One recurring question that keeps being asked to us is: “Is it a good time to invest in real estate?” Let’s delve into the research I’ve conducted on the subject of real estate investing. Is real estate an attractive investment or a financial burden in today’s market?
Historically, real estate has proven to be a prudent investment rather than a liability. In a typical market, properties tend to appreciate at an average annual rate of 3.8% over a 10-year period. Over a 25-year span, the average appreciation rate stands at 3.9%.
However, the current situation presents some puzzling dynamics. As of June 2022, real estate has experienced an exceptional 2% month over month and 14.5% annual appreciation, which is far from the norm. At this juncture, the market has shifted into a decelerated pace, with homes appreciating at a slower, albeit still impressive, rate of around 10-11%, surpassing the usual standards.
National experts concur that home prices are unlikely to depreciate. So, to address the burning question, “Is real estate a wise investment at this moment?” The answer remains a resounding yes!
