According to Gallup, Americans think real estate is a better long term investment than gold or stocks. This is a significant increase from just a few years ago where only 19% percent of those polled thought real estate was the best long term investment and 34% thought gold would give them the best bang for their long term buck:
Experts believe that the preference is based on the steady growth of the property market. Home prices have been rising across the country. The U.S consumer index spiked to a six-year high in March as prices inched up 13.2 percent in January on a year over year basis.
"The steady pace of home price gains should help further support the housing market recovery during the year," Gennadiy Goldberg, U.S. strategist at TD Securities wrote in a research note, reports MarketWatch.
Experts also predict prices to rise by 6 to 8 percent this year. Record low mortgage rates have fuelled faster home sales. However, tight supply has become a problem.
While some pockets of Michigan are still struggling with stagnant or lagging home prices, Traverse City is seeing increases in home prices that are consistent with the 6-8 percent rate referenced in the article. If you're thinking about listing your house, now is a great time.