The Truth Behind the Housing Market
With yet another month of data, we’re seeing the continued recovery in the housing market. Research firm CoreLogic, Inc. (NYSE/CLGX) just reported that August home prices were up 4.6% from a year ago. This big increase in year-over-year home prices is the largest in six years.
Don’t get me wrong; the housing market will not reach the highs of the past decade anytime soon. But we are clearly off the bottom and that is a crucial development. To buy such a large asset, buyers need to feel somewhat secure that home prices won’t keep dropping. While no one is looking for massive returns, having a stable housing market is extremely important in this economic recovery.
While many believe the housing market is flooded with properties, the opposite is true; we’re seeing shortages of properties driving up home prices, not only in this report, but from the homebuilders themselves. That’s why homebuilder stocks have had massive moves this year, being one of the strongest equities to own. Read More at http://www.investmentcontrarians.com/real-estate/the-truth-behind-the-housing-market/768/