News Digest: Real estate bounces back as top investment choice in US
May 23, 2023
Real estate is once again emerging as a top investment choice among Americans though in terms of popularity it still stands at a five-year low. A Gallup poll says 34% of the over 1000 respondents felt property was the best place for parking their funds, says a report.
The poll asked them to make the choice between real estate, stocks, bonds, gold and savings accounts. Of course, this is not new as the poll has consistently ranked real estate as among the top choices for eleven consecutive years. However, the report said real estate’s popularity shrank after touching a record high of 45% last year.
The pullback in sentiments aligns with the real estate market’s tough conditions such costlier financing, weak pricing and overall economic instability. Despite surging mortgage rates, U.S. home prices rose 5% in the past year and are up 40% in the pandemic era, says a Zillow report while also noting a 16% loss in total return over the 12 months ending April.