Tags: Zelman | housing | market | nirvana

Housing Analyst Zelman: Housing 'Nirvana Is Not Far Around the Corner'

By    |   Thursday, 27 Feb 2014 10:25 AM

While the housing market may have stumbled in recent months, a rebound is coming soon, says renowned housing analyst Ivy Zelman, CEO of Zelman & Associates.

"Nirvana is not far around the corner," she told CNBC.

Zelman attributes the recent drop in home sales largely to a supply shortage. Inventory levels have dipped for both new and existing homes, and housing starts declined in January, she notes.

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"What we hear from builders right now, they did not have enough communities to meet demand in 2013," she explains.

"They were caught by surprise by the surge in demand, so they didn't have enough developed lots to open up new communities. This year they caught up, they're very prepared. We're going to have double-digit increases in new communities."

Unlike many other analysts, Zelman doesn't blame weather for much of the recent sluggishness in home sales.

She also doesn't put much stock in Wednesday's Commerce Department report that new home sales rose 9.6 percent in January from December. A small sample size creates a large margin of error for the number, Zelman argues.

Still, she's optimistic on housing overall, and some other experts share her sentiment.

"I'm hopeful the recovery in home sales will get back on track in the next couple of months," Jim O'Sullivan, chief U.S. economist at High Frequency Economics, tells Bloomberg.

"If we continue to get solid employment growth, which was the trend last year, chances are you'll see home sales continue their uptrend."

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While the housing market may have stumbled in recent months, a rebound is coming soon, says renowned housing analyst Ivy Zelman, CEO of Zelman & Associates.
Zelman,housing,market,nirvana
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2014-25-27
Thursday, 27 Feb 2014 10:25 AM
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