Household Net Worth Grew During 4th Quarter

The Federal Reserve is reporting that household net worth in the fourth quarter of 2009 increased by $682.7 billion during the fourth quarter to almost $54.18 trillion. This was the third consecutive quarterly increase in household net worth.

During the fourth quarter, assets of the household sector increased by approximately $657 billion, while liabilities fell by $25.6 billion.

The Federal Reserve reported that tangible assets of the household sector fell during the last quarter of 2009 due to continued decline in the value of real estate assets. However, the Federal Reserve Flow of Funds data shows that owner’s equity as a percentage of household real estate increased to 38.1 percent, after bottoming out at 33.5 percent during the first quarter of 2009.

Financial assets of the household sector grew by $676.8 billion during the 4th quarter to $45.11 trillion. Household assets in deposits, corporate equities, mutual fund shares, and pension fund reserves expanded during the quarter.