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U.S. Households See Net Worth Drop $1.7 Trillion
06.05.08 | Money | 1 Comment | by junger

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Americans $1.7 trillion poorer — CNNMoney.com

Americans saw their net worth decline by $1.7 trillion in the first quarter - the biggest drop since 2002 - as declines in home values and the stock market ravaged their holdings.

Meanwhile, the amount of equity people have in their homes fell to 46.2%, the lowest level ever.

The net worth of U.S. households fell 3% to $56 trillion at the end of March, according to the Federal Reserve's flow of funds report, which was released Thursday.

Wowzas, right?

Some of this is obviously inflated, since falling housing prices (which were off the scale during the bubble) made up $305 billion of the decline. But the news isn't that encouraging.

At the same time, there are now more than 1 million homes in foreclosure.

Are you a part of the net worth decline? Even if your home value has dropped, is your net worth (outside of real estate) doing the same?

Leave a comment and tell us.

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