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Real estate or stocks, revisited

Looks like real estate beats out stocks in the long run.
Looks like real estate beats out stocks in the long run.
Courtesy Paragon Real Estate

Last week, I sent out a comparison of two-year returns on Bay Area houses, gold, Apple stock, Index funds and bank CDs. The analyses came from our Market Analyst and were posted on our blog.

Since then, we've gotten a bit of flak for using such a short time horizon. "How about some charts that compare these investments over the long haul?" people asked. "How does real estate stack up then?"

The answer of course depends on when your "long haul" starts and ends. On this go-around, we used a 20-year time horizon. Here's how it might look were you to invest $100,000 in 1994.

This simplified, good faith illustration uses February 2014 as the home sell date because that is the last published Case-Shiller Index (as of 5/20/14). April 2014 was chosen for the stock sale date because that was last published update of the DQYDJ S&P 500 calculator.

1994 was an excellent time to put money into the stock market. But it was an even better time to purchase a San Francisco Bay Area home. Want more details? Get in contact.

Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com