In today’s uncertain economy, the stock market has been more unpredictable than usual. If you’ve been keeping an eye on your 401(k) or other investments, you may have felt that sinking feeling—the one that comes from watching your balance rise one day and fall the next. This rollercoaster can leave you feeling anxious about your financial future.

But if you’re a homeowner, there’s one thing you need to remember: Real estate is historically much more stable than the stock market.

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) may experience significant ups and downs, home values tend to be far less erratic.

UNDERSTANDING THE DIFFERENCE: STOCKS VS. REAL ESTATE
Stock values can surge or plummet in a matter of days. One day, your portfolio might be soaring; the next, it could be deep in the red. Real estate, however, generally doesn’t experience such extreme fluctuations.

Even during past stock market downturns, home prices have shown resilience. The 2008 housing crisis is a well-known exception, but it was driven by unique factors like subprime mortgages, lax lending practices, and an oversupply of homes—conditions that are not present today.

In many cases, even when the stock market was struggling, home prices continued to rise. Real estate has consistently shown its ability to maintain value even in turbulent financial times.

THE STABILITY OF HOME PRICES
Stock market charts often look like a rollercoaster—sharp peaks and deep valleys. Home prices, on the other hand, follow a much smoother trajectory. They may rise and fall, but they do so more gradually, making them a more stable investment.

WHY HOMEOWNERSHIP IS A SMART LONG-TERM INVESTMENT
If recent stock market swings have you feeling uneasy, take comfort in knowing your home is unlikely to experience the same kind of volatility. That’s why many people view real estate as a safer, more predictable long-term investment.

BOTTOM LINE
In a world of financial uncertainty, your home can be a source of stability. Unlike the stock market, which can be highly unpredictable, real estate has a history of steady, long-term value growth. So even if your stock portfolio feels like a rollercoaster, your home is more likely to be a steady anchor for your financial future.