America Hits Rewind, Lands in 1990 - and Other News Told In Charts
Americans have lost so much net worth that they’re essentially living back in the early 1990s.
A newly released Federal Reserve report says the median American family lost $49,100 or 39% of its net worth between 2007 and 2010, and 75% of that loss was due to the real estate crash, reports the New York Times.
Also: incomes are falling, families are in debt, fewer are saving for retirement or college, and the middle class is a big mess. On the plus side, if trends continue maybe we’ll get to relive punk rock and the ’80s.
Of course, the National Valuation does not take into account regional variances like we have been enjoying in the Pacific Northwest. As many homeowners recognize the market anomaly they are putting their homes on the market to take advantage of the current upswing. Many real estate professionals (not just agents) are awaiting the gates opening on the huge REO holdback of many asset managers. Records indicate as much as 80% of REO inventory is being held in abeyance for a variety of ostensible reasons, many of which boil down to simple politics. But 80% of the millions of homes being held may certainly have a significant influence on the entire market.
Chart courtesy of YCharts