Are we feeling less well-off? Well, apparently we are. Some $88.9 billion less well-off, in fact.
Latest figures from Stats NZ show that in the June quarter the net worth of New Zealand households fell $88.9 billion (3.7%).
This followed a $40.1 billion fall in the March 2022 quarter and means that household net worth - the value of all assets owned by households, less the value of their liabilities - shrank by $129 billion, or 5.2% in the first half of the year.
It's of course mainly due to the falling house prices.
And the two consecutive quarters of falling worth follow 10 consecutive quarters of some quite spectacular gains - again mainly driven by house values.
But while that's all been going on, in the June quarter household saving increased to $2.1 billion after it had dropped in the first quarter to just $230 million. Household spending was reduced by around $1 billion in the June quarter (to a touch under $52.8 billion) - some belt tightening perhaps.
On the net worth figures, Stats NZ's national accounts - institutional sectors senior manager Paul Pascoe said household net worth had increased $427.6 billion in 2021.
"Despite the last two quarters’ falls, household net worth of $2,347.0 billion was still higher than the level at December 2020 of $2,048.3 billion," he said.
While the falling asset values were mainly about houses - they weren't all about houses. Dipping KiwiSaver and sharemarket values get a mention too.
Pascoe said over half of the $88.9 billion fall in household’s net worth in the June 2022 quarter fall was driven by falling property values for owner-occupied property, down $48.4 billion, or 3.7%.
Household financial assets fell $37.5 billion (2.7%) during quarter. These assets included ownership of shares, rental properties, investment funds and pension schemes including Kiwisaver, and deposits. Falls in the New Zealand stock exchange and falling land values contributed to the decline. Meanwhile, households continued to increase the level of their currency and deposits, up $3.2 billion (1.4%) during the June quarter.
Pascoe said New Zealand households spent less in the June 2022 quarter, while also experiencing steady income growth. Household spending decreased 1.9% to $52.8 billion, following an increase of 6.6% in the March 2022 quarter.
"The decrease in household spending partly reflected reduced purchases of durable goods, such as second-hand cars and electronics," he said.
In the June quarter household incomes grew 1.6% to $54.9 billion, following a 2.2% increase in the March quarter. Wage and salary increases were the largest factor contributing to income growth. However, increased government assistance (such as benefits and tax credits), and income of self-employed business owners and partnerships also contributed.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.