Americans’ net worth took a dive in the first quarter

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Yes, you have gotten poorer. And at an accelerated pace.

The net worth of U.S. households fell in the first quarter, the second straight decline, thanks to the double-whammy of sliding home values and the plunge in stock prices, the Federal Reserve said in a report today.

The central bank’s so-called flow of funds report estimated the net worth of American households at $55.97 trillion as of March 31, down $1.7 trillion, or 2.9%, from year-end. That was more than three times the $530-billion drop in the fourth quarter.

Home values fell by $329 billion in the first quarter after a $196-billion drop in the fourth quarter.

But it was the slump in stocks that really hammered Americans’ net worth: The value of their stock accounts and mutual funds sank by $956 billion in the first quarter, after a $598-billion decline in the previous quarter. (The market has recovered quite a bit since, of course.)

Still, at least by the Fed’s estimation, Americans’ overall balance sheet remains quite healthy. Net worth, remember, is assets minus liabilities. Households’ assets, at $70.46 trillion, dwarf their liabilities of $14.49 trillion, which mainly consist of mortgage and consumer debt.

What the totals don’t show, however, is how net worth is distributed. A huge chunk of it is in the hands of the wealthiest people. Down the income chain there have to be plenty of people with negative net worth, especially in light of the housing bust.

Some minor encouraging news in the Fed’s report: Households continued to build up cash savings, which reached $7.59 trillion at the end of March, up from $7.08 trillion at the end of the third quarter.

On the other hand, as every saver knows, you’re earning next-to-nothing on cash accounts now, thanks to the Fed’s interest-rate cuts.