In 2007 when the housing bubble burst, many Americans felt as if they were going through a bad breakup. Real estate had been a relatively stable option for investment throughout the 1990s, however when the bottom fell out things got ugly very fast. In the ailing economy, many simply lost faith in real estate.
A recent Gallup poll is stating that this love is starting to rekindle once again. As signs are showing positive growth for the real estate market, Americans are now thinking of real estate as the “best” long-term investment. These results are from Gallup’s April 3-6 Economy and Personal Finances poll that asked Americans to rank real estate, stocks and mutual funds, gold savings accounts and CDs or bonds as the best option for long-term investments.
This marks a shift in American’s confidence in the real estate market. When Gallup last took this poll in 2011, in the midst of the housing crisis, Americans ranked gold as the most popular long-term investment.
Economists were somewhat concerned about real estate as the “best” investment as homes tend to appreciate rather slowly and offer little return when compared with other investment options. Homes tend to appreciate only at a rate of 0.2 percent per year, while stocks can have an annual return of 6.32 percent and gold (despite its crash in price) averages roughly a 4.12 percent return per year.
When broken down into income groups, wealthy Americans were more likely to pick stocks as the best investment. Economists for Gallup predicted that this is likely because upper-income Americans become more familiar with these types of investments as a result of the disposable income required to actually participate in this type of investing.
Santa Monica Becoming Hot Bed of Real Estate Investment
While economists are more concerned about the amount of return on capital as a way of calculating the “best” form of investment, it seems Americans are not as worried with money as they are with finding a good place to live. A great example of this is in Santa Monica, where million-dollar properties are flying off the shelves.
Prices for single family homes in Santa Monica have only recently leveled off somewhat, withe the general trend continuing upward. According to Altos Research, a California-based real estate analytics company, the median single family home value is well into the millions at $2,807,577.
The Market Action Index, a value unique to Altos that measures from a neutral point of 30 if trends are favoring high toward the seller or low toward the buyer, is resting comfortably in seller’s territory at 46.28. This value tells market watchers that the demand for exquisite property in a great community like Santa Monica is very high.
As Americans are rekindling with that old flame called real estate, beautiful communities like Santa Monica offer many more reasons to take the plunge.
Are you looking to fall in love with a luxury property in Santa Monica? Please contact us today, our team of property experts would love to help you find that special home.
Check out these available homes for sale in Santa Monica between $2.5 million and $3.5 million
$3,500,000 : 1704 WASHINGTON Avenue, Santa Monica0 beds, 0 bath
$3,500,000 : 2521 EUCLID Street, Santa Monica0 beds, 0 bath
$3,495,000 : 2601 24TH Street, Santa Monica5 beds, 6 baths
$3,495,000 : 710 18TH Street, Santa Monica3 beds, 2 baths
$3,450,000 : 1927 Cloverfield Boulevard, Santa Monica0 beds, 0 bath
See all City of Santa Monica Luxury Homes For Sale.
(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.