Are you in the middle class, 2023?

[Starport Seven-Five]

This happened to be in my news feed this morning -

https://www.cnbc.com/2019/05/14/the-net-worth-of-the-average-american-family.html#Echobox=1680804158

The difference between mean and median is striking. Really shows that a small number of people have a lot of money put away.

It's especially concerning when you consider that some of the older demographics had pensions which are much less common for those 45 and younger.

 

[nw6675]

That’s from 2019. Most net worth growth over the last couple of years has come from real estate. And medians are still around $100k, which isn’t enough to retire if you follow the 25x expense rule.

Updated in 2021

 

[RamblingMad]

Updated in 2021

It’s 2023.

 

[nw6675]

It’s 2023.

Yes, but not 2019.

 

[DLgal]

It’s 2023.

My guess is those numbers are about 10-20% lower now than they were in 2021 due to the market losses since then.

 

[RamblingMad]

My guess is those numbers are about 10-20% lower now than they were in 2021 due to the market losses since then.

Most people aren’t in the market. Only the top 10% has significant equity holdings. For most people their net worth is driven by their real estate.

 

[DLgal]

Most people aren’t in the market. Only the top 10% has significant equity holdings. For most people their net worth is driven by their real estate.

Real estate values have also trended downward since the highs in early 2022.

 

[amylevan]

Most people aren’t in the market. Only the top 10% has significant equity holdings. For most people their net worth is driven by their real estate.

Only the top 10%? Do you have backup on that? I would think that with the lack of pensions, most people have something in 401ks.

 

[RamblingMad]

Real estate values have also trended downward since the highs in early 2022.

Down 5% by me.

 

[DLgal]

Down 5% by me.

From what point in time?

 

[RamblingMad]

Only the top 10%? Do you have backup on that? I would think that with the lack of pensions, most people have something in 401ks.

I didn’t say only.

A lot of employers don’t offer 401k. And a lot of employees don’t participate. There is a large percentage of the population living paycheck to paycheck that don’t contribute. You can Google this. This is nothing new.

 

[RamblingMad]

From what point in time?

YoY. March 2022 v March 2023.

Real estate is very regional.

 

[DLgal]

YoY. March 2022 v March 2023.

Real estate is very regional.

Was March 2022 the high point in the market in your region? Here, it was May 2022.

 

[RamblingMad]

Was March 2022 the high point in the market in your region? Here, it was December 2021.

Let me see what I can find on FRED. I really haven’t looked. I only care about how much my home is worth when I go to sell.

Q3 2022 was the peak in my region.

 

[DLgal]

Let me see what I can find on FRED. I really haven’t looked. I only care about how much my hike is worth when I go to sell.

I had to edit my post. I was thinking about a different metric...the highest number of active listings was in Dec 2021.

 

[RamblingMad]

I had to edit my post. I was thinking about a different metric...the highest number of active listings was in Dec 2021.

Listings have been coming down faster than sales price. We have a shortage of single family homes because builders didn’t build as much after the Great Recession.

 

[DCLMP]

Also, as a reflection of the economy, it could be a false indicator. If 90% of the people packed into the Disney parks are going to put it on the credit card while still paying last year's Disney trip while struggling to pay the house payment or rent, just the fact that the parks are packed is not an indication that the economy is good.

I applied for a new credit card yesterday. I got approved but they would only transfer credit from my other card with them. I’m a credit card churner and I’ve never had that happen before. Credit may be tightening. Not good for economy that lives off debt.

 

[RamblingMad]

I applied for a new credit card yesterday. I got approved but they would only transfer credit from my other card with them. I’m a credit card churner and I’ve never had that happen before. Credit may be tightening. Not good for economy that lives off debt.

Retail sales only up 2.9% yoy. On a real basis that’s negative.

 

[fortwildernessishome]

, when most houses sell for all cash in the $2M range.

Just curious, how would you know that 2M houses sell for cash in your area?

 

[DLgal]

Just curious, how would you know that 2M houses sell for cash in your area?

I have several real estate friends. This is the trend here. We have a lot of foreign cash buyers (from China) in this area. The main homebuilder in my city literally advertises in China. I really wish this wasn't allowed to happen. I firmly believe that only US Citizens should be able to purchase single family homes.