Real Estate: A Steady Hand in Shaky Times

With the economy riding a wave of uncertainty, it’s no surprise the stock market has been all over the place. If you’ve been watching your investments or 401(k), you’ve probably felt that stomach drop—up one day, down the next. It’s unsettling. But here’s something to remember if you own a home. According to Investopedia:

“Traditionally, stocks have been far more volatile than real estate. That’s not to say that real estate prices aren’t ever volatile—the years around the 2007 to 2008 financial crisis are just one memorable example—but stocks are more prone to large value swings.”

Your home, unlike stocks, is far less likely to take you on a rollercoaster ride. The data is clear: when the stock market dips, home prices don’t always follow. In fact, in many downturns, real estate held strong—or even increased in value. The sharp housing crash of 2008 was the outlier, not the norm, and that was driven by a very specific set of circumstances that simply aren’t in play today.

Stock values have swung dramatically year to year, while home prices have remained much more steady. That consistency is what makes real estate a smart, long-term investment.

If the recent stock market swings have you feeling uneasy, take comfort in knowing your home is one of the more stable assets in your financial picture.

Real estate remains a reliable way to build wealth, even in uncertain times. If you're thinking about buying or selling and want expert guidance, call me, Teresa Hill—I'm here to help you navigate with confidence.

*Information sourced from Investopedia, NYU, & Keeping Current Matters