Beth Helvey July 9, 2025
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.
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):
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 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.
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.
May 1st is the First Official Day of Turtle Nest Season
Seriously, Don't Skip It
Or to Start Your Income Property Journey?
Why You Shouldn’t Believe Every Headline (Or Chart) You See Online
Here’s How Thinking Like a First-Time Buyer Can Help
Cirque St. Armands Beachside has replaced Lido Key’s Holiday Inn—and it’s a major upgrade.
Here’s How To Use It
Trends in Sarasota and Manatee Counties
10 Small Fixes That Can Make or Break the Sale of Your Home
Factors That Can Affect Your Preapproval
It Is in Sarasota!
And How to Keep Yours on Track
You May Want to Find Out.
You May Decide to Move
Sarasota just witnessed an extraordinary rainfall event yesterday, one for the record books.
It’s probably part of why it fetched such a high price, setting a new record for tony Longboat Key.
Many homeowners looking to sell feel like they’re stuck between a rock and a hard place right now.
Hurricane season started in Florida a few days ago and runs through November.
I’d love to hear from you! Whether you’re buying, selling, or just exploring your options, I'm here to provide answers, insights, and the support you need. Contact me and start planning your next move.