Wealth effect is anything but
Filed Under Main Content · Tagged: Assets, Bank Of Canada, Consecutive Quarter, Economist, First Quarter, Household, Net Worth, Ottawa Citizen, Recession, Royal Bank Of Canada, Statistics Canada, Stock Portfolios, Trillion, Wealth Effect
Ottawa Citizen- There is something about our stock portfolios and homes being worth more that makes us want to spend.
“It’s called the wealth effect. If you feel you have more, you are more willing to spend more,” says David Onyett-Jeffries, an economist with Royal Bank of Canada.
“When people see their house value increase, they are more willing to spend because there is less requirement to save. They view these assets as being marketable and gaining value.”
Statistics Canada said this week that household net worth increased by 1.3% in the first quarter to $6-trillion — a fourth consecutive quarter of improving wealth. Household net worth has recovered 96% of what was lost during the recession…
Household worth rebounds after recession
Filed Under Main Content · Tagged: Asset Prices, Assets, Borrowings, Canadians, Decline, Economic Downturn, Economics Research, Economist, Household Debt, Jeffries, Liabilities, Low Interest Rates, Net Worth, Rbc, Rebounds, Recession, Residential Real Estate, Rising Stocks, Statistics Canada, Trillion
Times Colonist- Rising stocks and home prices have helped restore almost all of the value Canadians lost in household net worth during the economic downturn.
Household net worth rose 1.3%, or by $74-billion, to $6-trillion, as the growth in the value of assets, particularly equities and residential real estate, exceeded the increase in liabilities, Statistics Canada reported Monday.
“This marks the fourth consecutive quarterly improvement in household net worth and reflects a 96 per cent recovery off the net worth lost during the recent economic downturn,” David Onyett-Jeffries, economist at RBC Economics Research, wrote in an analysis.
“The increase of household net worth continues to repair the cumulative $552-billion decline.”
Household debt has also risen as low interest rates have encouraged Canadians to increase borrowings, but that has led to strengthening in demand and asset prices, particularly housing, said Mr. Onyett-Jeffries…
Household worth rebounds after recession
How Canadians are growing richer but deeper in debt
Filed Under Main Content · Tagged: Canadians, Credit Debt, Federal Statistics, Financial Assets, First Quarter, Fourth Quarter, Globe And Mail, Globe Mail, House Prices, Household Credit, Household Debt, Household Income, Liabilities, Mortgages, Net Worth, Residential Real Estate, Rose, Statistics Canada, Stocks, Trillion
The Globe and Mail- Canadians are getting richer as stocks and house prices rise. Household net worth rose 1.3 per cent in the first quarter of the year, or $74-billion, to $6-trillion, Statistics Canada said today, as the value of assets eclipsed the rise in liabilities. “This follows a 1.8 per cent advance in the previous quarter,” the federal statistics gathering agency said. “Gains in the value of financial assets, especially equities, as well as increases in residential real estate contributed to the advance in net worth.”
Household debt also rose, particularly mortgages, Statistics Canada said. The ratio of household credit market debt-to-income now stands at 147 per cent, up from 144.9 per cent in the fourth quarter of 2009…
How Canadians are growing richer but deeper in debt – The Globe and Mail
