We are almost back to ‘pre-housing crash’ home values. The inventories of distressed properties (foreclosures & short sales) are shrinking dramatically, the economy is improving, the job numbers are headed in the right direction but the big questions remain: Have Americans regained their confidence in real estate? Is real estate seen as a top investment?
According to a survey conducted by Princeton Survey Research Associates, Americans have put real estate back into first place as the best of all investments, as can be seen by the above graph.
A separate survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is buying a home they consider the financial benefits of homeownership along with the social benefits. The survey mentions things like:
- Paying rent does not make sense
- Homeownership provides a good financial opportunity
- Owning a home helps you build family wealth
- Buying a home is investing in your retirement
- Home equity gives you something to borrow against
So how did homeownership match up against other investments in 2015? Here is a chart that compares its return on investment against precious metals and the stock market last year:
The bottom line of the survey was: not only did homeownership offer all its social benefits. It also was a great investment financially. Real Estate was strong top investment in 2015. All indicators point to real estate as continuing to be seen as a top investment in 2016.
If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!
With over 25 years of experience, our team is ready to help!
Hilton Head Real Estate Partners
Partnering with you every step of the way.