The REA Group Limited (ASX: REA) share price has continued its positive run and pushed higher again on Wednesday.
So much so, the property listings company's shares hit an all-time high of $108.30 this morning.
Why is the REA Group share price at an all-time high?
Investors have been scrambling to get hold of REA Group's shares in recent months thanks to its resilient performance in FY 2019 and improving conditions in the housing market.
In respect to the former, last month REA Group revealed an 8% increase in full year revenue to $874.95 million and a 6% lift in net profit from core operations to $295.5 million despite the housing market downturn.
The main driver of this growth was its Australian business. Australian operating income increased by 8% to $826.3 million thanks to the positive performance of its residential property and online advertising business.
In light of this, I can't say I'm surprised to see investors snapping up its shares after positive housing market data was released by the Australian Bureau of Statistics this month.
That data revealed that the value of new loans issued to households increased by a sizeable 3.9% to $32 billion in July. This was the biggest increase in almost five years and could be a sign that the downturn has come to an end.
This would be a big positive for REA Group, as it could lead to a major lift in listings volumes. Which, combined with new revenue streams and prices increases, could mean the company is at the start of a major upgrade cycle over the coming years.
Should you invest?
With its shares up approximately 45% in 2019, they certainly aren't the bargain buy that they were nine months ago.
And while better entry points may emerge in the coming months, I still see a lot of value in them for investors that are prepared to make a long-term investment.
