Real Estate - a Better Investment Than Stocks or Gold?
In April of this year the Federal Reserve Bank of New York reported that Americans believe buying a home is definitely or probably a better investment compared to buying stocks. A Gallup Poll reaffirmed those findings.
In an article on the current real estate market, Gallup reports:
“Gallup usually finds that Americans regard real estate as the best long-term investment among several options -- seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.”
Here’s the breakdown:
The article goes on to say:
“The 41% choosing real estate is the highest selecting any of the five investment options in the 11 years Gallup has asked this question.”
Is real estate a secure investment right now?
With a strong and sustainable current real estate market, according to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, there is no need to think that increase in home values is mirroring the housing crash from over a decade ago.
As Morgan Stanley explains to their clients in a recent Thoughts on the Market podcast:
“Unlike 15 years ago, the euphoria in today's home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”
The Bottom Line
It is true that the long-term investment value of homeownership is very strong. If you'd like to invest in a home fill out the form below and the Faber team will be in contact!
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Americans See Real Estate as a Better Investment Than Stocks or Gold, first appeared on the
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