Recent volatility in the stock market raises the age old question of whether the housing market is a better investment than the stock market. While there are plenty of opinions on the matter – and the housing crash and financial crisis highlighted the dangers of putting too much faith in either as an all-in-one investment strategy – recent progress, combined with historic affordability conditions, have made the housing market an attractive buy over the past few years.
Tim Rood, chairman of The Collingwood Group, is among those that think investing in housing is the way to go. He recently told Housing Wire that the stock market drop is proof buying real estate is a far better strategy.
“While not every American dreams of owning stock, the majority of them have a bias for living indoors,” Rood said. “That bias coupled with the record affordability rate for homeownership are net positives for housing. Homeownership is the last legitimate wealth creation opportunity for most Americans.”
And, though affordability has declined, that opportunity is still available. In fact, mortgage rates are still historically low and – though home prices have recovered much of their value – they still rose 5 percent in 2015 and are expected to continue at a similar pace in 2016. That means, this year’s home buyers may be able to find their dream house and a good investment all at once. More here