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Invest in Real Estate or Stocks? The TRUTH is out.

Americans believe buying a home is definitely a better investment than buying stocks, cited the Federal Reserve Bank of New York as reported by the Liberty Street Economics blog. Last week, 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.”

Is real estate really a secure investment right now?

Some question American confidence in real estate as a good long-term investment right now. They fear that the build-up in home values may be mirroring what happened right before the housing crash a little more than a decade ago. This simply, is not the case. According to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable. Morgan Stanley went so far as to state 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.”

Bottom Line

As a local real estate partner with one of the most conservative experts on money and investing, Dave Ramsey, I am well-versed in the ideals of building wealth and managing debt, especially as it relates to housing costs and expenses. I stand firmly with America’s belief that homeownership's long-term investment value has been, and will always be, very strong. If you are still considering trading up, right-sizing, down-sizing or investing in real estate, now is still an incredible time to do so.


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