STUART VARNEY: The boom in home prices is a serious wealth creator. If you own a home, just about anywhere, you’re in the money.
Your equity stake has grown. Sixty percent of American households own the home in which they live, so we’re talking a lot of people, sitting on a lot of money.
[The] obvious question: Can you hang on to your real estate gains? My answer: a “qualified” yes.
“Qualified” in the sense that some of the astronomical gains in the hottest markets will cool off, and some buyers may be turned off by bidding wars.
In some places, I can see a modest price retreat. But no crash. This is not 2007-2008 when the bottom fell out of the market. Back then, there was a huge over-supply of homes and a surge in home-owner bankruptcies.
Today, the opposite. There’s a chronic shortage of homes for sale, just as remote work brings a surge in demand.
And there’s no shortage of money: A hundred million Americans are getting payments from the government, and 100 million Americans have made serious money in the stock market and in their 401k’s.
Here’s my bottom line: I think your money is safer in your house than it is in stocks.