— A global rally in bonds and equities supported Canadians’ wealth at the end of last year, offsetting continued declines in real estate values.Canadians’ household net worth rose 1.8% to C$16.42 trillion in the fourth quarter, Statistics Canada said Wednesday. The increase was driven by a 5% jump in the value of household financial assets, the biggest increase since 2010, outside the pandemic.The value of residential real estate fell 1.
The data point to the financial resilience of Canadian households, which have continued to grow their wealth even as one of the most aggressive hiking cycles in Bank of Canada history restricts housing market activity. “It’s one more reason to think that the economy isn’t headed toward a cliff, and instead is just facing a persistent headwind from elevated borrowing costs.”The household debt service ratio, which tracks the total payments of principal and interest that Canadians make as a proportion of their disposable income, was 15% in the fourth quarter, little changed from the previous month, but still the highest level in the history of the data.