The housing market is slowly getting healthier â which could mean good things are coming in the future... [Stansberry Research Logo]
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[DailyWealth] The Housing Market Is Showing Signs of a Reversal By Brett Eversole --------------------------------------------------------------- There haven't been many times in my career that the consensus was so clearly dead wrong... When you find a contrarian opportunity, you'll usually feel some doubt. After all, you're betting against what most investors expect. It's never a sure thing that you're right and the market is wrong. But when it came to the U.S. housing market, the opportunity was obvious. Everyone thought higher mortgage rates would crash the housing market. But I saw the exact opposite... Rising rates and falling affordability were irrelevant. Instead, we had a systemic undersupply of homes. And that meant prices couldn't crash. This was the contrarian view over the past few years... And it turned out to be correct. That didn't mean the housing market was healthy, though. Except for prices, the state of U.S. housing was a mess in every way. But now, some of those deeper issues may be improving. And that means we'll likely see more good news for housing in the coming years. --------------------------------------------------------------- Recommended Links: [A Former Goldman Sachs Trader Reveals the Secret to Adding an Extra $21,000 (or More) to Your Income Every Year]( "This is hands down my favorite income strategy and the single most valuable moneymaking secret I discovered during my decade working on Wall Street," says Dr. David Eifrig. He reveals the powerful "instant-cash secret" behind a strategy that's currently on a 208-trade win streak... [right here](.
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--------------------------------------------------------------- Supply and demand made it obvious that housing prices wouldn't crash... A decade of underbuilding had left the market millions of units short of demand. Inventory hit the lowest levels on record. So prices didn't budge – even while home sales collapsed. Of course, that still wasn't a healthy market. It's much better over the long term to have enough homes available for a steady supply of sales. But now, we're finally taking steps toward that healthy environment... That's because existing-home sales are starting to come back. They spiked 9.5% in February. And while they pulled back slightly in March, that was one of the largest one-month jumps on record. Take a look... This move was significant. Existing-home sales collapsed over the past few years... And the lack of inventory kept prices propped up. Now, though, sales are finding a bottom. That's a promising sign for the market's health. A 9.5% jump in just a month is rare, too. We've only seen three other rallies that large... December 2015, June 2020, and July 2020. And those were darn good moments for the housing market. This surge was possible for an important reason: The supply story is finally changing... Slowly but surely, housing inventory is beginning to recover. You can see it in the chart below... The worst time for housing inventory was in early 2022. Fewer than 1 million homes were up for sale back then. We haven't seen a massive increase in homes on the market. But supply has been on a steady move higher in the past two years. Combined, these two signals tell us that housing is beginning to improve. More homes are available for sale... and more homes have been selling recently. That's what we want to see. U.S. housing still has a long way to go. It's still nowhere near the more normal, pre-pandemic market. But as the fundamentals improve, it's setting the stage for a healthier market... And that should support higher prices in the years to come. Good investing, Brett Eversole Further Reading Mega-cap stocks aren't the only ones heading higher today. Most stocks are rallying. We know this because one vital index is hitting multiyear highs. And it tells us the bull run should continue climbing from here... [Read more here](. It's easy to blame Wall Street for the U.S. housing shortage. But the real cause isn't that simple. Here's why legislating the institutional buyers won't be enough to solve the shortage of homes on the market... [Learn more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice. © 2024 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.