How to Play the Housing Market Squeeze

[Intelligent Income Daily]( Welcome to Intelligent Income Daily, the free daily newsletter from wealth and income expert Brad Thomas. Brad’s experience spans three decades of real estate and stock market booms and busts. Today, he and his team focus exclusively on the safest and most predictable ways to earn sustainable and growing income in any market condition. You can find all past issues [here](. And if you have any questions, please contact Brad and his team [here](mailto:memberservices@widemoatresearch.com). How to Play the Housing Market Squeeze By Brad Thomas, Editor, Intelligent Income Daily Inflation, rising rates, and thin profit margins have squeezed residential homebuilders. Yet new home sales surged in July, hitting a 17-month high. They may get higher still. And I am not the only one who’s taken notice. This year, Warren Buffett invested $814 million in three different homebuilders. A major shift is coming. And here at Intelligent Income Daily, my team and I work hard to keep you informed and up to date on all the latest financial trends. That includes identifying income opportunities that others might overlook. Today, I want to tell you about one such opportunity: a housing market play that might seem like it’s past its prime if you don’t know what I know… Recommended Link [The future of energy? (100,000 years of power)]( [image]( A team of U.S. and Japanese scientists proclaimed this energy technology is “capable of powering the planet for more than 100,000 years.” That's why ex-Goldman Sachs Director Nomi Prins calls this tech "Project Infinity." And while it's not solar, wind, hydro, or nuclear… it is opening up a pure ground-floor profit opportunity for everyday folks right now. [Get the details at Nomi Prins’ special broadcast (click here to get it when it premieres tomorrow, August 26th)]( (By clicking the link, your email address will automatically be added to Nomi’s RSVP list.) -- The Big Squeeze I was a real estate developer for over two decades… right up until the housing crisis hit and ended that career. From booms to busts, I’ve lived ‘em – and learned from past mistakes. And right now, existing inventory is exceptionally low, which means homes are still selling high prices. And longer-term homeowners hold mortgage rates of 3%-4%. While last week interest rates topped 7%, without any signs of cooling off anytime soon. That means current owners have no incentive to sell in order to buy houses with higher interest rates. And thus, the housing market squeeze. In response, builders are ramping up construction. Despite the higher costs of building new homes, they know they’re working with very hot commodities. Sales of newly constructed homes – not existing homes, mind you, but new ones – were up 4.4% to a seasonally adjusted annual rate of 714,000 in July. That’s a 17-month high. It’s also up from June’s 684,000 and 31.5% higher than a year ago. And well-known homebuilders are talking about it. Toll Brothers (TOL), named the #1 Home Builder in one Fortune magazine’s 2023 survey for the eighth year in a row, shared on its earnings call that demand in August has held up better than usual against a backdrop of low existing-home inventory. And PulteGroup (PHM), the third-largest homebuilder in the U.S., is finding that buyers, who often pay cash for a home, now seem to be largely unaffected by this rising rate environment. Last but not least, Warren Buffett’s biggest homebuilder investment, D.R. Horton, made headlines last month. D.R. Horton acquired Truland Homes, the largest homebuilder along the Gulf Coast, for $100 million in cash. The money is moving, and the market has not yet caught up. Most of these companies are still heavily discounted. So how can you profit from this housing squeeze? An Easy Way to Profit from the Squeeze One easy way to profit is to invest in Hoya Capital Housing ETF (HOMZ). It’s an exchange-traded fund (ETF) that invests in companies operating across the housing industry, from real estate operations and home building to construction. HOMZ also invests in companies engaged in home improvement and furnishings, housing finance, residential REITs, renting operations, and related technology and services. You literally get everything housing-related, including the kitchen sink. HOMZ – which was only formed on March 19, 2019 – is considered a small-cap ETF, with just $37 million in assets under management, or AUM. But its expense fee is reasonable at just 0.30 basis points. Plus, it pays monthly dividends. Now that’s an easy income-oriented way to profit from the housing squeeze shift. Get in early before the rest of the market catches on. Happy SWAN investing, Brad Thomas Editor, Intelligent Income Daily P.S. If you’re looking to beat investors to the punch in other areas, check out our Intelligent Income Investor service. We recommended a pick that is now up 30+% as a way to play the demand for a vital component in the AI space and Amazon’s digital tech space. I call this play “Amazon’s Secret Royalty Program.” And you don’t have to own Amazon to get in on it. To learn more, [click here](. IN CASE YOU MISSED IT… [ATTENTION: Digital Dollar Could Send this $0.25 Play Skyrocketing]( In just a few days, the U.S. government could announce [this mandatory recall on the U.S. dollar…]( And replace it with a new digital dollar. And that could send [this $0.25 alternative investment skyrocketing.]( This is the same type of investment that’s already attracting the attention of legendary investors and billionaires like Elon Musk, Mark Cuban, and George Soros. If you know the necessary steps to take right now, not only will you protect your money, you could come out of this shift wealthier than you ever thought possible. But you need to act fast. [Click here to get the exact steps to take right now.]( [image]( [Wide Moat Research]( Wide Moat Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.widemoatresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Wide Moat Research welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-415-6046, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@widemoatresearch.com). © 2023 Wide Moat Research. All rights reserved. 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