Real Estate Continues To Be the Best Investment [INFOGRAPHIC]
KCM • July 28, 2023
Real Estate Continues To Be the Best Investment [INFOGRAPHIC]
Some Highlights
- According to a recent Gallup poll, real estate has been voted the best long-term investment for 11 years in a row, beating gold, stocks, bonds, and more.
- Owning real estate means more than just having a home—it’s an investment in your future. That’s because it’s typically a stable and secure asset that tends to increase in value as time goes on.
- Let’s connect if you’re ready to buy a home and invest in your future.
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Downsizing Without Debt: How More Homeowners Are Buying Their Next House in Cash If you’ve been thinking about downsizing to lower your expenses, be closer to family, or just make life easier, here's a trend worth paying attention to: More homeowners are buying their next house outright, without taking on a new mortgage. And, if you’ve owned your home for a while, you may be able to do the same. No mortgage. No monthly housing payments. A Record Share of Homeowners Are Mortgage-Free According to analysis from ResiClub of Census data , more than 40% of U.S. owner-occupied homes are mortgage-free – an all-time high for this data series. That means 4 in 10 homeowners own their homes free and clear (see graph below): One big reason for this trend? Demographics. As Baby Boomers age and stay in their homes longer, many have had the time to fully pay off their mortgages. You might be in that group too and not even realize just how much buying power you now have. It’s time to change that. How Downsizers Are Turning Equity into Buying Power As a homeowner, your equity is your biggest advantage in today’s market. If you’re mortgage-free (or close to it), it could give you the power to buy your next home in cash. That means you’d still have no mortgage payment in retirement, plus: Less financial stress as you age More cash flow, if you purchase a less expensive home And it would likely be a faster, simpler transaction Here's how it works. You’d sell your current house and use the proceeds to buy your next house in cash. And while that may sound like something you thought would never be possible for you, it's more realistic than you may think. In the latest survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM), agents reported the share of purchases with all-cash buyers is climbing nationally. And those agents are seeing increases in almost every region of the country (see graph below): For Baby Boomers especially, buying in cash gives you more control over your next chapter. You could buy a smaller, less expensive home and have lower costs, less upkeep, and more flexibility to enjoy what matters most. All while staying debt and stress free. Because downsizing isn't about downgrading your home. It’s about upgrading your quality of life. And that’s something worth exploring. Bottom Line You’ve worked hard for your home. Now it might be time for it to work hard for you. Let’s talk about what your house is worth, and what it could unlock for you today. What would your ideal home look like if you were to downsize right now?
Why 50% of Homes Are Selling for Under Asking and How To Avoid It If your selling strategy still assumes you’ll get multiple offers over asking, it’s officially time for a reset. That frenzied seller’s market is behind us. And here are the numbers to prove it. From Frenzy to “Normal” Right now, about 50% of homes on the market are selling for less than their asking price, according to the latest data from Cotality . But that isn’t necessarily bad news, even if it feels like it. Here’s why. The wild run-up over the last few years was never going to be sustainable. The housing market needed a reset, and data shows that’s exactly what’s happening right now. The graph below uses data from Zillow to show how this trend has shifted over time. Here’s what it tells us: 2018–2019: 50–55% of homes sold under asking. That was the norm. 2021–2022: Only 25% sold under asking, thanks to record-low rates and intense buyer demand. 2025: 50% of homes are selling below asking. That’s much closer to what’s typical in the housing market. Why This Matters If You’re Selling Your House In this return to normal, your pricing strategy is more important than ever . A few years ago, you could overprice your house and still get swarmed with offers. But now, buyers have more options, tighter budgets, and less urgency. Today, your asking price can be make or break for your sale, especially right out of the gate. Your first two weeks on the market are the most important window because that’s when the most serious buyers are paying attention to your listing. Miss your price during that crucial period, and your sale will grind to a halt. Buyers will look right past it. And once your listing sits long enough to go stale, it’ll be hard to sell for your asking price. The Ideal Formula Basically, sellers who cling to outdated expectations end up dealing with price cuts , lower offers, and a longer time just sitting on the market. But homeowners who understand what's happening are still winning, even today. Because that stat about 50% of homes selling for under asking also means the other half are selling at or above – as long as they're priced right from the start. So, how do you set yourself up for success? Do these 3 things: Prep your house. Tackle essential repairs and touch-ups before you list. If your house looks great, you’ll have a better chance to sell at (or over) your asking price. Price strategically from day one. Don’t rely on what nearby homes are listed for. Lean on your agent for what they’ve actually sold for. And price your house based on that. Stay flexible. Be ready to negotiate. And know that it doesn't always have to be on price. It may be on repairs, closing costs, or some other detail. But know this: today’s serious buyers expect some give-and-take . If you want your house to be one that sells for at (or even more than) your asking price, it’s time to plan for the market you’re in today – not the one we saw a few years ago. And that’s exactly why you need a stand-out local agent . Bottom Line You don’t want to fall behind in this market. So, let's talk about what buyers in our area are paying right now. With local expertise and a strategy that gets your house noticed in those crucial first two weeks, anything is possible. Want to know what your house would sell for?
