Which is doing better in value stocks or Boston condos?

Boston Condos for Sale and Apartments for Rent

Which is doing better in value stocks or Boston condos?

With all the uncertainty in the economy, the stock market has been bouncing around more than usual. And if you’ve been watching your 401(k) or investments lately, chances are you’ve felt that pit in your stomach. One day it’s up. The next day, it’s not. And that may make you feel a little worried about your finances.

But here’s the thing you need to remember if you’re a homeowner. According to Investopedia:

“Traditionally, stocks have been far more volatile than real estate. That’s not to say that real estate prices aren’t ever volatile—the years around the 2007 to 2008 financial crisis are just one memorable example—but stocks are more prone to large value swings.”

While your stocks or 401(k) might see a lot of highs and lows, home values are much less volatile.

A Drop in the Stock Market Doesn’t Mean a Crash in Home Prices

Take a look at the graph below. It shows what happened to home prices (the blue bars) during past stock market swings (the orange bars):

Even when the stock market falls more substantially, home prices don’t always come down with it.

Big home price drops like 2008 are the exception, not the rule. But everyone remembers that one. That stock market crash was caused by loose lending practices, subprime mortgages, and an oversupply of homes – a scenario that doesn’t exist today. That’s what made it so different.

In many cases before and after that time, home values actually went up while the stock market went down, showing that real estate is generally much more stable.

This graph shows how stock prices go up and down (the orange line), sometimes by more than 30% in a year. In contrast, home prices (the blue line) change more slowly (see graph below):

 that experiences such dramatic swings.

That’s why real estate can feel more stable and less risky than the stock market.

So, if you’re worried after the recent ups and downs in your stock portfolio, rest assured, your home isn’t likely to experience the same volatility.

And that’s why homeownership is generally viewed as a preferred long-term investment. Even if things feel uncertain right now, homeowners win in the long run.

Boston Condos for Sale and he Bottom Line

Basically, stock values jump around a lot more than home prices do. You can be way up one day and way down the next. Real estate, on the other hand, isn’t usually something

A lot of people are feeling nervous about their finances right now. But there’s one reason for you to feel more secure – your investment in something that’s stood the test of time: real estate.

Peace be with you

Updated: Boston Real Estate Blog 2025

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Which is doing better in value stocks or Boston condos?

While watching the stock market recently may have taken you on a rollercoaster ride, checking the value of your Boston condo should come as welcome relief in this volatile time. If you’re a Boston condo owner, your net worth dramatically increased over the past few years thanks to national rising home prices. And that increase in your wealth came in the form of home equity. Here’s how it works.

What is Boston home equity?

Home equity is the current value of your home minus what you owe on the loan. Because of the Massachusetts booming economy number of Boston condo buyers with high wages looking to make a purchase over the past few years, Boston condo sale prices have appreciated substantially. And while mortgage rates have cooled the market some in recent months, home prices nationally and locally have remained strong.

How much has home equity grown over the last year?

That’s why, according to the latest Homeowner Equity Insights from CoreLogic, the average homeowner equity has grown by $60,000 over the last 12 months. While that’s the national number, even more so in Massachusetts where it ha grown by $65,000 as you can see from the map below from CoreLogic:

How is home equity better than the sock market?

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), helps explain how home equity doing compared to stock market:

“. . . the decline in the stock market has dented overall net wealth. It has fallen by $6 trillion from the first to the second quarter. Only housing wealth has held on, with homeowners’ real estate wealth (home value minus mortgage balance) rising by $1.2 trillion.”

While equity helps increase your overall net worth, it can also help you achieve other goals like buying your next home. When you sell your current house, the equity you built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.

Boston condos for sale and the bottom line

There’s volatility in today’s stock market, but home equity is still incredibly strong. To find out just how much equity you have in your current home, let’s connect.