Despite signs of weakness in the housing market, and financial market volatility, total household net worth climbed a bit in the second quarter, Statistics Canada reports.
The national statistical agency said net worth rose by 0.2% in the second quarter, an increase of $42.4 billion to $17.0 trillion, as total assets passed the $20 trillion mark for the first time.
“Overall, households’ financial assets increased 0.9% ($94.0 billion) in the second quarter to reach a record high ($10.1 trillion) for the third consecutive quarter, despite weaker domestic equity markets,” StatCan said.
The value of non-financial assets dipped by 0.1% to $9.9 trillion, as the value of residential real estate declined by $12.1 billion.
“Average net worth per household remained steady at just over $1 million in the second quarter,” StatCan said, with the wealthiest 20% of households accounting for two-thirds of total wealth. The top quintile’s wealth averaged $3.4 million.
Additionally, the household saving rate increased to 7.2% in the second quarter, StatCan said, “as gains in disposable income outweighed increases in nominal consumption expenditure.”
It also reported that household debt — including consumer credit, and mortgage and non-mortgage loans — grew 0.8% in the second quarter to $2.97 trillion.
“Household credit market debt as a proportion of household disposable income fell for the fifth consecutive quarter, dropping to 175.5% in the second quarter,” StatCan said, as income grew by 8.5%, outpacing debt growth of 4.3%.
Yet, the household debt service ratio edged higher to 14.97% in the quarter, up from 14.89% at the end of the first quarter, the agency said.