Real Estate Still the Best Investment?

Impending Real Estate Doom? Not if most AMericans can have their way. Hopefully perception is reality as Americans are confident their homes are retaining, even gaining, value, according to a nationwide telephone survey conducted this month by The Boston Consulting Group (BCG). In fact, Americans are nearly as optimistic now about the rising value of their homes as they were a year ago, according to the research.

According to the survey:

  • 55% of Americans say their home would sell for more money now than it would have a year ago. (Last summer, 59% of American homeowners felt that way.)
  • 85% of Americans believe their house will be worth more five years from now than it is today.
  • Nearly three-quarters (74%) of homeowners say they're confident they could sell their home within the next six months at a price they think it's worth.
  • The majority - 63% - of Americans think real estate is a good or excellent investment.
  • 76% of Americans say the current real estate market has no impact on how they're spending now. (However, 16% say they're cutting back because of a perception of lower residential real estate values.)
  • Most home owners - 69% - say they're likely to make renovations or improvements to their home over the next 12 months.
  • 27% of Americans say they're likely to purchase a better home over the next five years.