USHUD has followed the real estate market, the foreclosure market as well as the stock market in order to keep up with trends and waves in the markets. The real estate market has beaten the economy by a substantial margin over the last couple of years. Leading the economy was expected by economist’s world round but what was not expected is the length of time that it has taken between the real estate market recovering and the economies slow growth towards catching up over the same period. Historically real estate is an economic driver that is quickly followed by the economy but the recent market conditions have lagged behind real estate market ever since the collapse in 2007.
The stock market is seeing its highest numbers in history but the economy is not feeling it in the way that it has in every recovery recorded. This, USHUD believes is why so many people are investing their money in the real estate market and not the stock market even with the incredible growth in the stock market. The reason USHUD believes this is the case is the fact that many people lost their liquidity during the economic collapse while much smaller number of people lost their homes. The foreclosure flood caused millions of people to lose their homes but far more lost their life savings in the stock market and that is a quantifiable figure that touches people far more personally than their homes depreciating for a period of time.
Losing money is not the reason buy stocks. Making money is normally not the reason people buy homes so the reasoning is substantially different for investing in either market. When we lose money on something that we have no control over such as a stock we are left feeling helpless while losing equity for a period of time still allows us to maintain our home and pay down the mortgage. These two markets are therefore polar opposites as judged by most Americans.