Real Estate vs Stocks

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real estate vs stocks

Where should you invest your money? Real estate or the stock market. The prevailing wisdom from cocktail parties would suggest real estate. But is it right?

The answer is yes – since 2010 Montgomery County real estate sale prices have continued to moderately increase from a low of $398,680 in Feb 2010. Average sold price for September 2015 is $504,686 according to RBIntel statistics. During the same period, the S&P 500 index went from 15.06% in December 2010 to 13.69% in December 2014. This year’s numbers are not available.

Long term, over 25 years we’ll say, the S&P 500 will do better. Pitting home sales against the S&P is an imperfect and less than sophisticated comparison. This is where you need the assistance of a Certified Investor Specialist Agent (CIAS) to help you decide if real estate investing is right for you. I have this certification and can help you to determine if you are ready to invest.

Housing inventory has been decreasing in Montgomery County since its high of 5,968 active listings in June 2008. Montgomery County now sits at 3,518 active listings across single-family, condos and town homes.

While mortgage rates are staying low, this decrease in inventory will drive home prices upward. Buy now before the prices get outside your investment budget.

For more help on real estate investing, check out my “Invest with Confidence” page.

Emcee Arah – “the REALTOR with Architectural Dimension” – is both a Certified Distress Property Expert (CDPE) and a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating today’s residential real estate market.  Contact us online or by phone at (301) 452-5252. And don’t forget to leave your comments on our Facebook page – we’d love to hear from you!

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