A new survey shows that more than one in four Americans (27 percent) said real estate was the best investment for any money that they would not need for at least a decade. Cash came in second with 23 percent of investors, only 17 percent said the stock market is their preferred place for long-term money, and just 5 percent said they would put their long-term money in bonds. It is the first time real estate has taken the top spot in the three years Bankrate has been conducting the survey. One certified financial planner notes that the tangible nature of real estate simply offers much more peace of mind than the intangible nature of stocks and bonds. Read the full story
In a similar story and according to the California Association of Realtors, California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, according to the CALIFORNIA ASSOCIATION OF REALTORS®. Also, California REALTORS® responding to C.A.R.’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May.
Making sense of the story
- California pending home sales were up 12.5 percent on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
- Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales Index (PHSI) decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed contracts.
- The month-to-month decrease was slightly below the average May-June loss of 1.9 percent observed in the last seven years.
- A shortage of available homes in the San Francisco Bay Area stifled pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
- Pending home sales in Southern California continued last month’s increase by rising 4 percent in June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.
- The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4 percent of all home sales, remaining near the highest level since late 2007.
- Reversing last month’s decrease, the share of sales closing below asking price increased to 43 percent in June, up from 40 percent in May, but down from the highest point of 55 percent in January 2015.