Net Worth in the US
“Movements in the dollar value of families’ net
worth are, by definition, a result of changes in
investment, valuation, and patterns of
ownership of financial assets and
fi i l t ll d i i
nonfinancial assets as well as decisions
about acquiring or paying down debt.”
Changes in U.S. Family Finances from 2004 to 2007: Evidence from the
Kennickell,
Survey of Consumer Finances. Brian K. Bucks, Arthur B. Kennickell,
L. B. Moore. Bulletin, vol.
Traci L Mach and Kevin B Moore Federal Reserve Bulletin, vol 95
A1-
(February 2009), pp. A1-A55
S&P 500 Index
62.5 percent of home owners and 26.0 percent of
renters had direct or indirect stock holdings and
were likely impacted by the market decline in 2008
US Median Home Price
Home price declines in 2008 directly impacted the net
worth of many families who own their home
y percent of owner-occupied housing in any
Only 6.7 p p g y
given year sells; the change is “unrealized” for home
owners who have not sold
U.S. Typical Net Worth
2008 Dollars
1995 1998 2001 2004 2007 2008*
$250,000 $243,100
$225,000
$205,200*
$200,000
$175,000
$150,000
$125,000
$100,000
$100 000
$75,000
$50,000
$25,000 $5,300
$4,200*
$0
Renter Homeowner
*2008 data includes NAR estimate of change in Net Worth due to changes in home
price and stock declines
Source: Federal Reserve/NAR calculations
Pittsfield, MA Home Price Trend
Median Price
$250.000
$200.000
$200 000
$150.000
$100.000
$50.000
$50 000
$.000
1988
8
9
1989
1990
0
1991
1
1992
2
3
1993
1994
4
1995
5
6
1996
1997
7
1998
8
1999
9
0
2000
2001
1
2002
2
3
2003
2004
4
2005
5
6
2006
2007
7
2008
8
Source: NAR
Homeowner Equity in
Pittsfield, i
Pi fi ld MA in 2008
5 year 10 year 15 year 20 year
$140,000 $129,943 $131,972
$120,000 $111,849
$100,000
$80,000
$61,367
$60,000
$40,000
$ ,
$20,000
$
$‐
Source: NAR
Equity from Price Gain and from Principal Payments