Still A Good Long-Term Investment

We’ve all read so much lately about the decline in the real estate market.  Prices are reported to be down across the country–in many areas by double digits.  But let’s add some historic perspective to the discussion.  Though real estate may not always be a great short-term investment, especially during turbulent economic times; it has usually been a wise long-term investment.   As this chart from “Keeping Current Matters” illustrates, an investment in real estate in 2000 would have out-performed the same investment in the Dow, S&P or Nasdaq over the past decade.

Good news for long-time homeowners!  The Otteau Valuation Group reports that if a New Jersey buyer invested $180,000 in a home in the year 2000, today that home would be worth approximately $311,000–a gain of approximately 52%.