Household Net Worth Increases by $2.7 Trillion

US household net worth, hurt badly by the financial crisis rose for the second consecutive quarter on the back of a surging stock market.

The third quarter saw net worth increase by 5 percent or 2.7 trillion to 53.4 trillion. The increase in net worth is coupled with a 17 percent increase in stock holdings, signaling investors were enticed by low stock prices following the financial crisis. The housing market also contributed to the increase of net worth with real estate values increasing 2 per cent in the third quarter. Home prices benefited from a first time home buyer's credit worth $8,000. Many experts believe the rise in net worth is further evidence of a recovery despite 10 percent unemployment a federal government whose debt increased at an annual rate of 21%. Household debt fell by 2.6 percent annually during the same period, the fifth consecutive decline.