Unless they just discovered toxic radioactive waste underneath your front porch, you're likely to answer this question in the negative.
How about the stock market?
Well, 9 months is enough time to have a baby. In the last 9 months, this baby has gone down a whopping 41.8%. Since reaching 12,968.79 on May 16th, the Dow has plunged to 7,552.60 as of the closing bell yesterday!
Since October 1st, the Dow is down over 30%, and in the last 46 days alone, the DJIA has lost over 16% of its value.
Your home value may have decreased over the past year or two, but I'm certain that unless a meteorite or an errant airplane landed on your home, there's absolutely no way that your home has lost this much value in so short a time.
Where do you want to put your money? The stock market or the real estate market.
It's your choice.
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Brian, Great analogy and a great reason to buy real estate today.
I'm leaning toward mattresses these days.
I suspect that folks in the "out counties" have lost 42% of their home value.
But, shucks, they at least have a place to live.
real estate... well it is REAL.. and it will survive regardless of who is in power or what the economy is doing, up or down, Real Estate is a finite substance. Some stocks are totally worthless because the company goes bellyup (not all are as large as GM and "deserve" a bailout) and the stockholder is left with zilch, zero, nada, nothing. With real estate, if you can keep the bank away, you still have something.
Brian- this is the reality of the market that has caused many investors to do what investors should do- diversify. It's hard to find any single asset that can hold any type of equity.
When you can purchase a home that is selling for less than the cost to build it... well... let's just say that's a value proposition that needs to be explored.
You got any good news Brian? - LOL I am so sickened by it I don't even look anymore. Should have kept all the money under the tomato plant:)
A home and the land it is built on is something you will at least have at the end of the day. It is physical and tangible. Don't remind me about my stocks.
All my pennies ARE under the mattress! But Don't rob my house ! - those pennies are the ones left from my 401K. They wont get you far.
A client called today and said she wants to buy rental property--she sold her stocks last week at a huge loss.
Great Points Brian. Do you mind if I print this out so my husband and I can show everyone we know! :)
Hi Brian -- Very thought provoking post. I wonder though, in some sub-markets, how much have prices gone down? Say, out in the hinterlands of Loudoun or Prince William County, where buyers would buy 500K-1M new homes two years ago to now watch those prices plummet and demand wane, all the while in places like Chevy Chase, prices are holding their own, if I were venture to guess.