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Author: Seth Pfaehler

Americans See Real Estate as a Better Investment Than Stocks or Gold

Last month, in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe buying a home is definitely or probably a better investment than buying stocks. 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.”

Here’s the breakdown:Americans See Real Estate as a Better Investment Than Stocks or Gold | Simplifying The MarketThe 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 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. However, according to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable.

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.”

Bottom Line

America’s belief in the long-term investment value of homeownership has been, is, and will always be, very strong.

Congratulations Anne, Morgan, and Decker!

On the closing of the home of your dreams!

Morgan and Anne put their trust in me to help them thought the process of finding and purchasing their dream home! And what a dream this home is, featuring a freshly remodeled kitchen, primary bedroom suite with updated spa-like bathroom, and a finished walk-out lower level, not to mention the fantastic deck with killer sunset views! This is the perfect home for them, their son and two fur babies!

I was able to help negotiate the deal of a lifetime on this dream oasis before it went on the open market, saving this family the stress of competing offers and crazy contingencies.

Enjoy the sunsets!

Congratulations Nicholas and Taylor!

Congratulations on your new home!

Nicholas and Taylor came to The McGrady Group with the dream of finding a home with acreage where they could raise quail, horses, and alpacas. With some hard work and creativity, we were able compete with multiple offers and emerge the winner! I had to use all my years of experience on this one to write the their “stand-out” offer amongst the tough competition. Creativity with contingencies, while not placing my buyer’s at an increased risk made the difference and just goes to show, you CAN compete in this extremely competitive market without sacrificing our buyer’s best interests!

Oh, and did I mention that they purchased this home for UNDER the asking price?

It’s stories like this that reaffirm why I love what I do!

Your House Could Be the Oasis in an Inventory Desert

Homebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. Many have a sense of urgency to find a home soon since experts forecast a steady rise in both rates and home prices this year and next. As a result, buyer demand greatly outweighs the current housing supply. Here’s how the shortage of houses for sale sets yours up to be the oasis in an inventory desert.

According to the National Association of Realtors (NAR), today’s housing inventory sits at an incredibly low 2.1-month supply, far below the 6-month mark for a neutral market. Inventory of single-family homes a year ago was already very low, and as you can see in the graph below, this year’s levels are even lower:Your House Could Be the Oasis in an Inventory Desert | Simplifying The MarketDue to these market conditions, today’s buyers frequently enter fierce bidding wars while trying to purchase a home. This in turn drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you’re going to sell your house this year.

Bottom Line

In such a hot market, it can feel as though the supply of homes has virtually dried up, leaving buyers to wander in an inventory desert. That’s why there’s never been a better time to sell. To a parched buyer needing to secure a home as soon as possible, your house could be a true oasis.

Stay informed