Putting it lightly, it was rough sledding for homeowners during the housing market crash. From 2006 to 2009, wealth was reduced by $7 trillion, but it has made a comeback in recent years, reports Bloomberg’s Steve Matthews.
After a low in the first quarter of 2009, the value of homeowners’ equity in real estate has more than doubled. What’s more, housing wealth is poised to reach a new record as early as the second quarter, say economists at the Federal Reserve Bank of St. Louis and Pantheon Macroeconomics Ltd.
From the end of 2013 through last year’s fourth quarter, home equity climbed 22% compared with a 11% gain in the Standard & Poor’s 500 Index. The stock index has declined 3% this year.