US household wealth tops $100T

[james.hendrickson]

Rising property prices have driven the net worth of U.S. households over the $100 trillion mark for the first time. In the first quarter, total worth grew by $1.028 trillion to $100.768 trillion, The Wall Street Journal said, citing Federal Reserve data. The expansion came in spite of the $436.2 billion dent administered by stock market declines. Real estate values increased by about $489.6 billion in the first three months of the year, per the Journal.

Source: Linkedin News.

[Smallsteps]

This is household wealth on paper but reality may be different.
In my area close to a well known as unaffordable... the prices in my area about an hour commute away have skyrocketed too.
A couple homes in the neighborhood have sold at a high price now some neighbors have decided they are better off then they thought and are spending more freely and not avoiding debt. Same thing in some other areas close by.
I wonder what these people will do if in a pinch they have to sell and the market cools off ?
I think it is giving people a false sense of security if they even look at things like Zillow and estimates are way over what they thought. I think many people are counting their chickens before they hatch.

[msomnipotent]

Two homes just went into foreclosure in my subdivision. We were hit hard when the housing boom collapsed and there were foreclosures on almost every block, but we haven't seen one since prices stabilized until now. I have a feeling we will be seeing more with every rate hike, so it won't be $100T for long, I think. I think a lot of people stretched themselves to get a home here and got an adjustable rate for the cheaper payments. Now that rates are going up, their credit card payments are going up and their ARM's aren't looking so good.

[james.hendrickson]

Two homes just went into foreclosure in my subdivision. We were hit hard when the housing boom collapsed and there were foreclosures on almost every block, but we haven't seen one since prices stabilized until now. I have a feeling we will be seeing more with every rate hike, so it won't be $100T for long, I think. I think a lot of people stretched themselves to get a home here and got an adjustable rate for the cheaper payments. Now that rates are going up, their credit card payments are going up and their ARM's aren't looking so good.

Can you buy them? Why not be strategic when you see prices cratering?

[msomnipotent]

Can you buy them? Why not be strategic when you see prices cratering?

There was one that I was really interested in, but it was bought within a few hours of becoming available. The rest are still expensive even though they are in foreclosure. Houses in my subdivision go for $415,000 to $800,000 and I already have my mortgage and 1/3rd of the mortgage on a lake house. Plus, I really don't like the subdivision. We are saving up for a vacation rental, though.