by Christopher Freeburn | March 8, 2013 10:05 am
Americans are feeling a little richer these days.
According to the Federal Reserve, U.S. household net worth rose 1.8% during the fourth quarter, compared to the previous quarter. That marked a $1,17 trillion boost to $66.1 trillion, the best showing in five years, Bloomberg noted.
The increase was partly fueled by rising home prices. Recovering real estate values will offset the impact of higher 2013 taxes. Real estate net worth for American households rose $478.6 billion during the quarter, the largest gain since 2006.
However, other financial assets also saw their value jump, too. Stocks and pension-fund holdings by U.S. households rose by $784.4 billion last quarter.
Despite the good news, U.S. household net worth remains lower than the $67.4 trillion high set in 2007, just prior to the mortgage crisis and recession.
Last month, the S&P/Case-Shiller Index showed that prices for existing homes in 20 major cities rose 6.8% in December, the biggest year-over-year gain for the index since 2006, and beating economists estimates.
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