Industry News

Housing market overvalued, investors say

But majority still see real estate as better investment than stocks

Investors overwhelmingly believe the U.S. housing market is overvalued, but still see real estate as a better investment than the stock market, according to a survey released this week by financial services organization TIAA CREF. "There is a notable disconnect between the run-up in housing market values investors are seeing as homeowners, and their desire to participate in an attractive asset class like real estate over stocks and bonds," said Tom Garbutt, TIAA-CREF managing director and head of real estate. According to the study, conducted by Roper Public Affairs and Media for TIAA-CREF, nearly three out of four investors, or 73 percent, believe housing in the U.S. is overvalued, while just one in five, or 19 percent, believe it is valued appropriately. Middle-class investors, which comprise those with household incomes from $25,000 to $74,999, are particularly likely to see U.S. housing as overvalued. Despite their belief that the housing market is overvalued, investors still ove...