Lately, the eyes of many U.S. investors have been glued to the stock market – which seems to be setting new records almost every day. And, unlike back in 2008, these market movements have been on the positive side.
But, with the stock market’s upward momentum, can there be an effect on the value of real estate – particularly in terms of what your current home may be worth?
The answer to that is, possibly – meaning that when the stock market rises, it can often be the predecessor of a renewed housing market, too. This is because both the stock market and the housing market are interconnected in many ways.
For example, as the value of investors’ stock portfolios go up, other types of investments may be sought out in order to better diversity portfolios. One viable option for investors is to purchase real estate.
Likewise, a healthier investment portfolio may also spur individuals to buy second homes and / or to purchase land with the intent to build a new home later on. Any and all of this activity can have a positive effect on U.S. home values across the board.
In addition, the housing and the stock market are also considered to be leading indicators of economic activity overall. So, when the stock market is up, the value of homes will often follow suit. Of course, the opposite of this can also be true.
Would you like to get a better idea of how much your current home is worth? Give us a call when the time is right, and we will be happy to provide you with a free, no obligation home value analysis. Having this knowledge is oftentimes a key determinant as to whether to remain in your current location, or to list your home for sale and find the new home of your dreams.