Comparing the recent performance of the stock market and the real estate market in Estes Park, Colorado, I would have much rather bought a home or condo in the last 2 years than invested money in the stock market.
Take a look at this comparison between the last two years of the Dow Jones Industrial Average and Median prices of Homes and Condos in Estes Park (trailing 12 month totals). Median Prices for homes and condos have increased 10% over the last 2 years compared to a drop of over 20% for stocks.
This time frame also represents a time when the median prices of the national real estate market dropped considerably. When the national real estate numbers “correct” themselves, Estes Park could be in for another jump in prices.
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Great comparison for your market. I recently wrote an article for our market talking to the market malaise making real estate look more appealing going forward. Unfortunately, our historical curve for the past few years would have looked just as bad as the stock market. Going forward? I think real estate is a solid move for the long term.