The coronavirus has had a pretty big impact on Canadian households and the housing market in general. The first quarter is when the market was only partially exposed to the pandemic and it caused household net worth to drop nearly 4% compared to the previous quarter. This is also the single highest decrease in a single quarter in over a decade. The Canadian housing market right now is going through a period that is very similar to the recession that happened in 2008 and there is a possibility that household net worths continue to drop upwards of 5%.
- In Q1 2020, Canadian households experienced their largest quarterly decline in net worth since 2008.
- The first quarter was only partially exposed to the pandemic, so the second quarter may be worse.
- Aggregate data doesn’t indicate which households may be losing or gaining net worth.
“For example, if a household only has $20,000 in savings, and $5,000 in debt – their net-worth would be $15,000.”