Stocks are now the top investment choice – survey
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For the first time in four years, American did not favor real estate for their long-term investments, a survey by Bankrate has found.
Only 22% of US adults said real estate was their top choice for investing money they don’t plan to access for more than 10 years. Real estate only ranked third following the stock market, which was favored by 32%, and cash investments, which was the priority for 24%.
Gold, bonds, and bitcoin rounded out the top six, with cryptocurrencies receiving just 2%.
Bankrate noted that the change in long-term investment preferences among Americans comes amidst a slump in real estate. Citing the National Association of Realtors, Bankrate said there was 2.2% year-over-year decline in the sales of previously owned homes in June despite an improving economy. Additionally, prices have risen while new-home constructions and mortgage applications have fallen.
The report also noted that the median existing-home price increased 5.2% over the past 12 months to $276,000 in June, according to NAR data. Meanwhile, home values have increased on a year-over-year basis for 76 straight months.
Bankrate also found that millennials prefer investing money for the long term in cash instruments, with 30% of 18 to 37 year-olds believing cash is the best place to park this money. Meanwhile, the stock market is the top choice of those who are 38 and older, with 37% of the vote.
“For investment horizons of longer than 10 years, the stock market is an entirely appropriate investment. Cash is not, and especially if you’re not seeking out the most competitive returns,” said Greg McBride, Bankrate.com’s chief financial analyst. “Top-yielding, nationally available bank savings accounts and money market deposit accounts can be found with very low minimum deposits, and in some cases, no minimum deposit at all – making these accounts literally available to every American household.”
