Great News for High End Real Estate: Ranks of U.S. Millionaires Up 8%, But Still Lower than 2007 Totals

The rich are getting richer. The number of Americans with assets of one million or more expanded by 8 percent, this according to Chicago-based luxury trend researcher Spectrem. There are about 8.4 million American households toting this kind of wealth. Now those figures are still lower than the peak of the boom years, back in the glory days of 2007, when there were 9.2 million millionaires frolicking in the U.S. But here’s what is interesting: the study did not include the value of the primary residence. It did, however, include the second home residence and real estate investments. So that lower number could be attributed to the depressed values of real estate. And I wonder how figuring primary home values would have changed it?

Spectrem’s president says the study proves that Wall Street is faring better financially than Main Street.

We also have an increase in ultra high net worth households, which Spectrem defines as those with $5 million or more of invest able assets. The ultra high net worth families in the U.S. increased 8 percent to a total of 1.1 million in 2010. With household wealth at $56.8 trillion at the end of 2010, millionaires now control about 56 percent of U.S. wealth, this from a March 14 survey by Boston-based Fidelity Investments. Some economists think that’s too high.

Good news for real estate: the folks with money are turning bullish, and this may explain why agents tell me sales are picking up in the higher end markets, $2.5 million and above. Difference — these folks are still bargain shopping. Love them some luxury, but want it at a Filene’s basement price.

Spectrem says millionaires invested more in February for the first time in more than three years, but don’t hold your breath this will continue. The world’s political crisis, oil prices, and now, Japan, will make even these wealthiest investors skiddish. Still, Walper thinks we are trending upwards. Warren Buffet goes on a shopping spree, we all follow.

Millionaires told him they are most likely to invest more in stocks in 2011, and then hold cash.

The uber rich also worry just like we do. They worry about their children and grandchildren’s futures, and experts say they tend to pour resources into investments to protect their offspring. Yes, I am thinking second homes. Plain vanilla regular rich folks, defined as those with  $100,000 to $999,999 in assets, are still treading water. They say their greatest concern is maintaining the status quo of their finances and worrying if they will have enough money for retirement. This is the true bellweather demographic: when they feel comfortable and start spending, we’ll be on our way to the next bubble.