Canadian households enjoyed a 1.4% rise in net worth during the final quarter of 2024, according to data released today by Statistics Canada. Asset values, minus liabilities, climbed $236.3 billion.
The country went four for four last year, with increases in each quarter. By year-end, balance sheets were up $1.2 trillion relative to the end of 2023. The figure landed just shy of $17.5 trillion.
Financial assets held by Canadian households rose 2% to $10.8 trillion at the end of 2024. That’s the fifth consecutive end-of-quarter record. By comparison, Canada’s main stock index, the S&P/TSX composite delivered a 3% return in Q4. A weakening loonie added value to those holding investments outside the country.
Financial liabilities rose 1.2% or $35.8 billion in the fourth quarter.
Non-financial assets ended the year at $9.8 trillion, mostly as a result of rising real estate values. There was a 0.6% gain in the fourth quarter, following a slide the previous quarter.
Investment activity solid
Net investment in mutual fund shares hit $107.6 billion last year. That’s the highest number reported by Statistics Canada since 2021. The fourth quarter was particularly strong — mutual fund inflows reached $52.6 billion, more than twice the $24.1 billion recorded in during Q3.
The household saving rate slipped from a three-year high of 7.3% in the third quarter to 6.1% in the year’s final quarter. Spending increased 2.1% in the fourth quarter, against a 1.1% rise in disposable income.
After sliding 1.1% over the second and third quarters, the value of residential real estate holdings rebounded 0.6% in the fourth quarter to $8.4 trillion. The number of home resales in Q4 jumped 9.5% on a seasonally adjusted basis, relative to Q3. Total resale values ended the year 8.5% higher than 2023, primarily as a result of an uptick in closings.
Household credit market borrowing — again, seasonally adjusted — rose to $40 billion in the fourth quarter. Credit market debt, including consumer credit, mortgage and non-mortgage loans, was up 1.3% in the fourth quarter, reaching more than $3 trillion for the first time.
The household debt service ratio — total obligated payments of principal plus interest on credit market debt presented as a proportion of disposable income — ended 2024 at 14.4%. That’s down from 15.1% at the end of 2023. It was the largest annual decline reported by Statistics Canada since 2020.