Virginia Beach Region

							            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
  Virginia Bch-Norfolk-Newport
 News, VA NC H
 N                  Price Trend
       VA-NC Home P i T       d
                  Median Price

$300.000

$250.000

$200.000

$150.000
$150 000

$100.000

 $50.000

   $.000
           1988
              8
           1989
              9
           1990
              0
              1
           1991
           1992
              2
           1993
              3
           1994
              4
              5
           1995
           1996
              6
           1997
              7
           1998
              8
              9
           1999
           2000
              0
           2001
              1
              2
           2002
           2003
              3
           2004
              4
           2005
              5
              6
           2006
           2007
              7
           2008
              8
    Source: NAR
 Homeowner Equity in Virginia
 Bch-Nrflk-Newprt News, VA-NC
 Bch Nrflk Newprt News VA NC
                                in 2008
                   5 year   10 year    15 year   20 year

$200,000 
                                                        $180,670 
$180,000                                    $163,348 
$160 000
$160,000                        $143,029 
$140,000 
$120,000            $107,678 
$100,000 
 $80,000 
 $60,000 
 $40,000 
 $20,000 
     $
     $‐

    Source: NAR
    Equity from Price Gain and from Principal Payments