The graph from the Federal Reserve (below) shows the best investment over time is real estate.

From the 1960’s through 2024, the price of homes continue to increase.  A few dips and blips but for the most part, homes have continuously gained value.

For example, buyers who purchased in the 1990s are (mostly) living in their largest investment. If they take care of the property and update it over time, it sells for a great price. The one caveat about considering your home as an investment is purchasing what you can afford!  Many potential buyers never consider the cost of owning a home.  Paying for repairs, replacement of appliances and HVAC, and ever-increasing property taxes can be overwhelming and very expensive.

Look at what happened to real estate sale prices during COVID-19.  The rate homes sold and the skyrocketing prices didn’t seem to notice the pandemic.

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Ending up house-poor is not a good investment strategy.  Talk to your financial advisor, the loan officer and your Realtor® in order to get a valid idea of costs involved.

Buying a home or condo is a great investment for the future!  However, don’t underestimate the costs while you live in and enjoy your investment.