The net worth of Americans rose to $94.8 trillion in the first quarter of 2017
The net worth of Americans climbed to $94.8 trillion in the first three months of 2017, an influx of $2.3 trillion since the last quarter of 2016, data from the Federal Reserve show.
The net worth is $39 trillion more than during the recession in 2008.
Data shows that during January, February and March consumers’ stock portfolio values gained $1.3 trillion and real estate values climbed $499 billion.
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The spike in net worth can be linked to the rise of housing prices in much of the country. The strong demand and a tight supply of available homes have made the prices go up.
The U.S. National Home Price Index was up 5.8 percent in March, the fastest rate of growth in nearly three years.
”Confidence among businesses and consumers is still high, which we think will translate into faster growth,” Burt White, the chief investment officer at LPL Financial said.
But a high net worth comes with a growing household debt. The total household debt was $15 trillion in the first quarter, even higher than during the recession. Also, consumer credit was more than $3.8 trillion.
Another report from the Fed’s New York regional bank showed auto loan debt also rose to nearly $1.2 trillion in the first quarter, $96 billion more than the same period last year.
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