Some good news from Statistics Canada. Canadian households were wealthier in the 4th quarter of 2023.
The federal number-crunchers say household net worth rose by 1.8%, largely because of stronger financial markets. Both bonds and stocks rallied from slumps experienced in the third quarter. Net worth is the value of all household assets, minus all liabilities.
Over the year as a whole, 2023 saw household financial assets increase by 7.0%, with non-financial assets rising 1.8%. Financial liabilities also increased, climbing 3.4%. That is the slowest accumulation of household debt in a calendar year since 1990.
The household saving rate was up. It came in at 6.2% in Q4 of 2023 compared to 5.6% for the same period a year earlier.
Canada's hefty debt-to-income ratio eased slightly in the 4th quarter, dipping to 178.7% from 179.2% in Q3. So, Canadian households still owe about $1.79 in debt for every dollar of disposable income.
Residential real estate has been holding its own, although the market has been inconsistent. The value of residential real estate declined 1.9% in Q4, the second drop in a row. However, for the entirety of 2023 value increased by 1.8%, due to stronger performance in the first half of the year.