Real Estate vs. the Housing Market in the Albuquerque area

by | Feb 4, 2021 | Podcast, Radio | 0 comments

Tego Venturi:  Let’s talk about this whole thing real estate versus the housing market.

Tracy Venturi:  So this week. Many of you have probably seen the headlines with the whole issue in the stock market where GameStop and other a few other stocks were manipulated to harm some hedge funds and people with short options in short stocks, very very big hedge funds and some big investors, and you know it’s interesting to me because I’m watching that going, I really know real estate. I know the value of real estate and I know people need to live somewhere.

I know the stock market a bit, I know how options work and I follow when I invest in the market, but it just really hit me how volatile it can be when you’re investing in the stock market, versus, real estate, you know, what an opportunity people go well you know the markets gone up X percent in the last year, do I really want to be a home buyer, they’re like well. But if you look at the historical 30 years back 50 years back, housing is very stable compared to the stock market.

Tego Venturi:  Even when you’re taking into account the period from 2008, you actually take the light out. It’s still 3% a year three 4% a year. And that was, if you look at like the chart for the stock or the S & P, right. All these ups and all these ups and downs through, through the years, obviously again over time. But the housing market is much more steady, except for that anomally, which I don’t, I don’t see ever happening again. A lot of things, correct things cause back. Never say never.

Tracy Venturi:  The thing is, you know, we watch CNBC in the morning we see they always have some analysts from some big company right say “hey we’re upgrading this stock” although they don’t do that so much there, but they say, you know, so and so the stock got upgraded today by somebody. And we know that a lot of the across the country, people are calling people saying “hey this stocks been upgraded you should get in.” Right? And we know that it’s all can be manipulated very quickly. The housing market really isn’t similar to that it just seemed like such a pressing story this week with the whole Reddit thing GameStop and what happened. It just made me go “why I sure am glad I’ve got a lot of things invested in real estate.” You know we’re real estate investors as well as we own a home and we live in a home. And it’s done well for wealth building over time

Tego Venturi:  As we all say Tracy it’s diversified right, you know, if you’re in the stock market. Obviously, bonds, stocks and mutual funds, right but again it’s it’s, I think part of a good long term strategies is diversifying into other types of assets, right, real estate, like gold, so many other things but, you know, educate yourself.