I recently read some research on the housing market written by Stephen Leeb in the July issue of The Complete Investor.
In it, he notes that homes are the largest U.S. household asset. Homes are far more widely distributed than stocks, on which we tend to focus much of our attention.
The January 2000-March 2016 S&P/Case-Shiller Composite Home Price Index brings us some good news.
Housing affordability is higher than at any time before 2009. The reason this is so important is that a decline in home affordability can reduce consumer spending which negatively impacts certain corporate profits.
Worse case there can be mass foreclosures as we have also seen.
So the current housing indicators are very positive for the U.S. economy.
If you would like investment ideas based on this, let’s have a conversation to be sure that any recommendations are suitable for you.