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:

The 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.

Source: Keeping Current Matters | The KCM Crew

1123 S PERKINS RD Memphis, TN 38117

Property Site: http://tour.remax-tennessee.com/home/XGCQQD/1123-S-PERKINS-RD-Memphis-TN-10099317

Completely Renovated 3BR/2BA Home in Heart of Colonial Acres~Large Living Room w/ Tons of Natural Light + Spacious Formal Dining Room~Beautiful Kitchen w/ New Cabinets, SS Appliances & Granite Countertops~Spacious Primary Bedroom w/ Renovated En-Suite Full Bath~Two Additional Bedrooms + 2nd Full Renovated Bath~Hardwood Floors Refinished~Fresh Interior & Exterior Paint~New Light Fixtures~2" Cordless Laminate Blinds~Huge Fenced in Backyard w/Patio & New Sod~Detached Garage/Storage~AND MORE!!

Bedrooms: 3

Bathrooms: 2

Square feet: 1,200

Price: $235,000

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See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10099317

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7831 SUNNY TRAIL DR Bartlett, TN 38135

Property Site: http://tour.remax-tennessee.com/home/FZE76G/7831-SUNNY-TRAIL-DR-Bartlett-TN-10099305

Beautiful 4BR/3.5BA Home on Lake in Quiet Bartlett Neighborhood~Two Story Foyer Welcomes You In~Formal Dining Room w/Lots of Natural Light~Huge Great Room w/Large Windows Overlooking the Lake~Open Eat-In Kitchen w/Tons of Cabinet Space, Island, Double Ovens & Cooktop~Hearth Room Off Kitchen w/Fireplace~Primary Bedroom Suite Down w/2 Walk-In Closets + Luxury Bath~Half Bath + Spacious Laundry Room Also Down~Three Bedrooms + 2 Baths + Bonus Room & Craft Room Up~Gorgeous Water Views~AND MORE!!

Bedrooms: 4

Bathrooms: 4

Square feet: 3,000

Price: $399,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6859180 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10099305

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3296 RICHLAND LAKE CV Bartlett, TN 38133

Property Site: http://tour.remax-tennessee.com/home/RFFCFE/3296-RICHLAND-LAKE-CV-Bartlett-TN-10098789

Gorgeous, Like New 4BR/3BA Home in Quiet Bartlett Cove~Formal Dining Room w/Lots of Natural Light~Huge Open Space Featuring Great Room w/Fireplace & Eat-In Kitchen~Stunning Kitchen w/Large Island, Custom Cabinets, SS Appliances & Granite Countertops + Butlers Pantry~Beautiful Hardwood Floors & High Ceilings~Primary Bedroom Suite Down w/Walk-In Closet & Luxurious Bathroom~2nd Bedroom + Full Bath Down~2 Bedrooms + Full Bath Up~Amazing Backyard w/Covered Patio is Perfect Space to Relax~AND MORE!!

Bedrooms: 4

Bathrooms: 3

Square feet: 2,200

Price: $315,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6843145 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10098789

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Americans Find the Nonfinancial Benefits of Homeownership Most Valuable

 

Homeownership is a foundational part of the American Dream. As we look back on more than a year of sheltering in our homes, having a place of our own is more important than ever. While financial benefits are always a key aspect of homeownership, today, homeowners rank the nonfinancial and personal benefits with even higher value.

Recently, two national surveys revealed the reasons homeownership is such an important part of life. The top three personal benefits of homeownership noted by respondents in Unison’s 2021 report on The State of the American Homeowner are:

• 91% – feel secure, stable, or successful owning a home
• 70% – feel emotionally attached to the homes that have kept them safe over the past year
• 51% – call homeownership a “key part of their life”

These sentiments were supported by the most recent National Housing Survey from Fannie Mae, which also shows that the top three reasons Americans value homeownership have nothing to do with money. Those surveyed were given a list of feelings and accomplishments that are associated with or impacted by where we live. They were then asked, “To achieve this, are you better off owning or better off renting?” Here are the top three points from the list that respondents said homeownership could help them achieve:

• 91% – control over what you do with your living space
• 90% – a sense of privacy and security
• 89% – a good place for your family to raise your children

Other nonfinancial advantages of homeownership revealed by the survey include feeling engaged in a community, having flexibility in future decisions, and experiencing less stress.

Bottom Line

Financial and nonfinancial benefits are a key component to the value of homeownership, but the nonfinancial side is most valued after a year full of pandemic-driven challenges. Contact a real estate professional today if you’re ready to take the first steps toward becoming a homeowner.

Source: Keeping Current Matters | The KCM Crew 05032021

233 RICHBRIAR ST Memphis, TN 38120

Property Site: http://tour.remax-tennessee.com/home/C7QN8W/233-RICHBRIAR-ST-Memphis-TN-10098320

Super Cute One Story 4BR/3BA Home in Quiet Neighborhood~Formal Dining Room + Formal Living Room w/Lots of Natural Light~Large Great Room w/Built-In Shelves~Updated Eat-In Kitchen w/New Cabinets, Granite Countertops & SS Appliances~Wonderful Primary Bedroom w/Full En-Suite Bath~Huge Second Primary BR w/Full Bath & Private Entry~Two Additional Bedrooms + Full Bath~Lovely Hardwood Floors Throughout~Fresh Interior Paint~Huge Backyard Space w/2 Car Carport & Extra Parking Pad w/Gated Entry~AND MORE!!

Bedrooms: 4

Bathrooms: 3

Square feet: 2,200

Price: $335,000

For more information about this property, please contact Jennifer Carstensen at 901-685-6000 or jennifer@livelovememphis.com. You can also text 6831423 to 67299 (Message and Data Rates May Apply, see terms and privacy policy).

See more listings at: jcarstensen.remax-tennessee.com

MLS ID: 10098320

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Is Home Price Appreciation Accelerating Again?

 

At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months. However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

This has forced those who made appreciation forecasts this past January to amend those projections. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all adjusted their numbers upward after reviewing first quarter housing data. Here are their original forecasts and their newly updated projections:

Even with the increases, the updated projections still don’t reach the above 10% appreciation levels of 2020. However, a jump in the average projection from 5.3% to 7.7% after just one quarter is substantial. Demand will remain strong, so future appreciation will be determined by how quickly listing inventory makes its way to the market.

Bottom Line

Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe that won’t be the case. Home values will remain strong throughout the year.

Source: Keeping Current Matters | The KCM Crew 04292021