Compared to other investments, real estate still performed well in the last decade despite loss of value in recent years. In a report recently released by RadarLogic, the housing market in the past decade, in spite of all of recent troubles, has still performed better in terms of an investment than other typical investments such as the stock market.
Highlights from the report are as follows:
- The RPX Composite Price (RadarLogics home price index which tracks home prices in 25 major metropolitan areas) increased 56 percent from January 2000 to July 2011.
- The Dow Jones Industrial Averageincreased by just12 percent over the same period…
- …and the S&P 500 declined 8 percent.
Source:Radar Logic,Standard &Poor’s,Dow Jones &Company
- Despite its boom and bust,the housing market performed about as well as the overall economy from 2000 to 2010.
Source:Radar Logic,U.S. Department of Commerce:Bureau of Economic Analysis
- The housing market did not perform as well as markets for commodities such as gold. Gold prices were strengthened by the global financial crisis as investors fled to what they perceived as a safe investment.
Source:Radar Logic,U.S. Department of Labor:Bureau of Labor