The real estate market has picked up "bigly" in recent months. Properties that sat unsold are now going into contract, and even though official data has yet to catch up, I have an idea of what's going on. Markets are rarely driven by rational behavior. Sentiment plays a huge role, and right now, there's an abundance of irrationality and emotion. This is driving more people toward real estate because while stocks remain volatile, real estate feels like a more stable and appealing option. It feels good coming home, knowing that not much has changed in the living room since you left in the morning. Real estate isn't always the highest-yielding investment, but it offers something stocks can't—tangibility. People trust assets they can see and touch, and in uncertain times, that sense of security matters.
History Repeats Itself
This isn't a new pattern. Following the 2016 U.S. presidential election, similar volatility in financial markets pushed investors toward real estate. That increased demand helped drive up home prices and contributed to a tighter housing supply. Now, we're seeing the same forces at play. Concerns over trade policies, government gridlock, and economic uncertainty are making traditional investments feel riskier. Real estate, by contrast, offers stability and long-term value, making it an attractive alternative for those looking to protect their wealth and simply feel better about where their money is housed.
The Emotional and Practical Appeal of Homeownership
Beyond the financial side, real estate provides a sense of control and permanence that other investments can't. A home isn't just an asset—it's a place to live, a hedge against inflation, and a long-term investment that can weather market fluctuations. When other parts of the economy feel unpredictable, owning property offers financial and psychological stability.
If history is any indication, as long as this uncertainty persists (and I fully expect it will), the real estate market will continue to be a preferred choice for anyone who wants stability—which is bad news for buyers and good news for sellers (unless they have to buy something after they sell).
But, like any good sequel, I expect the ending to be unpredictable, and how this chapter ends is still being written.....
Let's do this.
Shaun