What Should You Do As Home Prices Skyrocket?
I’m sure you’ve seen the news, but just in case – housing prices are skyrocketing…
According to one survey the median price of existing homes sold in March was $329,100. This is a 17.2% increase from March 2020.
This is the largest one-year increase on record. Yes, even higher than when the housing bubble was building in 2005 and 2006.
And according to another – the S&P CoreLogic Case-Shiller home price index – all housing prices – including existing and new built homes – rose 12% from February 2020 to February 2021.
This is the largest single year increase since 2006 when the housing market was catching on fire during that housing bubble.
If you’re looking to buy a home now – you’re likely having difficulty.
Multiple bidders on homes are now the norm… And prices ending $30,000 above the listing price are also normal.
I’ve talked with two separate home sellers in recent weeks… And both told me what’s going on now in today’s housing market is crazier than what was happening in 2006 before the bubble popped that led to The Great Recession.
That’s a terrifying thought.
And this will not end well.
This is scary for the overall health of the housing market and the economy… Its also bad if you’re looking to buy a home.
But if you’re looking to sell you can make a killing.
In yesterday’s article I told you why you need to build an emergency fund now to protect your retirement portfolio.
One way to make that process go faster would be to sell your house.
If you’ve owned a home for a while, it may be worth it financially to sell your home at the massively inflated prices.
But this will only work if you’re comfortable with that… AND you also want to move into a rental after.
Like I said above, buying now is rough and you will overpay. Doing this won’t help your retirement unless you massively downsize.
But if you sell your home at a huge price – especially if you’ve owned your home for a while and have paid down the mortgage some – you can make a lot of money that you can then invest back into your retirement.
If this doesn’t sound like a good idea for your situation… Another choice would be to refinance your home.
Because mortgage rates are so low right now – one of the reasons so many are looking to buy – you could save anywhere from $100 to $500 or more per month on your mortgage payment depending on your situation.
This would help you add even more money to your retirement nest egg as well.
I hope this unconventional set of tips gave you some more ideas on how to make more money for your retirement… While also protecting what you already have before any kind of crash.
If you want to see our tip from earlier this week on why you need to avoid bonds in your retirement account click here.
With this extra money, make sure you’re invested in great stocks that have the following traits…
- They’re cheap.
- They have little to no debt compared to a lot of cash.
- They produce large profits and cash flows.
- And make sure they aren’t in industries that could be hammered by Covid.
These kinds of stocks – the ones I try to find for you every day – are things you should continue investing in because they will provide you good to great returns no matter what the market is doing.
All while protecting you from the major risks like valuation, unemployment, debt, and inflation.
These are the kinds of stocks I show you every day – either ones to buy or ones to avoid.
Here are some of those stocks I’ve already found for you to consider investing in to protect your portfolio…
Your guide to financial freedom and achieving your retirement goals.
Always in your service,
Publisher Stock Market Daily
P.S. Breaking Poll – Do You Plan To Sell Your Home To Invest In Your Retirement?