It seems like every news story about the housing market these days is accompanied by a grain of doubt. Are costs going up or down? Do you think we’re going to crash? When will rates go down? And the news may make you wonder if it’s really a good time to buy a house right now.
One thing that doesn’t get enough attention is this. Building homes has always been a long-term game. So many people still say it’s the best investment you can make, and it’s easy to see why. Just look at the big picture, not the latest clickbait headlines.
Gallup just put out its annual report, which says that for the 12th year in a row, real estate has been voted the best long-term investment. For more than ten years, it has been America’s top choice, beating out stocks, gold, and bonds.
This isn’t new either. Most of the time, real estate claims the top spot. What’s really interesting, though, is this. The news for this year came right after the stock and bond markets had a rough April. It shows that real estate has held its value while other investments have gone up and down wildly. It probably does that because its value rises more steadily and predictably. This is what Gallup says:
“Amid volatility in the stock and bond markets in April, Americans’ preference for stocks as the best long-term investment has declined. Gold has gained in appeal, while real estate remains the top choice for the 12th consecutive year.”
That tells us a lot. We may not be sure what will happen with the economy right now, but real estate can still be a good investment.
Yes, the value of homes is going up, but not as quickly as they used to. But that’s only a short-term view. Prices may stay the same or even go down a little in some markets over the next year. Don’t let that get in the way of seeing the bigger picture.
For a long time, real estate has been going up in value. This is the kind of growth you can count on if you want to keep that house for a long time.
Part of the reason why Americans keep buying homes is because of this, even when the news seems uncertain. Lead Economist at First American, Sam Williamson, says:“A home is more than just a place to live—it’s often a family’s most valuable financial asset and a cornerstone to building long-term wealth.”
Bottom Line
In real estate, you don’t get rich overnight. It’s about getting ahead in the long run. Because of this, don’t think it’s a bad time to buy just because the market is changing.