Over the last year or so, the value of homes in the United State have been on the rise, and this has actually helped to increase the overall wealth of Americans (as a whole) to $88.1 trillion for the first quarter of 2016. This is the highest it has ever been, and when you look at the housing trends, you can see what a difference it has made.
Real Estate Values Up
The residential real estate values in the country climbed to $498 billion in the first quarter of 2016, and this has helped to negate the shakiness that the stock market has seen in those same months. In fact, the overall value of equities in the country during the first quarter dropped by $160 billion, according to a report released by the Federal Reserve.
The power of the real estate market was able to turn around the faltering stock market, and that’s quite impressive given the fact that it was only a few years ago that real estate was in turmoil. Everyone remembers the recession of 2007 and what happened to the housing market. At that time, the housing market lost more than $12 trillion. In 2009, the Americans’ net worth dropped to $44 trillion.
Even though the numbers have not been adjusted for inflation, there has been a substantial amount of growth that has been able to outpace inflation. The increase in home values has helped to boost the wealth of many middle class families across the country.
What Else Has Contributed to the Increased Wealth?
One of the other major factors that has contributed to the rise in Americans’ wealth is the fact that fewer people in the country are taking on debt. They seem to have learned quite a bit from the last recession, and the millennials who are now adults are following the path of the older generations who have learned their lesson.
With good fortune, good investments, and by keeping debt low, it might be possible to keep the wealth of the country high, and hopefully make it rise even more in the coming years.
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