In a time when jobs are steadily on the downward spiral, and homes are being foreclosed by the minute, it’s a remarkable conundrum that the number of millionaires in the United States is actually on the rise. The real estate market crash devastated the millionaire population, but now that mortgages are up, more former magnates can once again hold the title ‘millionaire’.
The great stock market crash of 2008 decimated the portfolios of many a wealthy mogul. According to Chicago-based Spectrem Group, a wealth-research firm, millionaire lost a third of their wealth as a result of the credit crunch. The wealth measurements do not include primary real-estate holdings, but secondary houses and other properties are counted.
For those in the middle and upper echelons of millionaire-dom, real estate actually accounts for a smaller share of net worth. The overwhelming majority of millionaires lost their wealth in the stock market. This has caused a noticeable disturbance in lifestyle choices and retirement options.
Witness the celebrity real estate sector. Celebs like Sharon Stone and Scarlett Johansson have been forced to sell their homes for considerably less than they bought them.
Fortunately, for the fortunate, the stock market rally couple with cleaner mortgage and real estate market has brought the wealth back. Spectrem studies reveal that household worth $1 million leapt to 16 percent in 2009. 7.8 million household are currently millionaire households. This is a considerable change to the 27 percent millionaire shrinkage in 2008.
Tuesday marked the one-year anniversary of the day the stock market began to upswing from the 57 percent downfall it took during the height of the crash. Since March 9, 2009, the stock market has rallied 69 percent. The real estate market is making a comeback as well with mortgage applications up for the second week in a row.
Spectrem also noted that the number of ultra high net worth households, or those with a net worth of $5 million or more have increased by 17 percent. Households with a net worth of $500,000 have followed suit with a 12 percent jump. However, at the peak of the market in 2007, there were a total of 9.2 million millionaire households.
With the stock market soaring to new heights and the real estate sector increasingly on the uptick, wealth will continue to grow. For most Americans, however, hardship remains the name of the game. Indeed, the old cliche, the rich keep getting richer, never fails.
Written by Lani Shadduck
HULIQ.com
Source:Chicagotribune.com
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