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Americans household wealth hit record highs in the second quarter of 2019. Stock prices are near record highs after the Federal Reserve have cut rates and investors ignore global economy slackness from the trade war and Brexit.

Toll Brothers

Balance Sheet of Households and Nonprofit Organizations, 1952 - 2019


From the Federal Reserve's financial accounts report, previously known as the flow of funds survey

U.S. household wealth increased in the second quarter to yet another record by $1.83 Trillion to nearly $113.5 trillion, a gain of 4.5% from $111.6 trillion in Q1.

The solid job market coupled with low inflation is improving Americans purchasing power, sustaining household spending which is the largest component of the U.S. economy.

US Household Net worth Q2 2019

Much can be traced back to the gains in the stock market since its lows after President Trump was elected November 2017 with solid gains in financial assets, the S&P 500, Nasdaq and Dow Jones Industrial indices are all hit record highs after the stock swoon in December. Property prices have also risen in this period

Increase of $1.83 trillion for the quarter US household net worth for the second quarter rose by $1.83 trillion to $113.5 trillion. The prior quarter saw a increase of $5.1 trillion.

US Household Net worth Q2 2019.PNG Financial Assets

  • The value of equities increased $893.7 billion versus Q1
  • The value of real estate rose $257 billion.
  • 2Q nonfinancial corporate liquid assets grew by $220.5 billion to $4.469 trillion
  • Total credit rose 4.1% to $73.80 trillion
  • Outstanding homeowners real estate holdings minus the change in mortgage debt rose $40.6 billion.

The positive value is indicative of the value of real estate is growing at a faster pace than household mortgage debt owners equity as a percent of total real estate value fell 64.2% at $18.689 trillion

Total business debt climbed at 4.4% annual pace consumer debt accelerated with mortgages rising at 3.2% pace and other credit rising by 4.6%

US Household Net worth Q2 2019 Liabilities

For the quarter US stocks rose at a slower pace versus the first quarter. Property values, also decelerated but kept rising as a result of a shortage of inventory and lower mortgage rates

Source: Federal Reserve

From The Traders Community News Desk 

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