At 41 percent, real estate has been named the best long-term investment. This is the eighth year in a row that real estate beat stocks, bonds, and even gold in a survey created by Gallup.
It represents the highest percentage in the survey’s history – up from 35 percent in 2020. In a market that is competitive, unpredictable, and hot around the nation, how does real estate continue to stay at the top of the list for consumers? Long-term benefits range from financial, to personal, to lifestyle, and can impact their overall well-being.
Consumers are well aware of the rising home values. So much so that the housing crash concerns persist. Many expect home prices will continue to rise due to the high demand, chronically low supply, and tight mortgage standards. This could keep some buyers away from or push them out of the market. Still, prospective buyers outweigh the supply of homes available creating today’s unmatched market.
Though demand is expected to last through the busy summer season, and mortgage rates may see some increase along with home prices, experts believe the housing market will remain strong. Newly-built homes are becoming available while builders consistently work to meet demand and new listings should arrive as more American’s become vaccinated and regions continue to lift any restrictions. More supply with higher interest rates can calm the demand and possibly stabilize home prices.
The real estate sector reached a low during the housing crisis in 2008 and has been steadily climbing to a stronger foundation ever since. For the last 11 years of the Gallup survey, eight years have shown that Real Estate is the preferred long-term investment over stocks, gold, and saving accounts or bonds.
Gallup stated, “Americans’ proclivity to say it is a good time to buy a house may also reflect their ideas on the value of homeownership as much as current housing market conditions.” The financial values of homeownership continue to be a motivator in accomplishing the American Dream of owning a home. These days, the value in homeownership lies much more in the number of non-financial benefits owning a home also brings to families.
According to a report conducted this year by Unison on The State of the American Homeowner, many homeowners find more value in the personal benefits they gain such as safety, security, comfort, and control.
• 91% – feel secure, stable, or successful owning a home
• 70% – feel emotionally attached to the homes
• 51% – call homeownership a “key part of their life”
Some have even gone as far as calling their home a personal “sanctuary”. Though 2020 was a year embracing the indoors, Fannie Mae showed that lifestyle benefits ranked above the financial benefits of homeownership:
• 91% – control over what you do with your living space
• 90% – a sense of privacy and security
• 89% – a good place for your family to raise your children
Saving for retirement came in at 88 percent and investment planning ranked at 87 percent. Overall, many consumers believe that homeownership leads to being financially well off and building wealth.
Owning a house represents the largest asset for Americans and continues to bring wealth and growth on multiple levels. If you’re wondering whether or not now is the time to buy a house, act now.
This article is intended to be accurate, but the information is not guaranteed. Please reach out to us directly if you have any specific real estate or mortgage questions or would like help from a local professional. The article was written by Sparkling Marketing, Inc. with information from resources like Gallup, Fannie Mae, and Realtor.com