Stock Market vs. Real Estate Market

Heard any news about the real estate market lately?  It’s for real. Prices are lower. Homes are being foreclosed on. The bad mortgages are affecting everything in the financial markets. But are houses really the worst investment you could have made?

Since 2001, the average price of a single-family home in Nokomis has gone from $170,066 to $222,542. In Longfellow, the average price was $155,226 in 2001 and $192,772 today. And that number doesn’t consider that many foreclosed homes in rotten condition are skewing the numbers lower. In the same time, the Dow ended up right where it started. Simply, your investment did better in the housing market than it did in the stock market.

But that’s not the whole picture. How many memories have you made in your home? How many have you made in the stock market? Remember that time that you had your entire family over to your stock portfolio for Thanksgiving? Remember your first Christmas tree in your stock portfolio? Remember watching the snow fall out the window of your stock portfolio? No matter how cold it got, your stock portfolio always kept you warm at night.

You don’t have to invest in the stock market. But you do have to live somewhere. And in the long run, it’s better to own that home than to rent it. That doesn’t mean you should buy a home you can’t afford, or buy any home before you can afford it. But the dream of owning your own home is still a valid one. But if you treat it like the stock market and think that you can buy and sell at will as you try to build your fortune, your dream will return the favor just as reliably as the stock market. But put your dream of family and love into that home, and it rarely disappoints.

One comment

  1. Karin Rockstad · October 9, 2008

    Amen, brother!!!!!!

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