For the first time in three years of Bankrate’s survey on financial investments, Americans named real estate as the most popular investment option. In this article, Bankrate highlights the results of its national telephone survey that was conducted earlier this month.
The crash in housing prices that walloped the economy over the past decade no longer seems to haunt Americans as it did during the recession. For the first time in three years, real estate was the most popular investment option in a survey that accompanied Bankrate’s Financial Security Index.
When asked what kind of investments made the most sense, 27% said they’d invest in property if they had a pool of spare cash. CDs and other cash investments, the top answer in Bankrate’s 2013 and 2014 surveys, came in second at 23%.
Americans are likely encouraged by recent indicators showing the housing market’s strength. In May, sales of new homes grew 2.2% to the highest level in seven years, and April’s figures increased 8.1% from March, according to the U.S. Census. Buoyed by demand for single-family homes, existing-home sales also rose 5.1% in May, recording a 9.2% year-over-year gain, according to the National Association of Realtors.
Home values are also rising. S&P/Case-Shiller’s latest measurement of national home prices shows a 4.2% year-over-year gain from March to April. Since February 2012, when the index bottomed, prices have increased 26.8%.
