The wealth of individual Canadians climbed higher in the fourth quarter as the value of their stocks and real estate increased. Statistics Canada said Monday that household net worth rose 1.6 per cent to $5.9 trillion or $172,600 per capita in the last three months of 2009 compared with the previous quarter.

The increase reflected dramatic improvements in financial markets — the S&P/TSX composite index grew by three per cent in the quarter, pushing it to a year-over-year increase of 30 per cent — as well as a rebound in the housing sector.

The Canadian Real Estate Association says 36,275 homes were sold across the country in February, up 44 per cent from the same month in 2009, when the recession was still impacting both consumer optimism and loan activity.

However, household debt is also growing. This is largely due to low interest rates, which are prompting growing numbers of consumers to take out mortgages. Statistics Canada said the debt-to-income ratio for Canadian households increased from 143.0 per cent in the third quarter to 144.4 per cent in the fourth. In other words, the average Canadian household has $144.40 in debt for every $100 of disposable income.

The government agency also found that national net worth — the sum of the net worth of individuals, businesses and government — edged up by 0.3 per cent or $20 billion to $6 trillion in the quarter. This reflected higher real estate prices, moderated by an increase in net foreign debt. Government net debt grew to 43.7 per cent of gross domestic product from 42.3 per cent in the previous quarter due to spending on stimulus programs.