In this video, Motley Fool analyst Austin Smith talks with host Chris Hill about trends in the housing market and focuses on three reasons home values may plateau in the short term. Many homeowners are still too far underwater for moving to a new home to be a financial possibility, while private equity firms are buying a large number of homes at a premium, which is driving up home prices across the board. Meanwhile, interest rates are rising. With all those factors combined, demand to buy a home may take a serious hit. Austin tells investors how this could cause short-term stagnation in the value of your home, and which stocks are great picks for a housing market where people are staying put.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

The article Watch Out: 3 Reasons Your Home Value May Plateau originally appeared on Fool.com.

Austin Smith owns shares of Zillow. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends Home Depot, Lowe's, Tile Shop Holdings, and Zillow and owns shares of Tile Shop Holdings and Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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