‘s national balance sheet and financial flow accounts figures released on Monday, the total value of all residential real estate in the country fell by $446.3 billion to $billion during the quarter, a marked reversal from the $344 billion rise recorded in the prior quarter.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
In terms of household wealth, non-financial assets including real estate declined by $389.8 billion while financial assets fell by a record $530.6 billion in the quarter. Despite the decline, the value of household residential real estate remains 41 per cent above the level recorded at the end of 2019. An increase in financial liabilities of $69.8 billion as outstanding mortgage debt continued to expand, helped drive the overall drop in household wealth to nearly $1 trillion, or 6.
“Today’s release revealed that households faced rising financial headwinds in the second quarter,” Ksenia Bushmeneva of TD Economics said. Bushmeneva attributed the drop in household wealth to the selloffs in financial markets earlier this year combined with a decline in house prices. Average resale prices dropped to roughly $710,000, while home resale inventory levels remained lower than average. By July, the average resale price dropped further to $635,000.
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