Despite massive loss of value over the last few years, the U.S. housing market has outperformed the stock market since 2000.
A report released recently by RadarLogic showed that, over the past decade, the housing market, in spite of all of it’s recent troubles, has still performed better in terms of an investment than other typical investments such as the stock market.
Highlights from the report:
- The RPX Composite Price (RadarLogics home price index which tracks home prices in 25 major metropolitan areas) increased 56 percent from January 2000 to July 2011.
- The Dow Jones Industrial Averageincreased by just12 percent over the same period…
- …and the S&P 500 declined 8 percent.
- Despite its boom and bust, the housing market performed about as well as the overall economy from 2000 to 2010.
- The housing market did not perform as well as markets for commodities such as gold. Gold prices were strengthened by the global financial crisis as investors fled to what they perceived as a safe investment.
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