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Households' balance sheet repair continues

According to the Federal Reserve, in just six months following the low of last March, households' net worth has increased by almost $5 trillion, or 10%. Household debt fell by almost $60 billion, the value of household real estate holdings increased by over $600 billion (yes, increased!), and thanks to a strong stock market and increased savings, households' financial assets increased by $4.2 trillion since last March.

Moreover, in the six month period ending Sept. '09, household disposable personal income rose by $235 billion, owner's equity in household real estate rose by nearly $1 trillion (yes, one trillion!), and owner's equity as a percentage of household real estate rose by 12%. This is an impressive and across the board improvement in key indicators of households' well-being. 

We've still got a ways to go to get back to where we were in 2007, but we're making excellent progress. That's one more thing to be thankful for as we approach the holiday season.

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