From Greg Wilson, chief analyst, the Legacy Portfolio: “We will probably never see interest rates like this again…”
“Millennial” husband and wife Andy and Sarah Hadad just bought a three-bedroom, one-bathroom home for $149,900. It’s their first time as homeowners.
They’re not alone.
A quick look at the numbers paints a bullish picture for the U.S. housing market:
- New home starts are up to 1,036,000 today from their 2009 post-crash low of 478,000. But that’s still 30% below the historical average. And housing inventories are still 40% below the 2007 peak.
- Mortgage rates hover around 4%. That’s over 50% below the historical average.
- Housing is still affordable. The Housing Affordability Index is 38% below its historical average. The cost to rent, however, is at record highs.
And a recent Zillow survey shows 83% of millennials (those born after 1980) are excited about future homeownership.
At the Legacy Portfolio, we’re pleased to see the strength in the housing market and economy. But, we’re even more excited for a different reason…
One of our Legacy stocks sits right in the middle of the housing recovery. It’s banking so much cash, the company’s performance now exceeds our current buy-up-to price. So, for only the third time in Legacy Portfolio history, we’re raising our buy-up-to price. You can now enter a new position in this cash-flush powerhouse company.
All Legacy subscribers can click here to learn the details inside the July issue.