3 Reasons the Housing Boom Is Just Beginning
Back in February, I recommended a great trade to let you home in on the white-hot housing market.
Today, I’m happy to tell you the market has only grown hotter, and my February recommendation has only gotten better.
In today’s Bold Profits update, I detail three reasons why the housing boom is going to keep going up:
- Why first-time homebuyers are out in force.
- Why the home vacancy rate is the lowest in 25 years.
- Who’s buying all those new homes, and why they’re going to keep doing so.
I believe the boom is just getting started.
Check out my video below.
Bold Profits Daily
April 30, 2019
Hey everyone. It’s Paul with your Bold Profits Daily.
Today I have an update on what has been an unbelievable trade — a great trade for you. I want to look back at this headline where I told you to hone in on the millennial housing boom.
In that update, I told you to buy the iShares Home Construction ETF (ITB). Look at that performance, up 8% at the peak and now down a little bit.
And so I figured it’s prime time for you to have an update on what you should be doing from here. Should you be taking profits? Should you stay in? Or, if you got out, should you come back in?
So, let’s go.
Three reasons why I believe the millennial housing boom is going to keep going. In fact, I believe it’s just getting started. I believe the biggest gains are still ahead.
Reason No. 1:
First-time homebuyers are still out there looking for homes. Every good, real, proper bull market — whether it be the stock market or housing — depends on the base buyer.
For homes and in housing, that’s the first-time homebuyer; they form the base. The fact that the first-time homebuyer has not been scared off by the recession talk of last year, not been scared off by interest rates or by all the doom and gloom that’s been there for the last three to six months — this tells you this millennial housing market is rock-solid and I believe is going to continue to keep going.
Reason No. 2:
There are very few homes out there. Look at this headline. The vacancy rate for homes in the United States is back to 1994 levels — 1994!. I can barely remember 1994. That was so long ago — 25 years ago almost. In other words, the number of homes out there is scarce.
This means it’s a perfect market for companies in this index — homebuilders that have to go and put up these homes that people want to buy.
Of course, once you buy a home what do you do? You spend money on appliances, on all the different things that make a home nice so you want to live in it. That’s my reason No. 2. Homes are still scarce out there.
Reason No. 3:
This market, as I’ve been telling you, is all about the millennial generation. We have evidence of it today. In fact, nearly 50% of all mortgages taken out in 2018 were from folks in the millennial generation. They are the ones that really make this market. They are the ones out there buying.
Not just first-time homebuyers, but many of them are also out there stepping in to that first step-up home. We now have evidence of this everywhere. Homebuilders are telling us they are moving from servicing the baby boomers to really focusing on millennials.
Those are my three reasons why I believe this ETF that has all of these homebuilding companies in it is still good money. You can make, I believe, incredible money by being in this ETF: iShares Home Construction ETF (ITB).
However, if you want — and you know what’s coming, this is my shameless plug for my services… Profits Unlimited where we have at least two unbelievable companies that play into this trade. One is an online furniture retailer and another one is one I believe is going to be the Amazon of real estate — they are changing real estate.
In my Extreme Fortunes service, we have a number of companies that also play into this trade. If you want the big gains — hundreds of percents of gains, thousands of percents of gainst — you have to check into my services. Profits Unlimited and Extreme Fortunes, check those out.
I will be truthful and say the ETF will also give you perfectly good performance.
That’s my Bold Profits Daily for this week. Please make sure to like, subscribe, share and comment. I’ll have another one for you next week. Until then, this is Paul saying bye.
Open the Door to Housing Profits
There’s a reason millennials are my favorite generation: They’re driving industries and investment opportunities that offer Bold Profits investors incredible breaks.
And housing is no exception.
Nearly 50% of all mortgages taken out in 2018 were from millennials buying their first homes or stepping up to their second.
As a result, homebuilders are shifting from catering to baby boomers to focusing on millennials.
At the same time, surveys tell us first-time homebuyers haven’t been scared off by the recession talk of last year. And the vacancy rate for homes in the United States is lower than it’s been since 1994 — meaning few homes are available for sale.
That all adds up to the hottest housing market we’ve seen in decades.
And that means it’s a perfect market for the companies in the exchange-traded fund (ETF) I recommended in February — and remains a white-hot opportunity.
My Profits Unlimited and Extreme Fortunes services also have several unbelievable companies that are capitalizing on the housing boom. And if you want the big gains — in the double or triple digits or higher — you have to go with individual stocks, like those in my services.
But the ETF I’m recommending again today is a more conservative play that will give you perfectly good performance.
Check out my video today to find out more.
That’s all I have for this week. I’ll be back next week with another Bold Profits Daily.
Editor, Profits Unlimited