Household net worth fell $252 billion, or 4.4% in the fourth quarter of 2008 as stock prices continued to fall, Statistics Canada reported on Monday.

The second consecutive quarterly decrease was the largest quarterly drop in the series, which dates back to 1990.

On a per capita basis, the second consecutive quarterly drop saw household net worth from $179,300 in the second quarter of 2008 to $165,300 in the fourth quarter, a $14,000 decrease.

In comparison, household net worth in the United States fell 9% in the fourth quarter, their sixth consecutive quarterly decline.

CIBC World Markets economist Peter Buchanan said Canada’s household wealth has been hit less hard than the U.S. due to the healthier housing market.

“Household wealth, so far at least, is holding up better than it is stateside, thanks to a less severe housing downturn,” Buchanan said.

StatsCan attributed the drop to deteriorating equity prices, which sent the S&P/TSX composite index down 24% in the fourth quarter to close at 8,988 in December 2008, led by substantial declines in energy stocks.

The turmoil on equity markets significantly reduced the value of shareholdings as well as that of pension and life insurance assets of households, Statscan said.

The total value of household assets fell 3.2% in the fourth quarter of 2008. This compares with the 2.7% drop in the third quarter of 1998, when Canadian stock prices were affected by the Asian financial crisis.

The decline in households’ assets was partially offset by the increase in non-financial assets, specifically residential structures.

In comparison, household assets in the United States have been decreasing since the fourth quarter of 2007, with total assets declining by 7.6% in the fourth quarter of 2008.

Credit market debt of the household sector grew 1.7% and reached $1.3 trillion at the end of the fourth quarter of 2008, a smaller increase than the growth of 2.4% in the previous quarter, as mortgage borrowing slowed in the fourth quarter.

Total household liabilities relative to net worth edged up during the quarter. Households had 24.5¢ of debt for every dollar of net worth.

Meanwhile in the corporate world, credit market debt outstanding of non-financial corporations rose 3.6% in the fourth quarter — the largest increase since the second quarter of 1990 — principally due to increased bank loans.

Reduced earnings and fewer share issues, combined with the advance in borrowing, led to a substantial increase in the debt-to-equity ratio of non-financial private corporations in the fourth quarter. Still, Statscan reported that corporate leverage remained at historically low levels.

The federal government’s credit market debt rose by 14% in the fourth quarter of 2008, led by a record quarterly issuance of treasury bills. About half of this borrowing was linked to the Insured Mortgage Purchase Program, which financed significant acquisitions of mortgage-backed securities.

Overall, total government net debt at book value as a percentage of gross domestic product remained flat at 35.5%, far below the 92% reached in mid-1996.

The fourth quarter of 2008 also marked the largest increase ever in National Housing Act mortgage-backed securities outstanding. Lending institutions invested heavily in domestic fixed-income securities, while net new mortgage and consumer credit lending slowed.

National net worth reached $6.1 trillion, or $182,800 net worth per capita, in the fourth quarter of 2008, up from $179,400 in the third quarter of 2008.

However, the growth in national net worth advanced 2%, compared with an increase of 3.1% in the previous quarter, thanks to sluggish non-financial asset growth.

National wealth amounted to just under $6.1 trillion, growing less than 1%, a slowdown from the third quarter growth of 2.5%.

Canada’s net foreign asset position increased sharply to $50.1 billion in the fourth quarter, as the weak loonie boosted the value of foreign currency-denominated assets and Canadian direct investment abroad increased.