U.S. Household Net Worth Rises To $84.9 Trillion In Q1 2015

The Federal Reserve has published its quarterly Z.1 report (also known as the Flow of Funds report) which summarizes the balance sheets for U.S. households.

U.S. household net worth increased to $84.9 trillion in the first quarter from $83.3 trillion in the fourth quarter of 2014, and is up 5.7% from last year.

Net Worth Change

Assets increased to $99.1 trillion from $97.5 trillion and liabilities were little changed at $14.2 trillion.

Net Worth

Financial assets as a share of total assets was 70.0% in Q1, down from 70.1% in Q4.

Assets Financial and Non

Real estate, the largest household asset, made up 24.3% of total assets from 24.2% in Q4.

Assets Composition

Home mortgages as a share of liabilities declined to 66.2% from a high of 75.0% in 2009.

Liabilities

U.S. Existing Home Sales Increase To Annual Rate Of 4.88 Million In February

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.2% in February to a seasonally adjusted annual rate of 4.88 million. This annual rate is 4.7% higher than the 4.66 million-unit level in February 2014.

Lawrence Yun, NAR chief economist, says although February sales showed modest improvement, there’s been some stagnation in the market in recent months. “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels,” he said. “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”

Adds Yun, “Severe below-freezing winter weather likely had an impact on sales as more moderate activity was observed in the Northeast and Midwest compared to other regions of the country.”

“With all indications pointing to a rate increase from the Federal Reserve this year – perhaps as early as this summer – affordability concerns could heighten as home prices and rents both continue to exceed wages,” adds Yun.

Existing Home Sales Change

The existing home sales rate decreased in 2 out of 4 U.S. regions in February:

  • Northeast: 0.58 million from 0.62 million month prior.
  • Midwest: 1.08 million from 1.08 million month prior.
  • South: 2.11 million from 2.07 million month prior.
  • West: 1.11 million from 1.05 million month prior.

Existing Home Sales

Total housing inventory at the end of February increased 1.6% to 1.89 million existing homes available for sale. That represents a 4.6 month supply at the current sales pace. Unsold inventory is down 0.5% from a year ago, when there were 1.90 million existing homes available for sale.

Existing Home Sales Supply

The median time on market for all homes was 62 days in February. That is down from 69 days in January. Short sales were on the market for a median of 120 days, while foreclosures typically sold in 58 days, and non-distressed homes took 61 days. 34% of homes sold in February were on the market for less than a month.

The national median existing home price for all housing types was $202,600, up 7.5% from a year ago.

Exiszting Home Sales Price

U.S. Household Net Worth Rises To $82.9 Trillion In Q4 2014

The Federal Reserve has published its quarterly Z.1 report (also known as the Flow of Funds report) which summarizes the balance sheets for U.S. households.

U.S. household net worth increased to $82.9 trillion in the fourth quarter from $81.4 trillion in the third quarter, and is up 5.2% from last year.

Net Worth Change

Assets increased to $97.1 trillion from $95.5 trillion and liabilities increased to $14.2 trillion from $14.1 trillion.

Net Worth

Financial assets as a share of total assets was unchanged at 70.0% in Q4.

Financial and Nonfinancial Assets

Real estate, the largest household asset, made up 24.2% of total assets from 24.3% in Q3.

Total Assets

Home mortgages as a share of liabilities declined to 66.3% from a high of 75.0% in 2009.

Liabilities

U.S. Household Net Worth Declines To $81.3 Trillion In Q3

The Federal Reserve published its quarterly Z.1 report today (also known as the Flow of Funds report) which summarizes the balance sheets for U.S. households.

U.S. household net worth decreased to $81.3 trillion in the third quarter from $81.5 trillion in the second quarter, and is up 6.7% from last year.

Household Net Worth

Assets were little changed at $95.4 trillion and liabilities increased to $14.1 trillion from $13.9 trillion.

Assets Liabilities and Net WOrth

Financial assets as a share of total assets decreased to 70.0% in Q3 from 70.3% in Q2.

Household Assets

Real estate, the largest household asset, made up 24.3% of total assets from 24.0% in Q2.

Household Assets All

Home mortgages as a share of liabilities declined to 66.7% from a high of 75.0% in 2009.

Household Liabilities

The World’s Gold

Gold

The total amount of mined gold in the entire world is somewhere in the ballpark of 175,000 metric tonnes (1,2,3,4,5). There are 32,151.7466 troy ounces in a tonne, giving us a total of 5,626,380,655 troy ounces of gold in existence.

After peaking in August 2011 at $1,826, the price per troy ounce of gold today is about $1,206. That means the value of all the gold in the world today is approximately $6.788 trillion.

As pointed out by @RudyHavenstein, there is a possibility that the U.S. Federal Reserve could end up carrying more assets on its balance sheet than the total value of gold in existence, should the price of gold continue to decline (or the Fed’s assets continue to increase).

The Fed is currently sitting on $4.408 trillion in reserves, which means that its balances would surpass the gold market at a gold price of $783.42 per troy ounce.

Gold Chart

Tightness Of Mortgage Credit May Be Excessive

Bernanke

Ben S. Bernanke said the mortgage market is still so tight that he’s having a hard time refinancing his own home loan.

The former Federal Reserve chairman, speaking at a conference in Chicago, told moderator Mark Zandi of Moody’s Analytics Inc. — “just between the two of us” — that “I recently tried to refinance my mortgage and I was unsuccessful in doing so.”

When the audience laughed, Bernanke said, “I’m not making that up.”

“I think it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said.

You Know It’s a Tough Market When Ben Bernanke Can’t Refinance

U.S. Household Net Worth Rises To $81.5 Trillion In Q2

The Federal Reserve published its quarterly Z.1 report yesterday (also known as the Flow of Funds report) which summarizes the balance sheets for U.S. households.

Household net worth increased to $81.5 trillion in the second quarter from $80.1 trillion in the first quarter, and is up 10.4% from last year.

Net Worth Change

Assets increased to $95.4 trillion from $93.9 trillion and liabilities increased to $13.9 trillion from $13.8 trillion.

Z1 Summary

Financial assets as a share of total assets increased to 70.3% in Q2 from 70.1% in Q1.

Assets Split

This was driven largely by increases in corporate equities.

Assets Composition

Home mortgages as a share of liabilities declined to only 67.2% from a high of 75.0% in 2009.

Liabilities Composition