The value of Canadian residential real estate fell for the first time in over a year in the second quarter of 2022.
According to Statistics Canada's national balance sheet and financial flow accounts figures released on Monday, the total value of all residential real estate in the country fell during the quarter, reversing the $344 billion rise recorded in the previous quarter.
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The federal agency said in the report that the streak of gains in real estate was halted by the housing market.
In terms of household wealth, non-financial assets fell by $389.8 billion while financial assets fell by a record amount. The value of household residential real estate is still more than it was at the end of the year.
According to the release, households faced rising financial headwinds in the second quarter.
Bushmeneva said that the decline in household wealth was caused by the selloffs in financial markets.
Home resale inventory levels remained lower than average. The average resale price fell to $635,000.
Household debt grew by a near record amount in the second quarter. For every dollar of disposable income, they have $1.82 in credit market debt.
The savings rate fell to 6.2 per cent in the second quarter from 9.5 per cent in the previous quarter as expenditures outpaced income growth.
The measure of housing affordability was reversed. In the second quarter of 2020, real estate as a percentage of disposable income was 581.3.
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