"We're in Nirvana Right Now for Housing"

Ivy Zelman, the CEO of Zelman and Associates, was recently on CNBC’s Halftime Report, and her outlook for housing is excellent.

Zelman is “the most bullish on US housing as she’s been in 22 years”, she sees it as a superb investment that is sure to increase for at least the next half decade.

The reasons behind her sentiments:

  • The USA is currently at a 30 year low of inventories. Home sale demand is increasing extremely fast and inventories are down 50% from 2008, meaning prices are now rising.
  • Mortgage financing is the best it’s ever been. Interest rates are at an all-time low and down payments are still at rock bottom meaning more people can afford to purchase houses.
  • Rent inflation is causing people to want to buy. People are reconsidering renting amid these high prices, further increasing the demand for home ownership.

Overall, consumers feel much better about the housing market than they did even a year ago. The crash seems to be a distant memory and people feel like they want to get in to the housing market, or they will miss the current rally.

Zelman says that “home prices will go up for the next four to six years”, as home price cycles do not change direction fast and right now the ship is pointed upwards.

View the interview here

Zelman and Associates is a financial research and analysis firm. They specialize in industry and company specific research, including macro economic implications on the banking, mortgage, homebuilding and building products sectors. They cater to large institutional investors and are based in Beachwood, Ohio.