third quarter as mortgage debt and consumer credit debt increased to $1 trillion and $448 billion, respectively.
Household sector leverage increased as the ratio of credit market debt to net worth rose to 25.2% in the third quarter.
The ratio of household credit market debt to personal disposable income increased to 150.8%, as debt levels increased while personal disposable income remained unchanged.
Jennifer Harrison
@JHarrisonBIV