Wednesday, December 23, 2009

FINANCE & THE ECONOMY: Did You Know? Household Net Worth Has Increased.

  • After seven consecutive quarters of decline, the net worth of households and non-profits increased for the second quarter in a row. The current net worth of households and non-profits is 53.4 trillion according to Federal Reserve Flow of Funds data.
  • This is a 5.3 percent improvement over the second quarter and a 10.2 percent improvement over the first quarter.
  • Net worth has improved as a result of declining liabilities (including mortgages), financial assets (particularly corporate equities and mutual fund shares), and tangible assets (including real estate for households).
  • At its peak, the net worth of households and non-profits was 66 trillion. Net worth is nearing its long-term average of nearly 5 times disposable personal income.
  • In the aggregate, real estate held by households has increased by $850 billion over the last two quarters.
By Danielle Hale, Research Economist for Realtor.org December 14, 2009

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