The net worth of Canada’s households dropped by almost $1 trillion Canadian dollars ($775 billion) in the second quarter, according to data from Statistics Canada.

According to the report, household net worth had not dropped that much since at least 1990. Even the 5% decline in the third quarter of 2008 amid the global financial crisis was eclipsed by the present decrease.

At the same time, household credit market debt as a proportion of disposable income increased from 179.7 to 181.7%, over the first three months of 2022.

There was a decline of $323 billion in residential real estate holdings held by households in the three months between April and June, as financial assets dropped by $409 billion.

Statistic Canada added, “The streak of gains in real estate that began in late 2018 was halted by a housing market grappling with rapidly rising interest rates.”

As home prices in the country continue to fall and borrowing costs continue to rise, the decreases in net worth are expected to continue into the second half of the year.

The Bank of Canada raised its interest rate by 75 basis points last week to 3.25% in attempt to cool off rising inflation as it hit hits highest level in decades. Analysts expect to see another 50 basis point hike from the central bank next month.