This week, new home prices in America hit a record high…
The median new home price in the U.S. is now $321,000.
The record high grabs the headlines… but the housing story right now is even more powerful than the headline alone suggests.
[ad#Google Adsense 336×280-IA]For example, new house prices are up 9.7% since last month – the biggest increase since 1992.
And a lot of the numbers in the report from the U.S. Department of Commerce showed the best numbers since the peak of the housing market in 2007-2008.
So… is the housing boom over?
Did you miss out on all the gains?
No, and no…
In short, the case for housing hasn’t changed…
Mortgage rates are around 3.5% – near record lows. And the supply of new homes is low – there are enough to last 4.7 months at current sales levels. So the fundamental case for higher home prices is extremely solid. There’s plenty of upside.
Beyond these housing-specific numbers, the bigger issue is this: Your mattress pays no interest.
Mom and Pop America earn next-to-zero percent interest on their money in the bank…
You can’t retire on zero percent. You need to do something else with your money to live off of it in retirement.
Mom and Pop America need to buy a rental property and earn rent… or they need to buy dividend-paying stocks. Currently, they’re doing neither.
That needs to change… because their mattress isn’t about to start paying them interest.
Mom and Pop haven’t bought a rental property or stocks yet. But they will.
We might be getting in the later innings of this housing boom that has lasted from 2011 to 2016. But there’s still plenty of upside from here. There’s plenty of money to be made in housing and stocks.
Take advantage of it now before it’s too late…
Good investing,
Steve
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Source: Daily Wealth