Household net worth declined by 1.3% in 2009's first quarter. That, according to Statistics Canada data released on Monday, extends the decrease to a third quarter in a row.
Net worth fell $72 billion, resulting in a $510 billion decline in household wealth over the past nine months in Canada. Declines in the value of financial and non-financial assets contributed to the decline as a result of losses in the stock market and lower average real estate values.
On the bright side, the rate of decline is slowing, and Canadians have not had as severe a decline as their American cousins, who suffered declines of 2.6% in 2009's first quarter and 9% in 2008's fourth quarter. As a percentage of disposable income, household net worth has fallen faster in the U.S. than in Canada since 2007's third quarter, StatsCan said.
Total first-quarter household debt edged up slightly to $0.249 of debt for every dollar of net worth compared with $0.244 in 2008's fourth quarter. Growth in credit market debt, including credit cards, mortgages and loans, slowed to less than 1% in the first quarter as new mortgage borrowing slowed.
Overall, for the first time since 1995, national net worth, which includes non-financial assets plus net foreign assets, fell 0.4%. Deceleration in the growth of national saving and business investment contributed to the decline.