But housing values are up, leading many to ask if it’s a better investment then equities.
We are still waiting for final numbers for last year but tight supplies of homes for sale is pushing prices ever higher, with annual gains soaring in most major markets. Home values in October were 5.2 percent higher than a year ago according to the S&P/Case-Shiller Home Price Index. Price gains were even larger in the nation's top 20 housing markets, at 5.5 percent over last year.
Plus, there were more sales of both existing and new homes last year. Based on numbers reported through November, new-home sales were up 13 percent and existing-home sales were up 7 percent.
The Collingwood Group Chairman Tim Rood says “The stock market drop is proof buying and investing in U.S. housing is a far better strategy.” He says, “While not every American dreams of owning stock - the majority of them have a bias for living indoors. That bias coupled with the record affordability rate for homeownership are net positives for housing.” Rood adds, “Homeownership is the last legitimate wealth creation opportunity for most Americans.”