
Where to Invest in a Difficult Economy?
Stocks? Gold? Bonds? Real estate? This is question often tossed about in a troubled economy. As in, where does one put one’s money inn turbulent times?
While we’re not economists, we’ve got a few ideas and the data to back them up. And while you may not be surprised that we’re suggesting some investments in your home, bear with us. You may just agree.
A Hotter Housing Market
For starters, despite languishing in single-digit territory for the past few years, the sales rate for existing homes has climbed into double-digit territory and there are signs it will climb higher next year. In fact, the National Association of Realtors (NAR) predicts existing-home sales will rise 7 to 12% this year and perhaps as much as 15% next year.
Which means that getting those renovations done this year will have you ready for next year’s sales cycle.
A Tight Market
Although new home inventory is climbing, that increase isn’t nearly enough to meet a booming demand for homes. An investment in your home – particularly with strong ROI – almost certainly represents a better investment than a volatile market.
Demanding Buyers
Despite that hot housing market and limited inventory, higher interest rates mean prospective buyers aren’t willing to settle on outdated homes or those in need of serious work. And if they do make an offer, it’s going to be much lower than the seller expects. In fact, NAR says 46% of home buyers are less willing to compromise on a purchase.
Conversely, homes that are updated and in sold working condition are commanding very attractive prices for their owners. The start of 2025 saw a 4.8% increase in home sales prices.
In short, if you aren’t sure where to put your money and your home needs a renovation or remodeling, this may be a good time to invest in your own home. Worst-case scenario: you end up in the home you want!
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