Wednesday, May 26, 2021
2070 ROLLING VALLEY DR Germantown, TN 38138
8916 RIVER PINE DR Cordova, TN 38016
Tuesday, May 25, 2021
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.”
“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
Monday, May 17, 2021
1123 S PERKINS RD Memphis, TN 38117
7831 SUNNY TRAIL DR Bartlett, TN 38135
Friday, May 7, 2021
3296 RICHLAND LAKE CV Bartlett, TN 38133
Monday, May 3, 2021
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