When the stock market booms, many people rush to move their investment funds to that market. But when stocks tend to fluctuate, they again move their funds to more secure long-term investments

A recent survey by the Gallup Poll shows that the favorite long-term investment is real estate. Here is a portion of the report, as posted by the National Association of Realtors.

"Americans ranked real estate as the best long-term investment, even over stocks and gold, according to a recent Gallup Poll of about 1,000 U.S. adults. Real estate has been the top investment choice for the past two years, and its lead is increasing over four other popular investment choices.

"Thirty-five percent of Americans selected real estate as their top investment choice compared to 22 percent for stocks and mutual funds; 17 percent for gold; 15 percent for savings accounts/CDs; and 7 percent for bonds. By comparison, 34 percent of Americans said gold was their top long-term investment choice in 2011 while 19 percent said real estate."

The report points out how investment preferences relate to the rising value of homes in today's market.

"As the average sale price of new homes in the U.S. increased from $259,300 in August 2011 to $348,900 in February of this year, the percentage of Americans picking real estate as the best long-term investment almost doubled," according to Gallup.

"During approximately the same time span — from August 2011 to April of this year — gold prices plunged from $1,910 to $1,254 per ounce, and the percentage thinking gold would be the best investment was cut in half."

It's interesting to note that men are more likely than women to say gold is the best long-term investment. Women tend to favor savings accounts more so than men.

Those surveyed who are younger than 30 years old were the least likely age group, at 26 percent, to think real estate is the top investing choice. They are most likely to choose savings as the top long-term investment choice.

Q: Are many young families still renting rather than buying a home?

A: The Mortgage Bankers Association's Research Institute for Housing America released a new report on May 3, detailing how household formation by Millennials (persons born during the 1980s and 1990s) and the shift of many potential homeowners to a rental market during the depths of the Great Recession combined to create the current affordability crisis in rental housing.

The report, "Diverted Homeowners, the Rental Crisis, and Foregone Household Formation", analyzes various supply and demand factors that have led to this crisis and provide detailed analysis of the shifts in homeowner and rental demand.

"Demand for rental housing has greatly outstripped supply, rapidly pushing vacancies down and rents up even as incomes fell. The supply is still trying to catch up with the demand," said Lynn Fisher, RIHA's Executive Director and MBA's Vice President for Research and Economics. "In the middle of the last decade, right as the Millennials were anticipated to begin forming their own households and increase demand for rental housing, the supply side of the market stalled due to the turmoil in credit markets."

Q: Why is this called a seller's market for home sellers and buyers?

A: A tight, low inventory of homes is the primary reason. This pushes prices up and limits the number of available homes.

It makes for a very competitive market for many homebuyers, sometimes resulting in the seller being offered a price higher than what he initially asked.

Q: Are mortgage rates about to rise sharply?

A: That's not what the experts say. Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates falling following the Fed's decision to stand pat last week, and other negative economic data. Mortgage rates are now hovering just above their low point for the year.

"The 30-year fixed-rate mortgage averaged 3.61 percent with an average 0.6 point for the week, down from last week when it averaged 3.66 percent. A year ago at this time, the 30-year FRM averaged 3.80 percent.

"15-year FRM this week averaged 2.86 percent with an average 0.5 point, down from last week when it averaged 2.89 percent. A year ago at this time, the 15-year FRM averaged 3.02 percent."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: storyjim@aol.com.

Photo credit: Bernd Thaller