Real estate has been Americans’ top pick for “best long-term investment” for the past two years, according to an April 2016 Gallup poll. This year, real estate took a significant lead against stocks, mutual funds, gold, savings, CD’s and bonds with 35% of polled Americans saying that real estate is the better long-term investment.
Furthermore, real estate was the only category in which responses varied minimally when respondents were categorized. Men vs. women, college degree vs. none, age groups, income levels, investors, homeowners vs. renters: all groups thought real estate was the best long-term investment.
The real estate sector saw it’s biggest yearly increase, up four percent. In 2011, the amount of respondents who believed real estate was the best long-term investment was 19 percent.
In 2011, the median existing home sales price was $166,100, according to the National Association of REALTORS. In March of this year, the median home sales price was $222,700, which is the second highest median sales price of the recovery and a 34 percent increase since 2011. There is no doubt why consumers are becoming more confident in homeownership’s ability to deliver a solid long-term investment.
Currently, mortgage rates are near historic lows and creating further incentive for first-time homebuyers to enter the market and move-up buyers to list and upsize. If you’re looking to buy your first home, download our free Mortgage 101 Handbook for everything you need to know about finding and financing your first home.