Why Invest in Real Estate?
Dennis Steinbach, Broker for EQ1 Real Estate
The latest economic survey from Gallup revealed 30% of Americans named real estate 'the most favored long-term investment', a position held since 2013. More than one-third of Americans take it a step further by claiming real estate as 'THE top investment', a title held since 2016. What about stocks and mutual funds? They are owned by 56% of the population, but only 21% feel they are the best long-term investment, putting them in second place, way behind real estate. Experts agree that buying real estate is one of the best investments an American can make. Here are some reasons why:
Homeowners got $2 trillion richer during the first quarter of this year. Homeowners with mortgages saw their equity jump an amazing 20% in the first quarter of this year over a year earlier. This represents a collective equity gain of close to $2 trillion. Those with mortgages, about 62% of all properties, saw a per borrower average gain of around $34,000.
The tremendous gain is thanks to increasing home prices, which according to Corelogic, were up over 11% in March from a year earlier, and prices rose even stronger in April. Homeowner equity has more than doubled over the past decade and become a vital buffer for many weathering the pandemic. These gains have become an important financial tool and boosted consumer confidence in the US house market.
The Case-Shiller Home Price Index, which is considered the 'gold standard' for appreciation, showed home prices rose 13.2% year over year in March 2021. This is a 15-year high for appreciation.
Locally, the current median sales price for a single-family home in May was $1,650,000. In June, it rose to $1,800,000. For condo/townhome, the median sales price in March was $888,500, rising to $910,000 in June.
If you are thinking of selling and want to find out your home's value, connect with our team at 408-912-7670, or email 'home value' to firstname.lastname@example.org