Dear Monica: The stock market has fluctuated so much lately that I no longer feel as committed to it as I once was. Do you think real estate would be a better investment going forward? Ellen G.

 

Dear Ellen: I can’t comment on what the financial market will do now or in the future. No one knows for sure although judging by history, the markets are due for some kind of “correction” in the foreseeable future.

 

But considering the way Bay Area companies have been growing and expanding, it’s reasonable to predict that that good residential real estate will be in demand for a long time, making it a good investment. Real estate prices are down from the highs of last spring and buyers have more leverage now than a year ago. It’s true that interest rates are rising making housing more expensive, but it is a good time to buy and hold for the long term.

 

Consult your financial advisor to know if real estate makes sense for you but you can be confident that the future for real estate in our area is bright.